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SFR On Two Contiguous Lots With Identical Ownership ?

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ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
The subject of the assignment is a SFR with an address that corresponds to one of two contiguous, parallel lots owned by the same individual.

An interview with the local jurisdictional authority revealed that the current status is considered as non-conforming because the SFR is improved on both of the lots, with a lot line that splits the SFR.

My 1st thought was that market reaction would be $000.00 because the property can't be sold because the SFR is on another lot as well . . . or the report might be created subject to a realignment of the lot line . . . or contingent upon a hypothetical condition that the improvements are located on a single lot, which would have been addressed as an inherent limiting condition if due diligence had not revealed the issue . . . or would the subject of the assignment need to be comprised of both lots . . . etc.

(Other than to note that the assignment is not for a federally funded transaction, and that the client will be notified ASAP, what alternatives would the learned Forum suggest?)
 

Sid Holderly

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Jun 16, 2005
Professional Status
Certified Residential Appraiser
State
Indiana
In this area around the lakes there are many homes on more than one lot, some I have worked on have been up to 7 lots (area originally designed for SW trailers) In most cases their taxes would be less if they joined the lots. Many deeds have more than one parcel number. Often the o9mprovemetns are only listed on one of the parcels even though they area spread out across more than one. If it sold how would it sell? & What is included in the current or past mortgages. The descriptions just take more time and explanation so the reviewer/underwriter does not ask for pages of more explanation.

The normal encounters of a rural/small town appraiser span a much wider gamut than those found by a city appraiser. The majority of my appraisal are oddball in some way or another. Local banks understand AMC's do not.
 

J Grant

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Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
?? OP why the pretzel twisting about it can't be sold or subject to a realignment etc....what is a "local jurisdictional authority?" The zoning dept? ...if its a zoning dept they usually say zoning is legal or illegal (or non conforming grandfathered in still legal) This does not sound like non conforming use, it is simply a house built on two lots.

It's a SFR on two adjoining lots with the structure straddling both lots (per your description ), neither lot could be sold separately unless house is torn down, and if house still contributes to value HBU would not to tear it down, (simplification ), thus pretty straightforward, a SFR on a very large parcel consisting of two lots.

One would need to see market reaction if there is a premium for subject having an extra large lot. ( surplus land value)
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
Your response appears to reflect a scenario identical to the topic of the thread, which to a large extent implies that one would simply describe the scenario, include a description of the multiple lots involved, indicate that it is relatively typical for the local market, and defer the lending decision to the institutional client?

If so, do you include the value of market reaction to the enlarged lot size, impose an Extraordinary Assumption that the property can transfer in the open market despite the involvement of multiple lots, address the surplus-excess land dichotomy, etc.?

That is to say, your advice is sage and greatly appreciated, although it leads to further unknowns . . . and the "lack of geo competency" cascade follows.

Nevertheless, thanks sincerely.
 

J Grant

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Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
"ZZGAMAZZ, post: 2753157, member: 108038"]Your response appears to reflect a scenario identical to the topic of the thread, which to a large extent implies that one would simply describe the scenario, include a description of the multiple lots involved, indicate that it is relatively typical for the local market, and defer the lending decision to the institutional client?

Appraisers don't make lending decisions, that is up to the client. But we are engaged by the client to make value decisions...aka provide a market value opinion on the subject property as well as analysis and other information about the property and market to enable the client to make a lending decision. The client has to be able to rely on our report enough for them to make an informed decision.

If so, do you include the value of market reaction to the enlarged lot size, impose an Extraordinary Assumption that the property can transfer in the open market despite the involvement of multiple lots, address the surplus-excess land dichotomy, etc.?

That is to say, your advice is sage and greatly appreciated, although it leads to further unknowns . . . and the "lack of geo competency" cascade follows.

Sorry but you sound lost about how to approach this, to extent that imo it is not a matter of geo competency, but of inexperience/competency to understand the issues as they pertain to this property/assignment.

It could be a learning opportunity if you could partner with a more experienced appraiser on it.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
JGrant, "local jurisdictional authority" is indeed the City Planning counter, and the phrase was hijacked from a post by Mike Kennedy a few years ago, with attribution to the source implied.

The two responses I have received differ substantially. What is the typical source for appraisal methodology based upon common law precedent--I forget, it doesn't exist.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
See if other responses you get provide enough guidance.

I am not trying to be mean, but part of being a professional is knowing when we are in over our head and can not do a good job for our client...I bet every appraiser here has withdrawn from assignments or partnered with someone for that reason. Appraisers can ask a question here if they are stumped by an aspect but their type of question ( and how they respond to answers) indicates if they are overall competent for an order and just stumped on an issue or totally lost...

.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
I'm reminded of a comment my mentor made a decade ago when I first became aware of the term "complex" as it pertains to appraisals. He said "You can't simply define an assignment as 'complex' because you don't understand it." How true.
 

ZZGAMAZZ

Senior Member
Joined
Jul 23, 2007
Professional Status
Certified Residential Appraiser
State
California
You are, however, inherently "mean" despite the disclaimer. Everybody knows. It pertains to the way you wear your intelligence, like an expensive suit with the tag never removed. We all have character flaws, however. I started to list mine but the post was truncated.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
Fine, I'm mean. But I was being truthful on this...I do go out of my way to help people here on issues /questions and don't often simply call it a matter of competence (for that assignment). I have my share of character flaws, and I may be intelligent in certain aspects but have made some whopper stupid decisions in my life..wish I had asked for advice (or heeded it when it was given ...the hardest thing to do sometimes)
 
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