VA manufactured appraisal with 2 separate lots

[valuecommando]

I have a VA purchase appraisal assignment that consists of one manufactured home that sits on one lot and there is a second lot that is vacant, unimproved, separate assessor parcel number that is included in the purchase. The second lot is adjacent to the subject property and is vacant, has road access, (is excess land) and buildable. There are comparable vacant lots selling for over $100,000. The second lot should be sold off separately. They want this appraisal on a 1004C manufactured appraisal form. The issue is will the assignment results be non credible being 2 distinct property uses and 2 distinct property types? Are there any issues such as highest & best use, adjustments, that I should be aware of? Also, the VA wants the appraisal subject to both parcels being placed on one trust deed. Since I should appraise according to the standard of my peers, I should at least hear what my peers have to say. Please let me know your thoughts. Thanks!

 

[RSW]

You said the 2nd lot is adjacent to the first lot. Is it across the road or is it attached to the 1st lot?

 

[Tim Hicks (Texas)]

If it is deeded as one property, it is one property and cannot be sold separately. Then you just have one large lot which covers highest and best use. Then surplus land comes into consideration.

 

[Dublin ohio]

If it is deeded as one property, it is one property and cannot be sold separately

As I understand the OP. It is 2 seperate legal parcels on same deed. Putting multiple parcels on same deed does not make them one property.

 

[Michigan CG]

If it is deeded as one property, it is one property and cannot be sold separately. Then you just have one large lot which covers highest and best use. Then surplus land comes into consideration.

I disagree with this for multiple reasons. First, a deed can have on it multiple parcels that aren't contiguous and they are on one deed only because they were purchased together.

The OP has two parcels that are legal and it is clear that the vacant parcel has a separate highest and best use than the improved parcel.

Let us pretend that the parcels are three acres each. If they were just one parcel of six acres and zoning allowed for three-acre parcels you still have excess land. The second parcel is not really excess land as it is a separate parcel.

 

[valuecommando]

You said the 2nd lot is adjacent to the first lot. Is it across the road or is it attached to the 1st lot?

The second lot is right next to first lot on the same side of the road.

You said the 2nd lot is adjacent to the first lot. Is it across the road or is it attached to the 1st lot?

 

[valuecommando]

I disagree with this for multiple reasons. First, a deed can have on it multiple parcels that aren't contiguous and they are on one deed only because they were purchased together.

The OP has two parcels that are legal and it is clear that the vacant parcel has a separate highest and best use than the improved parcel.

Let us pretend that the parcels are three acres each. If they were just one parcel of six acres and zoning allowed for three-acre parcels you still have excess land. The second parcel is not really excess land as it is a separate parcel.
[/QUOTE

You make a good point ! Would it be against USPAP or against the highest & best use of the second parcel to value that parcel as one combined parcel or would it be okay if it was an assignment request? What if the government sponsored enterprise requests the appraiser to make the appraisal subject to both parcels being placed on one trustee's deed and value them as one lot? The 2 lots most likely have more value being sold separately yet the GSE wants them appraised on one report.

 

[glenn walker]

Appraise it like you would one one large parcel and try to find some comps on similar sized lots , this is very common on Manufactured homes in California. Often two lots combined are not even that big and then try to bracket your subject with some manufactured on both larger and smaller lot sizes and see if a lot size adjustment is warranted. Once VA encumbers both those bad boys -there never going to be able to do anything with the adjoining lot anyways : ) LOL

 

[CANative]

The most technically correct way to tackle this is to provide two appraisals in one report. The improved lot and the vacant lot.

Assuming you're analysis that there is demand for the vacant lot for development purposes. Not an easy assignment. VA can be weird in how it favors the cause of the Vet.

 

[gregb]