One Appraisal/two Parcels

[Randy Beigh]

Charles,

You have received some good advice, relative to the subject of H&BU, but there is something missing here. Assuming the client is not asking you to do anything illegal/unethical, etc, they are the boss. What do they want? Are they encumbering the whole or just the one site? If their loan is on the whole, then it seem appropriate, all other things being equal, that appraising the whole would help them make their business decision, while half would not help them in the least.

 

[CANative]

What's the best way to appraise multiple lots when HBU is different between them?

If the lender encumbers both and the borrower defaults, he has to (presumably) sell both. One is a house on 3.5 acres and the other is an unimproved 3.5 acres. Different marketing techniques and differing exposures times (typically)

etc.

 

[Lee Lansford]

Randy,

re: your immediate prior post...

The problem with the assignment is not that the appraiser can not include both parcels in a single appraisal, but whether the appraiser is to ignore (my choice of word based upon my understanding of the situation) that the 2nd (vacant) parcel has its own separate H&B Use.

If the appraiser develops and communicates the appraisal as though the 2nd parcel is SURPLUS LAND (see definition in one of my earlier posts in this string) when in fact (note: again, my understanding of the situation) it is EXCESS LAND (and, again, by way of "hiding" or "ignoring" what is known), then the appraiser would be communicating a misleading appraisal.


Lee

 

[Randy Beigh]

Lee,

My very first sentence was dealing with what all of you had already dealt with, H&BU, so I agree that that subject has to be settled first. The rest of my post dealt with if H&BU is the whole.

But, the one thing that did get my attention was the lender has already made a loan as combined.

they have sent me a copy of the original 2055 which was used when the property(S) were purchased. The other appraiser has combined both parcel of land.

That would imply, they have a title report, etc showing the whole and I assume the legalities of the whole versus half have already been dealt with by all parties, including the former appraiser.

For Charles, if I were the appraiser, I would call the local zoning folks and ask them about legalities, zoning, if both lots are buildable,etc. That way, he can put this problem to bed.