Multiple Parcels

[Brad in SAC]

I'm doing an appraisal for a purchase that includes an addtional bordering parcel which significantly contributes to the value of the property. Basically, it doubles the size of the suburban lot. Is it acceptable to disclose this inclusion as a condition of the appraisal and value it accordingly?

 

[Farm Gal]

Brad:
Grab your RE dictionary and/or your beginning appraiser handbook and look up the word "assemblage".

You *may* want to do two appraisals... If the LO choses to add the figures together this is HIS action not yours... best explain someplace in both reports what you are doing and why...

OR

Perform the appraisal on both parcels useing the hypothetical condition that the lots have been combined... which in fact they are not... You may want to check out whether or not they CAN be legally combined...

and then you may have to wrestle with is any of it excess land or not which I assume from your post is not the case...

 

[Restrain]

If I was appraising both properties as a unit AFTER acquisition, then, yes, I would include it. If only the one lot is being considered, you should look at it as it stands. A comment that the buyer also owns the adjoining property can be made but it should not affect the value estimate of the subject as severed from the adjacent lot. If the lender is not lending on both, just the one, that's what you're appraising.

 

[walt kirk]

Brad,
Was the lot marketed with the main parcel? In my area more than one lot may be sold on the same deed and taxed on the same bill while retaining individual lot and block numbers, very confusing. If the lots are being purchased I would list all parcel numbers and perhaps include a copy of the survey.

 

[wyecoyote]

Brad,

We get multi parcel purchases here often. You might want to check the legal description and zoning information for your are and the parcels. I have run into on more than one occassion something like this in the legal "lot a, b & c seperated for tax purposes only must be transfered with additional lots". Then some of the zoning authorities state that if two properties have been under the same ownership since 1970's and utilized as one lot then they must be sold together or re subdivided.

Lee Ann's statement of a hypothetical condition may also be appropriate. Explain the fully what you are doing and that the value of the whole may not be the value of the property as seperate asembalage.

Ryan