Got Another Weird One FHA

[Xavier Hargrove]

I received an appraisal for a FHA refinance. The property parcel lies between two states. I am licensed in both states. Most of the property which includes the structure is in one state and a partial part of the parcel on the other side of the state line. Based on GIS maps the opposing state does not recognize it as a parcel. One state taxes the whole parcel and if transferred would only needed to be recorded in the one state per state to state jurisdiction agreements. The lender requests comps that straddle the state line. I have found one sale that straddles but is not comparable at all and is 25 miles away. I could make adjustments of course but want to know if anyone has run into this before. My thoughts is if it is taxed by one state then why would a buyer value it any more or less being straddled across the state lines. Any thoughts, on how you address this?



Happy Holidays

 

[Dublin ohio]

Based on GIS maps the opposing state does not recognize it as a parcel. One state taxes the whole parcel and if transferred would only needed to be recorded in the one state per state to state jurisdiction agreements

I would argue that for real estate valuation purposes it is subject to the jurisdiction of the state the primary parcel is located in. What does the legal description say? Is the parcel in the adjoining state taxed at the same rate as the primary parcel.

 

[alebrewer]

Use the sale from 25 miles away to build an argument that the market does not penalize a property for straddling the lines, not necessarily as a comp in the grid.

 

[shrubberyvaluation]

I received an appraisal for a FHA refinance. The property parcel lies between two states. I am licensed in both states. Most of the property which includes the structure is in one state and a partial part of the parcel on the other side of the state line. Based on GIS maps the opposing state does not recognize it as a parcel. One state taxes the whole parcel and if transferred would only needed to be recorded in the one state per state to state jurisdiction agreements. The lender requests comps that straddle the state line. I have found one sale that straddles but is not comparable at all and is 25 miles away. I could make adjustments of course but want to know if anyone has run into this before. My thoughts is if it is taxed by one state then why would a buyer value it any more or less being straddled across the state lines. Any thoughts, on how you address this?



Happy Holidays

Look at prior arms length sales of subject and compare to comps in same era

 

[Xavier Hargrove]

I would argue that for real estate valuation purposes it is subject to the jurisdiction of the state the primary parcel is located in. What does the legal description say? Is the parcel in the adjoining state taxed at the same rate as the primary parcel.

It is not taxed at all or identified as a parcel

 

[Xavier Hargrove]

Use the sale from 25 miles away to build an argument that the market does not penalize a property for straddling the lines, not necessarily as a comp in the grid.

Look at prior arms length sales of subject and compare to comps in same era

Good point, virtually the same and similar assessment value from county tax department as other similar parcels and properties.

 

[J Grant]

I received an appraisal for a FHA refinance. The property parcel lies between two states. I am licensed in both states. Most of the property which includes the structure is in one state and a partial part of the parcel on the other side of the state line. Based on GIS maps the opposing state does not recognize it as a parcel. One state taxes the whole parcel and if transferred would only needed to be recorded in the one state per state to state jurisdiction agreements. The lender requests comps that straddle the state line. I have found one sale that straddles but is not comparable at all and is 25 miles away. I could make adjustments of course but want to know if anyone has run into this before. My thoughts is if it is taxed by one state then why would a buyer value it any more or less being straddled across the state lines. Any thoughts, on how you address this?



Happy Holidays

The lender is not the appraiser, and the lender is not choosing the comps. A buyer likely does not care that it straddles a state line; it just happens that a portion of the parcel is in another state. Use comps that are similar in teh market area - if you have one comp that straddles a state line you are lucky .

 

[alebrewer]

The only way I'd pay less for a property that straddled state lines is if it was Oklahoma that it straddled...

 

[Xavier Hargrove]

Use the sale from 25 miles away to build an argument that the market does not penalize a property for straddling the lines, not necessarily as a comp in the grid.

I see the reasoning, thanks, I've done more work for less money before can't complain.

 

[Xavier Hargrove]

The lender is not the appraiser, and the lender is not choosing the comps. A buyer likely does not care that it straddles a state line; it just happens that a portion of the parcel is in another state. Use comps that are similar in teh market area - if you have one comp that straddles a state line you are lucky .

Good point, thanks "screw off but here is something to prove my point, but keep sending me orders I can figure out hard problems"