Old 3000+ SF Remodeled Home/43 acres

[Gayle Cumbus]

I recently appraised a home 3000+ S/F 4BR/3Baths/totally remodeled AND on 43 Acres. I basically gave the lender 2 appraisals in one, gridding land sales to prove the site to value ratio, then obtaining older comps. on such acreage - I was able to locate three, all spread apart of course. Took all day to do inspection, search comps. and take comp. photos, as well as to write it up.

Now, the lender emailed me back that she is requesting only 5 acres. I inquired which 5 acres she wanted me to appraise, and I would only do it subject to a survey, and she will have to pay a partial fee for another appraisal. She thinks I am being "catty", especially when I asked her Which 5 acres. This will be a whole other appraisal, all new comps. Am I wrong? :roll:

 

[Pamela Crowley (Florida)]

You are right! That partial fee should also be at least 3/4 of full fee. They just really do not get it. Maybe they think everything is right there in our computer and it would only take 5 minutes to do this 'little' change.
:twisted: :twisted: :twisted: They really tick me off when they think something like this is simple.

In fact, don't change your first report at all. Tell the lender that's a whole new appraisal and report. You'll discount it by $50.00 for her after she provides the specific legal description for the 5 acres that are to be included in the appraisal.

Ok, OK.... You can do the house & 5 acres IF: you fully explain just what part of the whole is being included and that it is a hypothetical condition. A copy of the plat would be very helpful and you could estimate and draw the hypothetical 5 acres on to the plat then put in the URAR that the appraisal report is void without the map showing the hypothetical 5 acres.

Their ignorance..... take a gulp, a big deep breath and teach them. 8)

 

[Mountain Man]

I have had the same thing in the past. Now days, when I find out that it is an unusual property, I ask the processor: Do you realize that this is on a large acreage tract and will NOT go Fannie Mae? Do you plan to do an in-house loan? If you want the whole 43 acres, the fee will be $zzz. This will include market sales, land sales and any other necessary supporting data. If you want the house and up to 5 acres the fee will be $zzz for a typical report. These are two different types of reports that require different sets of comps, and extensive data research.

That puts the processor on notice to check with the LO before proceeding with the order, and that there will be a full fee charged if they change their minds after the fact. Sounds too hard nosed? I don’t think so, I do not have time to make changes and re-write whole reports because of someone else’s error. Just say it nicely and smile when you explain it.

Mell.

 

[Jeff Horton]

I whole heartedly agree with you Mell. That is basically what I do now. Had to many that wanted me to cut down the tract size to 5 acres. I learned the hard to way on that. So know I let them know before I do anything!! Then once they tell me what to do and they want to change it it's going to cost them.

 

[wade3333]

My lenders will only accept 5 acres, all over that is considered excess land. So my appraisals is based on 5 acres with no value placed on excess. Sometimes the bank will have a survey and will lend money on the excess. Wade so ga

 

[Jo Ann Meyer Stratton]

Fannie Mae WILL mortgage a residential property on a large acreage. They do not have a required miniumum or maximum site area anywhere in any of their guidelines.

Section 403-Site Analysis--"The property site should be of a size, shape, and topography that is generally conforming and acceptable in the market area".

Section 402.01-Location--"We will purchase or securitize mortgages that are secured by residential properties in urban, suburban or rural areas".
"We do not purchase or securitize mortgages on agricultural-type properties (such as farms, orchards or ranches), on undeveloped land, or on land development-type properties".

The only "rule :wink: " that Fannie Mae has is EXPLAIN, EXPLAIN, EXPLAIN, and then explain some more! Every thing else is a guideline only.

Jo Ann, an appraiser in a county entirely zoned one residential unit per 36 acres. With homesites that are conforming and typical of the market area ranging from 4,000 square feet to over 100 acres, that are not an agricultural-type, do not have potential development, etc. And very long addendums filled with hypothetical conditons and extraordinary assumptions. Also does a lot of swearing at clients and underwriters from the "big city" that have not read or understand Fannie Mae guidelines (which are NOT rules).

 

[Richard Carlsen]

You are not wrong in that moving from 43 acres to considering only 5 acres means new comps, new analysis, new cost approach, etc. In essence, a new appraisal.

I ran into one of these two months ago where we started with 20 acres on a subject house and after I had finished the report, the lender came back and said they wanted me to consider only 5 acres. I told them it would require an update since the site size/value change was significant. I told them had to search for more relevant comps and do a new cost approach and possible supporting documentation. They balked at the $75 fee I quoted. The wife of the owner (a LO) got very nasty. I never did do it. I think they hired a whole new appraisal done.

The least they can do is tell you ahead of time what they want you to appraise.

Often I have 10-acre parcels where I am to consider only 5 acres and of course, they don't tell me which 5. I just state that the site considered is the front 5 acres of the property since this is where most of the value is in the 10-acre parcel.

 

[Ray Ohler]

Jo Ann hit the nail right square on the head. Guidelines are just that. GUIDELINES. Sometimes you can't stay within the guildelines. It's called a non-conforming loan. Non-conforming to "guidelines". NOT rules. Problem is, a lot of the mortgage service companies and mortgage brokers want to save up their percentage of non-conforming loans that they can place so they want to force you to MAKE the guidelines. Can't be done sometimes. Some of these companies sell off the loans to FNMA, some to "private investors" who want the option to sell off the paper down the line. The games that are played with points and yields have been going on for years. Everybody makes their "margin", that's why the mortgage business IS like the stock market these days. If your client sells the paper off and the loan goes south (I don't know why "they" use that term - sounds like the people located in the south may have grounds for a class-action to me - HOWEVER, people SOUTH of WHAT?), the end lender doesn't know you from ADAM (?). You may be looking at some liability for writing a "misleading" report if you don't cover all your bases. I know, I'm negative.