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

[J Grant]

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.

The owner's personal story does not matter, the fence does not matter, and what the owner wants does not matter.

Your lender client may or may not want to include the third lot with the metal building in the value since it is excess land, and the decision can depend on their loan program. Call the lender and ask or you might waste time and submit an appraisal they can not use and might need to do over.

When you say the house sits on ...does the house straddle two lots? Or is the footprint of the house only on one lot?

 

[sputnam]

The relevant question is.... What property does your Client want you to appraise? Remember appraisal work flow? It begins with 'Identify the problem.'

 

[togatour]

Three lots, three tax records. You say the house sits on two of the lots. Of the two lots that the house sits on, which tax record shows the improvements?? Also, does the tax record of the third lot show any assessments for the storage building. I am assuming the third lot with the storage building is not a buildable lot (which probably will show a much lower assessment value than the lot(s) with the home / building right. Make sure you have the full picture before you reach out to the lender otherwise so that you don't have to start over when they discover something you missed. If the third lot with the storage unit is truly surplus or excess land and on the same deed they will likely have you do it that way. However, if the third lot has a building right and can be sold separately from the lots on which the house sits than you could have 2 distinct appraisals, lot with improvements, second vacant lot which is buildable (although this is unlikely).

 

[J Grant]

Three lots, three tax records. You say the house sits on two of the lots. Of the two lots that the house sits on, which tax record shows the improvements?? Also, does the tax record of the third lot show any assessments for the storage building. I am assuming the third lot with the storage building is not a buildable lot (which probably will show a much lower assessment value than the lot(s) with the home / building right. Make sure you have the full picture before you reach out to the lender otherwise so that you don't have to start over when they discover something you missed. If the third lot with the storage unit is truly surplus or excess land and on the same deed they will likely have you do it that way. However, if the third lot has a building right and can be sold separately from the lots on which the house sits than you could have 2 distinct appraisals, lot with improvements, second vacant lot which is buildable (although this is unlikely).

Buildable lot is based on zoning, does the minimum size and zoning permit a dwelling on it or not, ( as well as is there road frontage/access)


Assessment is not the benchmark - the lot might be assessed lower if vacant or a low-value shed or metal building is on it rather than a dwelling which is assessed higher

The OP references the subject house is on 2 of the lots - not sure what that means if the house straddles the two lots - idk-

 

[togatour]

Buildable lot is based on zoning, does the minimum size and zoning permit a dwelling on it or not, ( as well as is there road frontage/access)


Assessment is not the benchmark - the lot might be assessed lower if vacant or a low-value shed or metal building is on it rather than a dwelling which is assessed higher

The OP references the subject house is on 2 of the lots - not sure what that means if the house straddles the two lots - idk-

No where did I imply Assessment was the benchmark. Neither is zoning for that matter.

In my market, an surplus lot like the one described would be assessed much lower than a vacant lot with a building right.

My post merely advised the OP to do the research before going back to the client to see how they wish to proceed. The client relies on the Appraiser to inform them of what is and is legally permissible, financially feasible , physically possible, maximally productive (OMG that is a highest and best use analysis) and covered in most engagement letters to be determined before proceeding.