Second Lot on VA Purchase

[Zoe]

Can't escape H&B use analysis definition in market value opinion. Need to study

That is the appraisers fault for incorrectly checking NO on the box !! Since the purpose of the appraisal is NOT to appraise the excess lot alone . The NO answer addresses the HBU of the vacant site only.

The purpose of appraisal MVO of s the package of dwelling along with the adjacent lot, and as long as the dwelling contributes enough to the sites the HBU for the package is existing as is, note the contributing HBU of the excess lot functions as a value in use as long as encumbered by one mortgage.

Can't mix value in use and market value. Different value definitions.

 

[Zoe]

Value in use requires no H&B use analysis.

 

[Zoe]

H&B use addresses both vacant and improved when done correctly. It don't address vacant site only. What are you smoking?

 

[Zoe]

maximally productive is in H&B use, which is tied to Market value opinion. They are like two peas in a pod. They are like conjoined twins. There is no separation.

 

[Ariba]

Does the VA cover vacant land? I don't think so.

 

[CindyR]

The confusion ( see marathon former thread lol ), confusion seems to be appraisers believe their assignment means appraise the vacant lot AND appraise the house and its site, and if the vacant lot can have an alternate HBU or be worth more sols separate OMG- down the rabbit hole they go. While one can, and might be due diligence to, develop an opinion of value for the escess lot, that is NOT the assignment. The assignment is develop an opinion of value for the two properties sold /conveyed as one package/assemblage ( and financed under one mortgage. ) Thus, the question becomes for HBU, as improved, does the dwelling contribute enough to the sites to be retained, aka an as is rather than demolish the dwelling and both sites /lots worth more as vacant.

In theory, if the same size, the lot of subject dwelling should be worth the same $ as vacant as the excess lot. But as a package, the contributory value of the excess lot might be less than if vacant. Which can be explained in the report as part of the analysis. That does not change the HBU of the whole property, which is the existing dwelling contributes to the sites, the second parcel does not become surplus land, it remains an excess lot parcel but serves a value in use while encumbered under one mortgage . ( value in use can be as , extra land for privacy or build amenities on or hold for investment purpose )

good grief this has gotten interesting. just to clarify it is a plain old residential lot next to a plain old residential lot. no commercial for miles around.

but about that marathon thread, can you post a link. although i remember it i still haven't found it.

 

[J Grant]

good grief this has gotten interesting. just to clarify it is a plain old residential lot next to a plain old residential lot. no commercial for miles around.

but about that marathon thread, can you post a link. although i remember it i still haven't found it.

I don;t have a link to it.. it was traumatizing because a few people (one who no longer posts ) got extremely nasty.

I suggest you look up the fannie guideline on how to treat it and check with your VA coordinator or client.

Just remember, the purpose of the assignment is a MVO of the house sold with the lot, the purpose is not to appraise the vacant lot, therefore the HBU question they are asking on page one would apply to the property that is the subject of the appraisal, which is the house sold with the lot.

 

[Zoe]

I don;t have a link to it.. it was traumatizing because a few people (one who no longer posts ) got extremely nasty.

I suggest you look up the fannie guideline on how to treat it and check with your VA coordinator or client.

Just remember, the purpose of the assignment is a MVO of the house sold with the lot, the purpose is not to appraise the vacant lot, therefore the HBU question they are asking on page one would apply to the property that is the subject of the appraisal, which is the house sold with the lot.

No. Read maximally productive and tell me how you get around that. You could get burned bad on market value opinion. I mean bad. I have provided examples.

 

[Zoe]

The one I just did had a highest and best use of being sold separate. I guarantee you. Being very specific in H&B use is very important. Market value is only definition where it is so important. It's like a sheild for an appraiser.

 

[J Grant]

The one I just did had a highest and best use of being sold separate. I guarantee you.

If your assignment was to appraise the vacant lot as a stand alone lot, fine... It's HBU is sold separate.

But the vacant lot alone was NOT the subject of the assignment, was it? What was the property that was the subject of the assignment ?