Don't do that...

I got one a while back on 40 acres... it was a pre-foreclosure. I did my report and next thing you know a clarification. The previous appraisal (that I had a copy of) said 3 acres, please fix your BPO.

Hmmm... so I check it out. In the data table it said 3 acres, but the appraiser had a note "Subject property is 40 acres, but client asked that it be compared as three" Fact of the matter is only about 5 acres was useable.

Next call I get was that the bank had a problem because their guidelines did not allow them to do a residential loan on 40 acres...

Okay now I get to my point...

I have a client with a gorgeous manuf. home on ag land. Most banks will not loan on it.

Wanna keep your license? Thell them what it really is and stick to your guns. If they wouln't budge tell them to reasign the friggin' order. You'll sleep better.

You're right. I've been thinking about this whole thing for a couple hours now. I don't feel comfortable with this at all. Hopefully, my rep will understand - if not, there's nothing I can do about it. If I lose orders, that is better than losing my license. I know this report will be completely inaccurate if I submit it as they are requesting and the owners could possibly file an ethics complaint against me as well. Not worth it. Thanks for validating what I was thinking.

If the property has a residence on it, it is residential, not agricultural regardless of the zoning of the local taxing authority. For most evaluations that I have done, agricultural means rural productive vacant rural lands.

The owners will see the report and that you only used the smaller of the acres. Here in Texas, most of the evaluations of rural residences want either the house and one acre, five, or ten acres according with the homestead laws. Only when they are borrowing off of a working farm or ranch with the total be used.

I would go ahead and do as TU asks, keep copies of the emails and the finished report.

When I said "ag-land" I meant with an active commercial ag operation on the property (Strawberries in this case)... there is land that's zoned ag but is really residential, you're right... that would be a different case.

There is crops growing on half of this land. I haven't received any e-mails from my rep, only phone calls so I can't "prove" anything if I needed to.

Will THEY LET YOU ALSO SUBMIT AN ADDENDUM OF YOUR OWN? YOU COULD SAY THAT YOU ARE CONFIDENT THAT YOUR OPINION OF VALUE IS ACCURRATE AND THERE ARE NO COMPS TO JUSTIFY OR SUPPORT THE VALUE. This WOULD BE EASIER IF YOU WERE COMPARING ONLY LAND AND MAKE AN AJUSTMENT FOR THE VALUE OF THE HOUSE. They SHOULD HAVE DIFFERNT FORMS FOR EACH PROPERTY TYPE.A STANDARD FORM DOESN'T ASK APPOPRIATE QUESTIONS FOR MULIFAMILY OR COMMERCIAL. MANY BANKS WIL NOT CONSIDER THE VALUE OF OUTBUILDINGS AND/OR ANY ACREAGE OVER 5. I DO NOT KNOW WHY??? GOOD LUCK!

Will THEY LET YOU ALSO SUBMIT AN ADDENDUM OF YOUR OWN? YOU COULD SAY THAT YOU ARE CONFIDENT THAT YOUR OPINION OF VALUE IS ACCURRATE AND THERE ARE NO COMPS TO JUSTIFY OR SUPPORT THE VALUE. This WOULD BE EASIER IF YOU WERE COMPARING ONLY LAND AND MAKE AN AJUSTMENT FOR THE VALUE OF THE HOUSE. They SHOULD HAVE DIFFERNT FORMS FOR EACH PROPERTY TYPE.A STANDARD FORM DOESN'T ASK APPOPRIATE QUESTIONS FOR MULIFAMILY OR COMMERCIAL. MANY BANKS WIL NOT CONSIDER THE VALUE OF OUTBUILDINGS AND/OR ANY ACREAGE OVER 5. I DO NOT KNOW WHY??? GOOD LUCK!

I am going to call my rep in the morning and tell her I feel uncomfortable with the situation. If there was a place for comments in their form, I could just write in that it is zoned AG and that the extra land is worth ___ and that I am just valuing the residence and 5 acres. If they let me use an addendum or have a nice size comment section, I would go ahead and proceed.

Just an update: I talked to my rep - she told me how I can get the form to allow me to add comments regarding the add'l acreage. I'm glad. I want to service my client but don't want to be misleading. I also want to cover my own butt. Thanks for your comments!

Can you share with everyone how you can get the form to allow you to add additional comments. Thanks.

Where the drop down list of comments are, just choose the one at the bottom that says "other". It will place a little + sign next to the comment- click on the + and you will get a short little space to write something of your own.