Three values, one report

[Ollie]

I did two reports for a house that is sub diving the lot. One with the house and current lot and one with the house after the lot would be sub divided. They are now saying they need the value of the house with current lot, the house once the lot has been sub divided and the value of the land. The problem is they are saying all values must be provided on one report. Is this possible? Any recommendations? Thanks

 

[George Hatch]

Can do. Pick the primary valuation scenario for the form, develop the other valuation scenarios in an addendum and restate those additional conclusions in the Reconciliation field on the main form.

That's not the only way to do this, but it is one way.

 

[JTip]

It's called a partial release.

Before: House and full lot
After: House and remaining lot, plus value of the remnant lot

Three appraisals all on one report with a big ol' fee that you can take next week off with.

 

[J Grant]

I did two reports for a house that is sub diving the lot. One with the house and current lot and one with the house after the lot would be sub divided. They are now saying they need the value of the house with current lot, the house once the lot has been sub divided and the value of the land. The problem is they are saying all values must be provided on one report. Is this possible? Any recommendations? Thanks

Yes you can have all the values on one report

Did you follow the advice here of some who always say one must have two appraisals in situations like this?

 

[George Hatch]

It's simpler for all involved to do separate reports when what you start with is different than what you end with. Especially when there's a potential for partial release in the mix. But some clients are not that savvy about appraisals and can't foresee how difficult it will be for them to keep everything straight in the same report.

These are issues to clarify at the outset. If they want it one way or another then that's how the appraiser should proceed. Unless otherwise prohibited, the answer to their request isn't "no", but rather "Sure, I can do that. What's the fee?"

 

[J Grant]

It's simpler for all involved to do separate reports when what you start with is different than what you end with. Especially when there's a potential for partial release in the mix. But some clients are not that savvy about appraisals and can't foresee how difficult it will be for them to keep everything straight in the same report.

These are issues to clarify at the outset. If they want it one way or another then that's how the appraiser should proceed. Unless otherwise prohibited, the answer to their request isn't "no", but rather "Sure, I can do that. What's the fee?"

I wonder if this was a lending appraisal, since most questions from res appraisers involve lending work (or the poster should clarify for us ) The reality is that lenders virtually always want the two (or more) values on one report.
We see advice posted from a segment who either do nor or very little mortgage work, or misinterpret it, (or they are trying to sabotage things, sometimes I wonder ). In any event, advise to use a GP form ( when the lender ordered a 1004 form) , or provide a narrative repot ( when the lender needs it on a form ) or give the client two separate appraisals ( when the lender needs one )

It is also the fault of those who ask for advice, since they need to ask their client what they need. If an appraiser feels uncomfortable doing multiple values in one appraisal but that is what the client needs, then the appraiser should turn down the assignment.

 

[Surf Cat]

I'm wondering if all three values were called for in the original engagement letter.

Or, if the client realized "hey, we need this other value too" and threw it at the op like a "revision". That'd be a no-go for me and a separate assignment.

You just don't go to the auto mechanic after you paid for the oil change, and go "hey, rotate the tires too". And expect it to be done for free.

 

[Tom4value]

I did two reports for a house that is sub diving the lot. One with the house and current lot and one with the house after the lot would be sub divided. They are now saying they need the value of the house with current lot, the house once the lot has been sub divided and the value of the land. The problem is they are saying all values must be provided on one report. Is this possible? Any recommendations? Thanks

This would be best as a narrative report. Is it for mortgage financing? If so, they probably won't accept that. You can do it on one form, though. 1004 is for mortgage financing so you can use that. What you do is have comps 1,2,3 for one value, 4,5,6 for another value and for the land value, just do in narrative. You will need a lot of detail and be very careful about the parameters for the values. It is a lot of work so charge accordingly but yes, you can do it.

 

[George Hatch]

^^^ That's the other common way to do it. Additional comps pages for the additional valuation scenarios


Construction/rehab isn't the only example an appraiser may run into. Sometimes lenders ask for insurable value. That's a different valuation scenario and a different value definition than MV. Or MV+Liquidation Value or Disposition Value. Etc, etc.

We're here to answer questions. Different questions have different answers.

 

[sputnam]

I did two reports for a house that is sub diving the lot. One with the house and current lot and one with the house after the lot would be sub divided. They are now saying they need the value of the house with current lot, the house once the lot has been sub divided and the value of the land. The problem is they are saying all values must be provided on one report. Is this possible? Any recommendations? Thanks

Sure it's possible. I once completed a report that had 65 properties in it.. and they weren't all of the same sort. Multiple values of the same property in one report is no problem.