Lender Requesting Commentary to be removed

[Mark K]

Now they have an updated purchase agreement w/o the other lot and want me to remove the commentary I previously made. Thoughts?

NIKE. Just do it. Prepare a new report leaving out the reference to the second lot, bill them accordingly.

From your first post it looks like the additional parcel is a platted, buildable parcel, not excess and not needed to support the improved parcel and not one econonic unit. Some lenders frown on this and in the future I'd clarify this with the client.

BTW, didn't read all the responses. Too many people want to turn simple math into a differential calculus equation.

 

[Paradiddle]

Answered.

 

[Paradiddle]

NIKE. Just do it. Prepare a new report leaving out the reference to the second lot, bill them accordingly.

From your first post it looks like the additional parcel is a platted, buildable parcel, not excess and not needed to support the improved parcel and not one econonic unit. Some lenders frown on this and in the future I'd clarify this with the client.

 

[Surf Cat]

Please lets stay on topic, which would indeed be rare on this forum.

The topic is confusing in your original post. There's pertinent details that are being left out or not thoroughly explained for the posters to give guidance on the matter.

 

[Paradiddle]

The topic is confusing in your original post. There's pertinent details that are being left out or not thoroughly explained for the posters to give guidance on the matter.

 

[alebrewer]

Seems to me you have two options: (1) let your client know that F/F do allow excess land to be included in the valuation as value in use (right or wrong), and that you could have appraised it that way originally - in which case, you'd just revise your report to include the 2nd lot, or (2) treat it as a new assignment by using the 'new' contract (as one of the assignment elements have changed).

 

[Surf Cat]

Were the two lots included in the original purchase agreement? If so, why did you only value the one with the improvements?

Was the client informed prior to proceeding that you were only going to value the lot with the improvements and omit the adjoining lot?

Did the price on the new rectified purchase agreement change?

 

[TerryRohrer]

Out of curiosity, how is everyone developing their opinion of the value in use of the second tract in these situations?

 

[Mike Ault]

Out of curiosity, how is everyone developing they're opinion of the value in use of the second tract in these situations?

By finding homes that sold with double lots and measuring the contributory value against sales on single lots. They're out there. You'll typically find those in subdivisions where the primary developer/builder moved on leaving a bunch of orphan lots for sale.

 

[George Hatch]

Out of curiosity, how is everyone developing their opinion of the value in use of the second tract in these situations?

When there's a marketable 2nd parcel I do a separate land sale analysis and include the 2nd value in my report. But I also do as mentioned above and look for 2-parcel combos to compare against the SFR-only sales.

With that said, I don't work the GSE pipelines so what's right for them might vary