Subject Sits on Two Lots with differ Tax IDs. There is a Third Lot as Well With its Own Tax ID.

[Mikeb225]

Preliminary research shows that there are three lots associated with the subject; each has its own tax number. The subject occupies two of the lots and the third (potentially excess) contains a metal building which has electric that is currently being used and two storage improvements. One storage encroaches on the lot that the house sits on; all add contributory value to the overall property. What is required of me or the homeowner to produce a creditable report?

 

[Terrel L. Shields]

Value all three lots as one economic unit. The lots are contiguous i am assuming. So what size are the combined lots and is that typical size in the market within reason. If so, normal. All 3 tax IDs should be reported and yeah, you might get a cheap shot stip from the UWs but that goes with the territory.

 

[Mikeb225]

Each lot is between 16k to 18k sf for a total of 1.19 ac. The individual lots are typical of the market, but the combined total is not.

 

[Terrel L. Shields]

Then the lot value is likely less than the unit value compared. Meaning you'll need to value the lots separately and adjust accordingly. If typical and comps are say 0.25 acres and $80k then this one is likely worth less than $320k per acre but more than 80k total. The surplus size is discounted accordingly. Just like GLA. You are adjusting the excess.

 

[J Grant]

Preliminary research shows that there are three lots associated with the subject; each has its own tax number. The subject occupies two of the lots and the third (potentially excess) contains a metal building which has electric that is currently being used and two storage improvements. One storage encroaches on the lot that the house sits on; all add contributory value to the overall property. What is required of me or the homeowner to produce a creditable report?

I would check with the client if they want the thrid lot included. Even if the metal building encoruchaes on it, the building could be moved or cut back if the value of the third lot is worth doing that and the third lot likely has a different HBU
what is the size of each lot?

 

[Tom D]

Lender is different appraisal than an owner requested appraisal. J Grant is right as to avoiding the headache by doing it right the 1st time, as per lender guidelines. If owner requested value, then i would take the time to explain to them any potential issue when they refi or sell.

 

[Mikeb225]

She inherited the house and lots from her grandfather. They are putting a mortgage on it. Property has not been appraised before. Lot sizes that the house sits on are 16,813 sf and 17,038 sf. The third with the metal building is 18,171 sf. All three lots are fenced in as one and has been that way since the home was built in 1952.

 

[Dublin ohio]

Since the metal building encroaches on one of the other two lots. You need to determine HBU of third lot to see if it is feasible to value it as excess w/the building . Which would involve a new survey if that is the way to go. But that would not exactly be an "as is" appraisal. I agree with Terrell value it as one economic unit. especially since there are improvements on all three lots that are not isolated

 

[Terrel L. Shields]

Unless going secondary market, the lender will want all 3 lots valued...and valued "as is."

 

[JTip]

What does the DEED say?