Inhouse Agriculture Property On 1004

[timd354]

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.

I used to work at Freddie and can tell you that the secondary market would likely have no problem with the property you describe. The GSE's purchase & guarantee loans on properties that are primarily residential in nature, that does not mean that the property cannot have some limited agricultural or commercial usage. Without having seen the property is question, I would guess that a house on a 13 acre site with 10 acres in corn in Missouri would almost certainly be primarily residential in nature and would not in any way be considered to be a commercial or working farm. Where the OP is going to get in serious trouble is if he appraises the house and 3 acres separately from the remaining 10 acres....if that loan is destined for the secondary market then that simply is not allowed

 

[J Grant]

If it is not a GSE or Fannie backed loan and not on a URAR form, more latitude in what you can do. Ask your client what they will accept

 

[JTip]

10 acres is only enough to bring in the wildlife.

Perhaps the owner generates a pittance from renting out the land to a local farmer.

 

[Terrel L. Shields]

It isn't clear to me that it is secondary market assignment or simple in house bank appraisal.

 

[Vermonter]

Can't find a property on 10 or more acres here that doesn't have a few acres being hayed, tapped for maple or have something growing or pastured on it. Income is usually negligible. Trade a hundred maple taps for a gallon or two of syrup, have a farmer hay instead mowing yourself, let your neighbor run their sheep on it a few weeks a year, that kinda stuff. Some guys with larger parcels do it to keep the property in current use (reduced taxes).

Value the house and 13 ac. Mention the corn and any income, any impact on marketability or value and send it.

 

[Mark K]

Agree with others, 13 ac. is not a farm.

If its to be kept in-house, it doesn't matter. But, from my experience Freddie will buy loans with 10,20, or more acres.

 

[hastalavista]

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

What is the legal reason, what is the purpose of comparison, or what is the reasonable analysis that would result by using such a hypothetical condition for a residential mortgage appraisal assignment?



Unless the assignment is for a lot-line adjustment, I sure don't see how the HC you describe meets any of the elements required to use a HC (given the intended use)?.

 

[Dublin ohio]

Can't find a property on 10 or more acres here that doesn't have a few acres being hayed, tapped for maple or have something growing or pastured on it. Income is usually negligible. Trade a hundred maple taps for a gallon or two of syrup, have a farmer hay instead mowing yourself, let your neighbor run their sheep on it a few weeks a year, that kinda stuff. Some guys with larger parcels do it to keep the property in current use (reduced taxes).

Value the house and 13 ac. Mention the corn and any income, any impact on marketability or value and send it.

Run into same type situation in rural areas I work in. Most of the time the owner lets a farmer use the excess acreage just so they do not have to maintain it. Maybe a $50-$100 yearly per acre hand shake agreement. Income always negligible. Most of the time not sufficient to even declare income on taxes. Always disclose situation. Most of them end up going to fannie. Never had one questioned. I highly doubt that the owner is farming it themselves unless they have additional agricultural acreage adjacent to it.

 

[CANative]

J...

Site Analysis

The appraisal must include the actual size of the site and not a hypothetical portion of the site for the subject property. For example, the appraiser may not appraise only 5 acres of an unsubdivided 40–acre parcel. The appraised value must reflect the entire 40–acre parcel.

https://www.fanniemae.com/content/guide/selling/b4/1.3/04.html

 

[J Grant]

thanks!