Seperate Parcels, Not Contiguous

[froggy8]

I am working on an FHA refi appraisal that has 2 separate parcels on 1 deed. My dilemma is that the properties are not contiguous. There is a parcel in between them owned by a different person. I'm thinking that would mean they would need 2 different appraisals if they want both parcels included. Am I correct on this?

 

[Mark K]

What's your assignment? You can have multiple parcels on one deed; nothing says you have to appraise all of them. They can generally be split into separate deeds if desired.

If you appraise two non-contiguous parcels, each with its own H&BU, then two appraisals are probably necessary. They can be combined in one report but if in your shoes, I'd contact the client for further direction and clarification. Good chance that the client is unaware of the situation.

 

[Mr Rex]

If the 2 are not contiguous then the combined 2 are likely not eligible for FHA unless the 2nd lot is for septic field or some other required ancillary function. Stop and notify your client and/or call your HOC.

 

[Terrel L. Shields]

If the 2 are not contiguous then the combined 2 are likely not eligible for FHA

Exactly. Go back to the lender and FIND OUT WHAT THEY WANT. FHA will not accept the vacant lot.

 

[RSW]

What Rex and Terrel said...

 

[gregb]

Is one of the parcels unimproved land?

 

[froggy8]

Thank you for the responses. I thought I was on the right path but just wanted to make sure. One parcel is improved with a dwelling, garage & barn. The other is vacant land. I sent the AMC information about the two parcels so I am waiting for the reply to see how I should proceed.

 

[The Warrior Monk]

While this does not appear to the be the case with your assignment, there are instances where lots that do not abut each other are part of one property. This would be determined by reading the deed (and/or referenced documents; e.g., covenants, etc.).

 

[Michigan CG]

Thank you for the responses. I thought I was on the right path but just wanted to make sure. One parcel is improved with a dwelling, garage & barn. The other is vacant land. I sent the AMC information about the two parcels so I am waiting for the reply to see how I should proceed.

Make sure you CONSIDER what the AMC wants but don't necessarily DO what they want. You have two different Highest and Best Uses in this situation. I would be writing two separate reports if they want them both appraised.

One can have 100 parcels on one deed, doesn't mean they all should be appraised together.

 

[JTip]

Unity of use.

Not really applicable to FHA guidelines but something to argue with the AMC about.