Land Appraisal

[Michigan CG]

I think my point here is that not to lose sight of what could be considered a misleading report. Which is why we need to be ethical rather than a Made As Instructed report.

Seriously?

 

[BRCJR]

Yes, if you want it to be used for ethical purposes and not to trick anyone, otherwise you are flying blind.

You, as an appraiser, have no control over what someone does with the appraisal. You also have no liability, unless you are a partner to the misuse.
Appraise to the H&BU and your job is complete, so long as you are not part of a conspiracy.

 

[Deleted member 152047]

I think my point here is that not to lose sight of what could be considered a misleading report. Which is why we need to be ethical rather than a Made As Instructed report.

Okay Amy, when would anything that you mentioned change the market value of the property?

Eminent Domain- Market Value is the same
Private Party Internal Use- Market Value is the same
Lending- Market Value is the same
Billy Bob Son In Law wants to purchase the site- Market Value is the same

You think the appraiser is unethical if they don't know exactly what the appraisal is going to be used for? That is ridiculous.

You clearly state your scope of work and the appraisal problem that is to be solved. Where am I being misleading?

Quit slinging mud, think about what I am saying.

 

[The Warrior Monk]

This is not true, a property does not have to be it's own parcel to be the subject of an appraisal sans an HC. If you clearly state what the subject is, you are good, unless it is completely unfeasible (legally) to subdivide the parcel from the whole.

There's been plenty of discussion on this over the years. It is true that a portion of a property can be appraised without a hypothetical condition. However, the value of that portion of the property has very different values depending on whether no planning work has been done, whether the lot is in the process of being subdivided, or whether it is actually subdivided. For a market value assignment, where the parcel is not partitioned off and it is valued as if the subdivision is completed, the parcel is being appraised contrary to how it actually exists; i.e., property rights being valued are not the property rights that currently exist. Therefore I would argue that HC is necessary.

 

[The Warrior Monk]

With this type of assignment, at minimum, I would require the legal description, otherwise the assignment is a no-go. If the legal description is in place, I would need to know at what stage the subdivision approval is at, or otherwise would have to research the feasibility of the subdivision. Lastly, the assignments conditions would have to be appropriate to the intended use.

 

[Mark K]

.... i.e., property rights being valued are not the property rights that currently exist. Therefore I would argue that HC is necessary.

In many areas all that's required to legally divide a parcel is a survey. No platting, approvals, etc.

If I can reasonably identify a parcel as, for example, the west half of parcel # 2345678 containing 5 acres, how are the property rights being valued not the rights that currently exist? There's nothing to prevent the appraisal and/or conveyance of the fee simple rights in either the original or the split parcel.

 

[jay trotta]

Subject to being a separate parcel.

It depends; it could be deemed "Open Space"....for privacy, possibly enhancing the Value of the 4.5 ac parcel ? How can the .50 ac piece be drawn ? does it require being a square ?

 

[The Warrior Monk]

In many areas all that's required to legally divide a parcel is a survey. No platting, approvals, etc.

If I can reasonably identify a parcel as, for example, the west half of parcel # 2345678 containing 5 acres, how are the property rights being valued not the rights that currently exist? There's nothing to prevent the appraisal and/or conveyance of the fee simple rights in either the original or the split parcel.

IMHO, there is still a difference between a property that is subdivided as of the date of value, and a property that is not subdivided as of the date of value. A property that is subdivided now can be purchased now and a deed filed. A property that is not single-and-separate requires additional action, and the transaction would take place in the future.

Properties that are not subdivided have different utility and value than those that are. Transactions do occur of a whole parcel, subdivisions in progress, and completed subdivisions. These all have different property rights, utility, and value.

 

[Amy Perkins]

Okay Amy, when would anything that you mentioned change the market value of the property?

Eminent Domain- Market Value is the same
Private Party Internal Use- Market Value is the same
Lending- Market Value is the same
Billy Bob Son In Law wants to purchase the site- Market Value is the same

You think the appraiser is unethical if they don't know exactly what the appraisal is going to be used for? That is ridiculous.

You clearly state your scope of work and the appraisal problem that is to be solved. Where am I being misleading?

Quit slinging mud, think about what I am saying.

Actually Eminent Domain Market Value can be very different from private party. It is the highest market value number 1 and number 2 it can damage the value of the remainder parcel, which is called severance damages. Say its a piece of land on 400 acres, but it is the only land that percolates; now the rest is useless. Severance damages. Say it is a part of a rural property of which the bank only lends on suburban, now you have created a misleading report. You better know why you are appraising a property or you could be misleading without knowing it. How can you solve a problem without knowing what it is?

 

[SpartanAG]

What exactly is a

Made As Instructed report.

and why aren't they ethical?