Appraisers' Free Forum

Otis wrote:Well, first off, Fannie Mae "guidelines" don't apply to vacant land appraisals since Fannie doesn't loan on vacant land.

One more short comment. This is certainly true. However, in my practice, I have generally considered these guidelines no matter what I am appraising. The reason: they make sense. Now, that being said, it is not at all unusual to see things well in excess of the guidelines, especially when appraising land. I don't mention the guidelines or refer to Fannie on such an appraisal, but it is always in the back of my mind that the further you are from those marks, the less reliable your conclusion may be.

I know Steve and I don't disagree with you. It was just the way it was worded in the OP. There probably should have been a further clarification by the writer of the report, IMHO.

Bill C noted

In the addenduum this is what it stated:

I did not attempt to make any adjustments as they would be more than the normal 10% single, 15% net, and 25% gross


I am still scratching my head, as I read this to say, yes there are differences in the properties, but the adjustments would be so large I am not going to make them and have to explain them.

"A complex project for the person" #1

The basis for "Lack of Adjustments" in his/her mind, are beyond the "Guideline" parameters and they do not know how to justify the adjustments #2

Because of his/her reliance on the "Guidelines" - they are afraid of the ramifications, no matter what the explanation #3


#4 - Just look at what has happened right here, without any "adjustments or explanation"

Lets take this a step further; he/she has only 5 sales, a couple of years back I abscounded with some info regarding Land Sales and that a minimum of *15* should be used, close in proximity; similar in size; and within the municipality. This would at least offer a basis to start from, with an ample amount of data. Being Limited (5-sales) creates a dilema for the entire report, adjustments-explanations whatever. In some area's we work in, we do not have the luxury of similar sized lots, there are different drawing factors for appeal, and not everywhere do they offer city services. Land sales are truly funny pieces to work on.

Just FYI, in case anyone thought I was trying to defend this appraiser. I'm not, and from what I can see it looks like he should be spanked. I just wanted to raise one of the "fine" points.