Not sure about a revision request

[J Grant]

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.

Do you want to lose a good client over this??

Your appraisal was not "wrong", but the way it is , your client can not make the loan, per their UW or whatever internal reasons they have.

You have a good chance of losing them over this if you say no. It is not like they are asking you to change a value or fudge a condition or some other bad thing.

They simply want to be able to make a loan. How hard is that to understand?

Losing a bad client is no loss, but if it this is a good one, ask yourself what saying no is on your part might result in and is it worth it.

 

[JLR]

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.

I started to do this and wasn't sure which box which is why I stopped and posted here. It just didn't seem to fit which made me think maybe it shouldn't be done. Subject to completion..., Subject to following repairs or alterations..., or Subject to following inspection? It's none of those.

 

[shrubberyvaluation]

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.

If its market value it needs to be highest and best use.

 

[JLR]

If its market value it needs to be highest and best use.

You're right. It is marked highest and best use.

 

[TerryRohrer]

An appraiser does not prepare loan docs. A lender too stupid to prepare a deed that only includes their collateral really is not fit to be in business. Even if an appraiser makes their report subject to something not a part of their appraisal, the lender still has to do their job. The only relevant deed is the one the lender will prepare to secured their own loan. Next you will be advised to make your appraisal subject to the borrower signing all the loan docs.

 

[Fernando]

One time I was looking to buy this house and the adjacent vacant parcel was optional to buy by same seller. A good discount could have gotten it and made the two lot larger into one.
Eventually, I didn't buy it.
Years later, the vacant parcel was developed into a new home. The profit if I had bought it.

 

[Tim Hicks (Texas)]

In Texas, it is possible to have two parcel numbers for one property in order for the owner to apply for a homestead exemption when the home is situated on multiple acres. This is typically the house and one acre. They will have two parcels (house and one acre with homestead exemption, additional acreage on the other parcel with ag exemption). It is quite possible that the deed is actually for the entire property and the homestead exemption parcel is just for the tax office to give a homestead exemption to the homeowner. They are deeded together and can only be sold separately if the additional acreage is separated by a survey and accepted by the county. Many times, the house and one acre is in the middle of the large tract of land and there is no ingress/egress easement road access to the house and one acre because it is technically a house and xx acres and is not meant to be separated. Now, it is possible that the excess land could be separated out and sold separately, but that is not how it is deeded. Also, they would probably have to deed an ingress/egress easement to the house and one acre for access if sold separately. This can be done, but at quite an expense. I cannot see this property and how it is deeded, but it is probably more of a surplus land than excess land due to the access to the house and one acre. I rarely see it where the house and one acre is on road frontage, but it does happen. Here is how they look on the cad maps. I just opened up the interactive map and zoomed into an area and these type properties are all over the place. The yellow sections are the house and one acre homestead exemption parcels on much larger tracts. They show no deed road access. You can see other flag lots where the road access is deeded in other properties.

 

[Tim Hicks (Texas)]

Also, from the Fannie Mae Selling Guide:

Site Analysis The appraisal must include the actual size of the site and not a hypothetical portion of the site for the subject property. For example, the appraiser may not appraise only 5 acres of an unsubdivided 40–acre parcel. The appraised value must reflect the entire 40–acre parcel.

That is why it is important in Texas to ask how the property is deeded. If they are already separated on the deed, you can appraise the house and whatever is deeded. If not, you must appraise the entire property. The HBU in these very rural areas is "present use" because there are many hoops to jump through to change the HBU for the entire property. There is not much need on these obscure county roads for anything other than residential and ag use. If there is no zoning, which is in most areas around here, you could put a mechanics garage, hair salon, horse property, storage facility, RV park, etc. Or just live on it.

 

[Surf Cat]

If they are already separated on the deed, you can appraise the house and whatever is deeded. If not, you must appraise the entire property.

From how I'm interpreting the op, it sounds as if both Parcels are on one deed and not separate. I may be wrong...

 

[Dublin ohio]

Did you discuss the second parcel in your report?