Not sure about a revision request

[JLR]

I completed an appraisal for a refinance for Newrez in October. There are 2 parcels that are contiguous that make up the total property. One parcel is the house and one acre and the second parcel is 13.279 acres with a barn and is considered excess land. It is buildable and has road frontage and it is not part of the appraisal. Only the parcel with the house and one acre was appraised. The lender has made a revision request that the appraisal be made subject to each parcel being on its own deed. I asked why and the CRT Risk Manager, who is an appraiser, said they can't sell it to the GSE's "because they don’t buy property with multiple parcels where the highest and best use is no." I called Fannie Mae and was told to submit a question form, which I did today. I've asked 3 experienced appraisers in my area as well as a loan officer at the local bank. All four said they have not heard of this stipulation. The loan officer stated that he has made loans like this without the parcels being deeded separately. Has anyone run into this? Is she correct? Do they have to be deeded separately? I'm not trying to be difficult but I want the appraisal to be accurate. If I should revise it, based on Fannie Mae guidelines, I will. If I shouldn't, I would like to be able to tell the lender why. I'm sorry to ramble. Thank you all for your time.

 

[TerryRohrer]

They are two distinct tracts, each with it's own legal description. There can be 1 to hundreds+ tracts on a single deed and that does not vacate the subdivision(s) that created each tract. They don't know what they are talking about. There is nothing for you to do as you are not the recorded. I would decline and let them work through doing their own jobs.

Edit: Why is highest and best use "no." If you only appraised one tract, why is its HBU not its current use?

 

[Overimprovement]

In your report, do state property is not at its HABU? Why are they making that statement?

 

[JLR]

They are two distinct tracts, each with it's own legal description. There can be 1 to hundreds+ tracts on a single deed and that does not vacate the subdivision(s) that created each tract. They don't know what they are talking about. There is nothing for you to do as you are not the recorded. I would decline and let them work through doing their own jobs.

Edit: Why is highest and best use "no." If you only appraised one tract, why is its HBU not its current use?

Thank you for your response. The HBU is its current use.

 

[JLR]

In your report, do state property is not at its HABU? Why are they making that statement?

I wondered the same thing and worried I might have checked NO accidentally. I marked YES for the HABU and have the HABU statement in the comments.

 

[TerryRohrer]

Then you have it right. Nothing for you to revise.

 

[JLR]

Thank you.

 

[J Grant]

I completed an appraisal for a refinance for Newrez in October. There are 2 parcels that are contiguous that make up the total property. One parcel is the house and one acre and the second parcel is 13.279 acres with a barn and is considered excess land. It is buildable and has road frontage and it is not part of the appraisal. Only the parcel with the house and one acre was appraised. The lender has made a revision request that the appraisal be made subject to each parcel being on its own deed. I asked why and the CRT Risk Manager, who is an appraiser, said they can't sell it to the GSE's "because they don’t buy property with multiple parcels where the highest and best use is no." I called Fannie Mae and was told to submit a question form, which I did today. I've asked 3 experienced appraisers in my area as well as a loan officer at the local bank. All four said they have not heard of this stipulation. The loan officer stated that he has made loans like this without the parcels being deeded separately. Has anyone run into this? Is she correct? Do they have to be deeded separately? I'm not trying to be difficult but I want the appraisal to be accurate. If I should revise it, based on Fannie Mae guidelines, I will. If I shouldn't, I would like to be able to tell the lender why. I'm sorry to ramble. Thank you all for your time.

Imo you are better protected doing what the client wants - make the appraisal subject to each parcel being on one deed, - assuming my understanding of your post is correct, as you state above, you only included the house on the one acre in your appraisal, and you excluded the 13,279 sf lot with a barn from your appraisal.

If that is the case, you appraised a one acre lot with a house and nothing else, then why do you care if the other parcel is on a separate deed? It makes it cleaner for you imo.

It is not always a matter of whether it HAS to be this or that per some guildie; if your lender client wants it on separate deeds to make the loan, why are you setting up a roadblock? The owner of the popery will still own both parcels, except they will be on 2 deeds rather than on one deed.

 

[JLR]

Imo you are better protected doing what the client wants - make the appraisal subject to each parcel being on one deed, - assuming my understanding of your post is correct, as you state above, you only included the house on the one acre in your appraisal, and you excluded the 13,279 sf lot with a barn from your appraisal.

If that is the case, you appraised a one acre lot with a house and nothing else, then why do you care if the other parcel is on a separate deed? It makes it cleaner for you imo.

It is not always a matter of whether it HAS to be this or that per some guildie; if your lender client wants it on separate deeds to make the loan, why are you setting up a roadblock? The owner of the popery will still own both parcels, except they will be on 2 deeds rather than on one deed.

Thank you for your time and your response, I really do appreciate it. I'm having a hard time with the issue of changing an appraisal that isn't wrong, just because the lender wants me to, or because they don't understand what is, or isn't, required of them.

 

[J Grant]

All you need to do is write "revision and the date" on an addendum. Per the client's request, the appraisal is made subject to each parcel on a separate deed.

Mark the subject to the box and stipulate it there as well.