Inhouse Agriculture Property On 1004

[hoffman]

I have a question, if a property is situated on 13 acres and 3 of those acres are residential in nature and the other 10 are corn field (crop land) , can you appraise this property on a 1004 based on a hypothetical condition.

 

[gregb]

Would the hypothetical condition state the subject has only 3 acres?

 

[BRCJR]

What is the H&BU? What is the HC?
What amount of income is derived from the cropland?

 

[Michigan CG]

Yes you can put a house and 13 on a 1004. There is no need for an HC. 10 acres of corn in Missouri is a hobby, not a farm.

 

[hoffman]

Would the hypothetical condition state the subject has only 3 acres?

basically yes, I was thinking as if it was subdivided from the crop land.

 

[hoffman]

Yes you can put a house and 13 on a 1004. There is no need for an HC. 10 acres of corn in Missouri is a hobby, not a farm.

Im thinking that if you complete the appraisal on form 1004 for a bank, even if it is kept in house, they maybe be able to sale it on the secondary market when it should not be. However fannie does not allow for properties which are not residential in nature.

 

[hoffman]

Would the hypothetical condition state the subject has only 3 acres?

basically yes

 

[gregb]

Consider this discussion:

http://appraisersforum.com/forums/t...aising-only-5-acres-from-larger-tract.115184/

 

[Michigan CG]

Im thinking that if you complete the appraisal on form 1004 for a bank, even if it is kept in house, they maybe be able to sale it on the secondary market when it should not be. However fannie does not allow for properties which are not residential in nature.

I am wondering where you get your information from. 10 acres of corn is not a farm. The secondary market finances many properties with acreage. 10 acres of corn field in Missouri is worth $40,000 maybe?

I think that maybe rural appraising is not your thing.

 

[J Grant]

Does Fannie allow appraising only portions of acreage for res lending...I don't believe so but lack the time to lok it up.

A house on with 13 acres and 10 acres planted corn is likely a hobby farm, not a working agricultural farm, but the issue is introducing an HC. It has to be an as is value for res lending purpose URAR unless you make it subject to the HC (owner would have to sever 3 acres with house from the 13)

It is what it is, a house on 13 acres .