Residential Certified Appraiser inspecting rural agricultural property

[swaprzl1]

Work with VA, who hardly ever allows you to decline an order. Assigned two properties in Graham county, one a manufactured home on 12 acres with wheat growing behind (owner stated it is for personal use for horses and animals). The other a SFR on 12 acres with about 350+ pecan trees, which are income producing. I have requested it be assigned to a general appraiser as we would most likely have to note highest and best use as agricultural and not residential, but they keep saying we have to do it and just note that we are not counting any of the income producing properties of the lots. Is that allowed, seems a little sketchy? Is there something in print that I can send them that says we can't do this or is it okay as long as we note throughout that the income is not being included in the report.? Any help would be appreciated.

 

[swaprzl1]

Work with VA, who hardly ever allows you to decline an order. Assigned two properties in Graham county, one a manufactured home on 12 acres with wheat growing behind (owner stated it is for personal use for horses and animals). The other a SFR on 12 acres with about 350+ pecan trees, which are income producing. I have requested it be assigned to a general appraiser as we would most likely have to note highest and best use as agricultural and not residential, but they keep saying we have to do it and just note that we are not counting any of the income producing properties of the lots. Is that allowed, seems a little sketchy? Is there something in print that I can send them that says we can't do this or is it okay as long as we note throughout that the income is not being included in the report.? Any help would be appreciated.

Per current owners, it will not be used as income producing once purchased by buyers.

 

[Rlong]

You simply are not competent YET for these; should seek a (local) peer for help or MUST decline per USPAP. Forage for (pet/hobbie) animals is not a agricultural business enterprise (keeping horses is generally a big money looser after food, vet etc. Pecan farm.. I am not competent at either! : )
Bob in CO

 

[Alsie35]

This is what sucks about VA assignments. Once in a while you get a real doozy. Its the luck of the draw. Good luck with it. Maybe you can suddenly come down with COVID and have to stay home for 3 weeks?

 

[swaprzl1]

This is what sucks about VA assignments. Once in a while you get a real doozy. Its the luck of the draw. Good luck with it. Maybe you can suddenly come down with COVID and have to stay home for 3 weeks?

Just weird to get two doozies in the same county at the same time. If I could just find something in print I can show them, it would help, but they make it really hard to decline orders.

 

[Terrel L. Shields]

Per current owners, it will not be used as income producing once purchased by buyers.

HBU issue. What is the HBU? Do you honestly think 12 acres of wheat can make a living? Now, here, a good pecan tree might produce $50 or so in pecans, but is the property valuable as a pecan farm or a SFR? I see no problem with doing them using small acreage rural residences as comps. As an ag appraiser, I assure you I'd do a cost approach and a sales approach and "income" would not come into the picture. It is a small amenity to the property, no different than renting out the ADU. I might rent it out, or I might not. I might want to plant trees on the wheat field, and the pecans? Yeah, you could sell them on the shares but otherwise, they are simply a lot of shade.

I would bet the land sold as a residential property will bring more than if the land had no house and was trying to sell based solely upon its income potential as "agri".

 

[swaprzl1]

As I stated earlier, they do not plan on using it as agricultural, and they definitely aren't making a killing on pecans. The issue is that highest and best use does not appear to be residential. The manufactured one is the only home for miles and miles and miles, in the middle of nothing but agricultural fields. It will most likely never be a residential neighborhood in my lifetime. It will definitely not hit the sales prices they are asking and both will need to be tidewatered. Will be interesting to see what they come up with. Thanks for your input.

 

[Hondo]

This is from 26-7 Chapter 11.

I would call it a "hobby farm" and move on, hopefully you have some comps with similar features.

Farm Residences​

Change Date

February 22, 2019 This Chapter has been revised in its entirety.

a. Farm Residence is an Eligible Property​

Although VA does not make farm or other business loans, Veterans may use their VA home loan benefit to purchase a property on which there is a farm residence.

b. No Limit on Number of Acres​

VA does not set a limit on the number of acres which the property may have. The appraisal of properties with acreage should not present difficulties if similar properties in the area were recently sold primarily for residential use.

c. Residential Purposes Considered in Valuation​

Improvements not typically considered residential, for example, barns, corrals, or stables, must be valued by the appraiser as they contribute to the market value of the property for residential purposes only. The appraiser must not include in value any livestock, crops, or farm equipment.

 

[swaprzl1]

Yes, I am saying, "Challenge Accepted". Thanks.

 

[Lee Lansford]

Work with VA, who hardly ever allows you to decline an order. Assigned two properties in Graham county, one a manufactured home on 12 acres with wheat growing behind (owner stated it is for personal use for horses and animals). The other a SFR on 12 acres with about 350+ pecan trees, which are income producing. I have requested it be assigned to a general appraiser as we would most likely have to note highest and best use as agricultural and not residential, but they keep saying we have to do it and just note that we are not counting any of the income producing properties of the lots. Is that allowed, seems a little sketchy? Is there something in print that I can send them that says we can't do this or is it okay as long as we note throughout that the income is not being included in the report.? Any help would be appreciated.

What would be the primary motivation of the typical buyer of either property? Residential or for the income that the property generates?