Lot Size

[Wes Stewart]

We have had a recent appraisal on our property which is irregularly shaped, however, the lot size listed on the tax appraisal website shows it as rectangular leaving out almost a 1/4 acre. This incorrect lot size was used on the appraisal of our property. The comparables given were all of much smaller lots than ours due to the incorrect lots size used. The buyers have requested that the appraisal be done by Fannie Mae guidelines and the appraiser is stating that he is required to use the lot size as stated by the tax appraisal by the Fannie Mae guidelines. Is this correct? An urgent answer would be appreciated.

 

[Pamela Crowley (Florida)]

The appraiser is wrong. Competent appraisers KNOW the tax records are wrong often enough that the plat or a survey should be used. None of this has anything to do with Fannie Mae Guidelines.

The appraiser needs to correct this deficiency in his appraisal and on the report. To leave it the way it is would be considered misleading.

 

[Otis Key]

Wes, I gather that you are the homeowner from your statement. As such, it would seem prudent to me that you would have provided the information (survey, plat, etc.) about the lot size to the appraiser. It would seem that once you became aware of the error of the lot size that you would have provided the information to the lender, who is the appraiser's client, so that they could then forward it on to the appraiser. The longer you wait to provide the information, the more the headaches become. Also, after a certain point in time, the appraiser may have the option to decide if this is a new assignment due to changes in information, details and facts that were not presented in the first place. That would be up to him/her to make that decision.

As far as your question: "the appraiser is stating that he is required to use the lot size as stated by the tax appraisal by the Fannie Mae guidelines. Is this correct?" The appraiser is charged with utilizing sources that he/she deems reliable and accurate. As such, most county tax websites offer information that almost every appraiser considers to be accurate. If you knew this was incorrect before, why didn't you take the steps to correct the accuracy of the information?

There are several locations in the "Appraiser's Certificaiton and Limiting Conditions" that provide clarification to the appraisers' limitations and research. A few are:

1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the title to it, except for information that he or she became aware of during the research involved in performing this appraisal. The appraiser assumes that the title is good and marketable and will not render any opinions about the title.

13. I obtained the information, estimates, and opinions furnished by other parties and expressed in this appraisal report from reliable sources that I believe to be true and correct.

There is nothing that I'm aware that states the lot size is obtained from a specific source. It just must be obtained from a reliable source and one that an appraiser's peers can verify and/or research as well.

Hope that helps. However, part of the problem does appear to fall back on you if you are aware that the tax web site was incorrect.

 

[Randy Beigh]

Wes,

I assume that the value came in below the sales price, as that would be the only reason anyone would care. The appraisal is used for a business decision by the lender and they have specific needs and reasons for ordering appraisals.

A simple way to resolve this is to go to the title company and ask them to measure your lot on the map, then you provide it to the lender. It sounds like you have a rapport with the appraiser, so you could provide it to him, also.

 

[John Wilson]

So how low did the value come in under what you anticipated?

I'm assuming that's the issue.

Most irregular shaped, slightly larger lots usually don't add much value. If you're in a typical residential neighborhood with smaller rectangular lots you probably have some excess land as compared to the rest of the neighborhood.

My guess is that even if the dimensions are corrected to your satisfaction, the value will remain as is. Not unless there's some other comps with irregular shaped larger lots coming in at a higher value.

I doubt it though.

 

[Wes Stewart]

Thanks for all your advice. I am selling the home and did know of the error with the lot size. The realtors on both sides are also familiar with the error as this is the third appraisal done. The first done prior to putting the house up for sale and the second done with the first contract and now the third with the same buyers but third appraisal company. The first company adjusted the issue, the second refused to make any changes (as far as we understand it from the buyers side) and now the third appraisal which was cost split between us the sellers and the buyers has claimed that he is required to use the tax records. The realtors on both sides were present for the third appraisal and was repeatedly told of the lot size issue and was provided with the survey days prior to the appointment. There is a $17,000 difference between the first appraisal and the third. The incorrect lot dimensions are leaving out useable and buildable land. Our lot is irregularly shaped because it has a creek running along the back leaving the lot shaped by 5 sides all of different lengths.

 

[Randy Beigh]

was provided with the survey days prior to the appointment.

It seems like most of the time when people write in here, they leave out pertinent details, which they add later on. You had a survey done? The appraiser ignored it? Whoa. I wouldn't do that.

Also, the creek could have value and or put the site in a flood zone.

 

[Ms. Janet]

Hmmm............3 appraisals and the parties are still not happy.............

Sounds to me like somebody might be shopping for a value................

 

[DTB]

is the missing 1/4 acre attached to 3 acres or another 1/4 acre? Huge difference.

17k spread? Again, on what value? May be huge, may be nothing.

 

[Wes Stewart]

The first apprasial came in at $360,000 and used the correct lot size adjusted for what they call unuseable (the property line goes into the creek). The third appraisal is listing $343,000 a fourth appraiser was called today by our realtor just to ask questions and this appraiser agreed with the lot size used in the first appraisal according to software that he uses in his business. Shopping for a value not so much as shopping for an accurate appraisal! The entire lot is hald an acre. The size appraised in this third appraisal is 15,914 sq ft mol when the entire lot has measured to just over 21,000 sq ft mol including the unuseable property in the creek. The 3 comparables used in this third appraisal have lots of 8,800 sq ft mol; 15,300 sq ft mol; and 7,500 sq ft mol with adjustments of $10,000; $5,000; and $10,000 respectively. Our question here is do we continue to argue this or is it even worth it for us to argue.