Not sure about a revision request

[Tom D]

Well, now you know to have called the lender first if there were several parcels on 1 deed. 10 separate deeds, or 10 parcels on 1 deed is only a concern to lender who make it a concern to the appraiser.
If you subscribed to fannie mae appraisers news letters you would have read about how fannie handles that. I assume you don't subscribe to fannie appraiser news letter. Knowing how fannie and FHA would handle this you wouldn't have done it without talking to the lender. Your assumption of mistake.

 

[KHS445]

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.

I believe the important part of the above Site Analysis statement is the word "HYPOTHETICAL". If the appraiser states that the subject property included in their appraisal is a portion of a larger parcel, then I believe there is an issue.

However, if the property that is to be included in the appraisal is surveyed and then the appraiser only values the surveyed property and any related improvements, there should not be a problem. Having the exact legal description, per the survey, eliminates the "HYPOTHETICAL" from the Site Analysis statement.

Quite frankly, how is this any different than the owner of the entire parcel deeding themselves a portion of the entire parcel change anything? Besides in order to prepare a deed for such a convoluted transaction would require obtaining a survey showing the legal description of that portion of the property that is to be included in the appraisal.

Sounds like all that needs to be done is for a survey covering that portion of the property to be appraised is completed, and then the appraiser can amend their report to include the newly surveyed legal description, adjust the value if necessary, and remove all comments about the additional acreage. This is an issue the landowner and the lender need to figure out

 

[J Grant]

sorry just logging on again

perhaps a box does not have to be checked since this is title/legal related and not the physical component of a the improvement - ask the client if they just want a comment that the appraisal is subject to each parcel put on its own deed and that a subject to box does not have to be checked.

If one has to be checked, pick one and explain, however client may just need a comments

 

[J Grant]

I believe the important part of the above Site Analysis statement is the word "HYPOTHETICAL". If the appraiser states that the subject property included in their appraisal is a portion of a larger parcel, then I believe there is an issue.

However, if the property that is to be included in the appraisal is surveyed and then the appraiser only values the surveyed property and any related improvements, there should not be a problem. Having the exact legal description, per the survey, eliminates the "HYPOTHETICAL" from the Site Analysis statement.

Quite frankly, how is this any different than the owner of the entire parcel deeding themselves a portion of the entire parcel change anything? Besides in order to prepare a deed for such a convoluted transaction would require obtaining a survey showing the legal description of that portion of the property that is to be included in the appraisal.

Sounds like all that needs to be done is for a survey covering that portion of the property to be appraised is completed, and then the appraiser can amend their report to include the newly surveyed legal description, adjust the value if necessary, and remove all comments about the additional acreage. This is an issue the landowner and the lender need to figure out

Unless I misunderstood what the OP said, the OP only appraised the one-acre lot plus the house anyway.

Now the client is actually making it easier for the appraiser by separating the excess lot onto a separate deed.

Your solution is the reverse: over-complicated, needing a survey and an HC - but the lender for the GSE will not accept an HC other than the pre-printed ones on the form.

 

[J Grant]

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

That is correct (per the OP ), in which case all the appraiser needs to do is say the appraisal is subject to putting the excess parcel on a spare deed.

The client is actually saving the appraiser's azz by doing this, considering the way the appraisal was done, though the OP does not seem to realize this.

 

[BRCJR]

Simply, this is an attorney issue. The OP appraised the dwelling and parcel it is situated upon (assumption the LOE only requested such).

The deed and legal description of the collateral is all the lender should be concerned with for the "new" loan. There should be two parcels (Exhibit A and Exhibit B) in the existing deed. The original deed is amended to be less the Exhibit X. The "second" (amended) deed can be drawn up without any appraisal related issues.

Now, if both parcels are encumbered by a lien, a release of Exhibit X will need to be executed.

 

[Tim Hicks (Texas)]

That is correct (per the OP ), in which case all the appraiser needs to do is say the appraisal is subject to putting the excess parcel on a spare deed.

The client is actually saving the appraiser's azz by doing this, considering the way the appraisal was done, though the OP does not seem to realize this.

It is a little more complicated than that. It can be done with a hypothetical condition of the house and one acre separated from the rest of the property, but you would also need to have proof of deeded access to the house and one acre if not on road frontage. The lender should have spelled out what they needed to the appraiser as part of their scope of work. The appraiser should never just assume that two parcels mean separate deeds here in Texas. These house and one acre parcels usually have nothing to do with what is deeded or to be deeded. I have done many property appraisals where there is a hypothetical condition for the house and one to ten acres to be separated and been provided the survey that will be presented to the lender.

Typically, they had a low loan amount or the market appreciation over the years has made it feasible for the house and smaller acreage to be worth enough to cover the original loan balance. The owners notice this and decide it is time to subdivide and sell, free up excess land in case of bad times so they will not lose the entire property or gift (or sell) some of the land to relatives. There are other reasons, but these are the most typical.

You city appraisers have it easy!

 

[Larry Phillips]

The lender has made a revision request that the appraisal be made subject to each parcel being on its own deed.

The lender is requesting checing a different box on the report; 'subject to' ... or alteration .... fits the form and meets lender request with no big deal. I suggest inserting a comment explaining the change, dating that comment, updating signature date, and move on.

 

[J Grant]

It is a little more complicated than that. It can be done with a hypothetical condition of the house and one acre separated from the rest of the property, but you would also need to have proof of deeded access to the house and one acre if not on road frontage. The lender should have spelled out what they needed to the appraiser as part of their scope of work. The appraiser should never just assume that two parcels mean separate deeds here in Texas. These house and one acre parcels usually have nothing to do with what is deeded or to be deeded. I have done many property appraisals where there is a hypothetical condition for the house and one to ten acres to be separated and been provided the survey that will be presented to the lender.

Typically, they had a low loan amount or the market appreciation over the years has made it feasible for the house and smaller acreage to be worth enough to cover the original loan balance. The owners notice this and decide it is time to subdivide and sell, free up excess land in case of bad times so they will not lose the entire property or gift (or sell) some of the land to relatives. There are other reasons, but these are the most typical.

You city appraisers have it easy!

!

This incorrectly making something more complicated for no good reason is part of why lenders are trying to get away from using appraisals.


The appraisers have ALREADY appraised a segment of the property, taking it upon themselves to do so ; ( they appraised the house on one acre and acted like the other excess lot does not exist, - ). The fact that lots are on one deed is neither here not there - you are correct in that it is about identification of what is to be appraised - ( a second excess lot is or is not included in the value)

Being that it is what it is, an appraisal where the OP has appraised a house on one acre only, the client asking that the appraisal be made subject to the excess lot put on a separate deed, is a save for the appraiser at this point, imo.

 

[BRCJR]

!

This incorrectly making something more complicated for no good reason is part of why lenders are trying to get away from using appraisals.


The appraisers have ALREADY appraised a segment of the property, taking it upon themselves to do so ; ( they appraised the house on one acre and acted like the other excess lot does not exist, - ). The fact that lots are on one deed is neither here not there - you are correct in that it is about identification of what is to be appraised - ( a second excess lot is or is not included in the value)

Being that it is what it is, an appraisal where the OP has appraised a house on one acre only, the client asking that the appraisal be made subject to the excess lot put on a separate deed, is a save for the appraiser at this point, imo.

You have misunderstood the problem to be solved, it appears. There was no segment of anything appraised. It is two separate parcels. It is not excess acreage, it is an EXTRA/ADDITIONAL lot, it is a standalone lot.

Too bad you have me on ignore, as bad as you do not want to admit it, I do have the ability to positively contribute every once in a while.