Not sure about a revision request

[JLR]

Highlighted is the appraised parcel. 68465 is the second parcel. It has road frontage. On the CAD it has a separate address but CAD doesn't know where that address came from. There is no driveway from the road and they didn't find that there was a residence there in the past. The address of the larger parcel, without the house, is the address that has always been used but the address of the house and 1 acre is the official 911 address. I was provided a warranty deed that shows Exhibit A to be the one acre parcel. The title commitment also shows the one acre as Exhibit A and is what
they are insuring. I read that the Fannie Mae Selling Guide where it says a hypothetical portion of the property could not be used. My question is now, is a separate parcel a hypothetical portion, regardless of the deed?

 

[BRCJR]

View attachment 94540
Highlighted is the appraised parcel. 68465 is the second parcel. It has road frontage. On the CAD it has a separate address but CAD doesn't know where that address came from. There is no driveway from the road and they didn't find that there was a residence there in the past. The address of the larger parcel, without the house, is the address that has always been used but the address of the house and 1 acre is the official 911 address. I was provided a warranty deed that shows Exhibit A to be the one acre parcel. The title commitment also shows the one acre as Exhibit A and is what
they are insuring. I read that the Fannie Mae Selling Guide where it says a hypothetical portion of the property could not be used. My question is now, is a separate parcel a hypothetical portion, regardless of the deed?

You have appraised the whole of the 12671 parcel. Nothing hypo about what you have done, period.

 

[Dublin ohio]

My question is now, is a separate parcel a hypothetical portion, regardless of the deed?

Does each parcel have it's own PID. If so they are nothing more than 2 separate individual parcels. Like others have said you can put multiple individual properties on a deed. That does not make them one property

 

[Doug Bennett]

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.

Based on your recounting of the Lender's request, it seems clear to me that your assessment is spot on, correct and appropriate. In training/supervising more than a few Trainees, there comes a point when I see it's appropriate to remind them that they are the ones whose opinion is the one that matters and not the Lenders or the AMCs. One needs to recognize that were an appraisal to come before a regulating body such as the state, you and only you are legally responsible for defending your conclusion/valuation and no one else. Again, from the facts presented, your initial assessment is correct, that is the "answer" to the HBU question is correct. If the Lender insists on including the second 13 acre parcel being included in the valuation, then "No" to the HBU question is correct. Stand your ground and do not allow them to brow-beat you into agreeing to something you believe is wrong. Do not let the tail wag the dog.

 

[Dublin ohio]

Why would the lender make the request unless the second parcel was discussed in the report. That is what doesn't make sense.

 

[Overimprovement]

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.

I was asking because of your statement: "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."

 

[KHS445]

First off everyone talking about needing a separate deed is absolutely incorrect. The deed only reflects ownership and can encompass as much or as little property as the parties agree to. The lender is recording a mortgage, which contains the legal description of the property being used as collateral for their loan. It makes no difference if the person owns the entire State of Texas, if all they are pledging for the loan is the one-acre parcel where their house is located, that is all the lender needs to worry about. Once the description for the one-acre is identified, the legal description in the appraisal is adjusted, any comments regarding the non-included acreage, and any adjustments in the sales grid are completed, the "Hypothetical" mentioned in the guidelines goes away.

Now it appears the property has road frontage, and I would check to make sure the size of the lot and the amount of road frontage is adequate per local zoning. If it is go with it, if not mention it in your report, or let the lender know immediately, that the proposed legal description does not include adequate square footage and/or adequate road frontage. As far as access coming across their adjoining property, that is an underwriting issue, and the lender can request that a permanent easement for ingress and egress is provided and make sure the easement runs with the land. I would also make sure that the width of the easement meets local zoning. Some areas require a minimum width and a possible turn around area for emergency equipment.

 

[JLR]

Does each parcel have it's own PID. If so they are nothing more than 2 separate individual parcels. Like others have said you can put multiple individual properties on a deed. That does not make them one property

I don't see separate PIDs but each parcel has a different Owner ID. The house and one acre says the owner name is the husband and wife. The 13.279 parcel says the owner name is the husband only. They were recorded one week apart.

 

[JLR]

I was asking because of your statement: "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."

Right, I don't know why she said that either. I'm wondering if she read the report or was going by what someone told her.

 

[Dublin ohio]

I don't see separate PIDs but each parcel has a different Owner ID. The house and one acre says the owner name is the husband and wife. The 13.279 parcel says the owner name is the husband only. They were recorded one week apart.

I am not sure what they call them in Texas. But around here separate parcels will have their own unique parcel number. Are they taxed separately