Incorrect Acreage on VA Appraisal

[Zoe]

@Zoe To answer your question, "Would you sell the two properties together or separately?" I would not sell the properties together. Possibilities in the future are:
1) not sell the vacant lot and
1a) leave it untouched, or
1b) drill a well and install a septic system to have the vacant lot be considered improved and ready to build, and future-proof against any County and/or State changes to wells & septics that would prevent them being placed on the property (has happened in another state where I lived), and keep the lot
2) sell the existing house & property, and then use the proceeds to help pay some of the cost of building a new house on the vacant lot for us to live in
3) sell the vacant lot and use the proceeds to pay down the new mortgage on the existing house & lot
4) sell the vacant lot to a family member for a reduced price

The market value, in my opinion which is based upon two other vacant land sales in mid-2023 a few miles away, and a current MLS listing about 1/4 mile away, is $160,000.

There were two separate purchase agreements, the appraisal request was only for the house and the lot it sits on no appraisal request was made for the vacant lot. I did not see any reason for the vacant lot to be appraised: I know the value is $160,000, I know from talking to the County that it is a separately deeded lot, it can have a well & septic placed upon it, it is sellable, and my mortgage broker has stated the new mortgage is only on the house & the lot the house is on, and the vacant lot is unencumbered by their mortgage company.

With today being a holiday there is no new news and as many have said, try not to worry, and see what questions, if any, come my way.

Thank you all again. It has done a lot to calm my nerves.

you drug me back in Vet.

I asked what you would do since you own both lots. You said seller sold you second lot for like $5 and wanted to sell them both together. Forget doing any improvements to the second lot if you want to sell them separate. You can, but let the new owner do that.

Sir with all due respect, I don't know what the second lot is worth on the market.

 

[Zoe]

H&B use and MV are like twins. H&B use is required on MV appraisal.

This is summary of H&B use analysis:

The four tests of highest and best use are: (1) legally permissible (2) physically possible (3) financially feasible and (4) most profitable. The first two tests are interchangeable in order and, in many circumstances, the last two are combined. Steps Three and Four (financially feasible/most profitable) cannot be determined until the first two steps are analyzed.

Pay particular attention at steps 3 and 4 which are relative to your property you just bought. Pay attention to all the steps.

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[Zoe]

I'm confused by some of the information given by the OP in the post (see below). But I don't think the Veteran should worry about anything. No worries.
View attachment 93643

That would be a deed restriction. People can do that on the warranty deed.

Always remember real property rights. Always focus on real property rights. Forget everything else.

 

[Tiffany Gibbons]

@Tiffany Gibbons I am unsure of your specific confusion but let me try to clarify.

The selling Realtor listed both properties in the MLS as one larger property. It was only upon our Realtor making an inquiry of the Selling Realtor did we learn there were actually two separate properties that would require two separate purchase agreements since were buying via obtaining a mortgage, as we were told by our mortgage broker and by our Realtor that one mortgage cannot be used to buy two separate deeded properties. Additionally, the Selling Realtor told us her clients, the sellers, would not sell the vacant lot separate from the house, and would not sell the house separate from the vacant lot. The sellers could have sold the vacant lot separate from the house as there is no reason they could not separate them but it was just their desire that they wanted to sell together. There was no issue until the Appraiser called stating he had appraised it as one larger property, and had not realized it was actually two separate lots, with the house being on the smaller lot. At this point all I can do is worry less and wait to see if anything comes my way.

There was no confusion. I've just had a couple like this recently (in a different state) where there were 2 parcels but VA and the lender specified that both parcels were to be appraised "subject to " consolidation into one parcel for tge loan. I'm a VA appraiser. Also, I worked in an assessor's office doing such consolidations (and splits) that many fee appraisers don't get to see and see how the mapping works with those legal descriptions on deeds.

 

[Zoe]

There was no confusion. I've just had a couple like this recently (in a different state) where there were 2 parcels but VA and the lender specified that both parcels were to be appraised "subject to " consolidation into one parcel for tge loan. I'm a VA appraiser. Also, I worked in an assessor's office doing such consolidations (and splits) that many fee appraisers don't get to see and see how the mapping works with those legal descriptions on deeds.

yes, assessors locally anyway combine parcels many times for tax purposes. You smart girl. You posted you worked for tax assessor office.

That is more prevalent rural counties especially. The land owner comes in and complains and says I want these parcels combined on my taxes. Assessor will say okay. We can do that.

Bring the assessor donuts and coffee, it might happen.

 

[Zoe]

The tax assessor don't actually combine the lots, The lots are still separate. But they will put both parcels on one tax bill and tax card sometimes. You go to the assessor and say can I see the tax map on this one? They said, yes, that is two parcels on one tax id card. They get one tax bill for both parcels.

I have seen it in rural counties.

I would imagine the vet may have two different tax bills. I'm guessing. Their properties probably can't be combined on one tax card because one is improved with a house and one is not improved with a house. There may be other factors as well such as zoning, etc.etc.