Posted on: 10th Jun, 2012 10:40 am
I own a property where I have permits to subdivide into 3 buildable lots. I am being taxed/assessed on the property on 3 separate tax bills, total value $1.1 million. The property though is being held on a single deed and I have mortgage of 650K. We want to refi and have the income and credit to do it BUT I want to know if an appraisal can take into account the permits when valuing the property as a whole?
I don't mean it could be valued at the 1.1 million, but I need it to value at 800 or so to refi (with some extra cash down). This is in Eastern MA. Thanks!
I don't mean it could be valued at the 1.1 million, but I need it to value at 800 or so to refi (with some extra cash down). This is in Eastern MA. Thanks!
Hi Guest,
Your query has been replied to in the given page:
http://www.mortgagefit.com/appraisal/about54596.html#286987
Take a look at it. I hope it will help you.
Thanks
Your query has been replied to in the given page:
http://www.mortgagefit.com/appraisal/about54596.html#286987
Take a look at it. I hope it will help you.
Thanks
The permits probably mean very little as to the appraised value.
To sell the lots so someone could build on them, you would need the exsting lender's permission.
It is not likely they will give you permisssion, because then they would have a $650,000 mortgage on one lot and one house. If you can not get your mortgage refinanced on that value now, why would the lender lett you sell two lots?
If you can not sell the lots, what value are the permits.
Just my thoughts. I am not an appraiser.
To sell the lots so someone could build on them, you would need the exsting lender's permission.
It is not likely they will give you permisssion, because then they would have a $650,000 mortgage on one lot and one house. If you can not get your mortgage refinanced on that value now, why would the lender lett you sell two lots?
If you can not sell the lots, what value are the permits.
Just my thoughts. I am not an appraiser.
Actually if I were able to sell one lot and give the proceeds to the mortgage holder in exchange for a partial release, it works to the mortgage holder's benefit. They now have a $475K or so mortgage on a not much smaller lot than they had before. That's an option ( I already spoke to them) but I was asking about a different approach ..
That is the correct approach: Check with the lender to se if they will do partial release. Some lenders will and some will not. You already checked and that is good job on your part.
An appraiser has to answer your question.
It would seem logical that a lot that could be built on should be compared in value to other lots that could be built on as opposed to comparing your lot to lots/land that can not be built on.
Provide the buildable lot info to the lender when you apply for the mortgage and ask them to provide the info to the appraiser when they order the appraisal.
Otherwise, contact any mortgage lender in MA and ask them to ask their appraiser. Would be best if you contact someone who you plan to do the mortgage with. Then they have some incentive to ask the question of an appraiser.
You asked your lender if they would do partial rlease. If you refinance with someone else, you have to check with them about partial release. If you refinance with existing lender, ask them to ask their appraiser.
An appraiser has to answer your question.
It would seem logical that a lot that could be built on should be compared in value to other lots that could be built on as opposed to comparing your lot to lots/land that can not be built on.
Provide the buildable lot info to the lender when you apply for the mortgage and ask them to provide the info to the appraiser when they order the appraisal.
Otherwise, contact any mortgage lender in MA and ask them to ask their appraiser. Would be best if you contact someone who you plan to do the mortgage with. Then they have some incentive to ask the question of an appraiser.
You asked your lender if they would do partial rlease. If you refinance with someone else, you have to check with them about partial release. If you refinance with existing lender, ask them to ask their appraiser.