Contract, New Construction

[Terrel L. Shields]

the market itself shows not every concession affects a price $ 4 $

The old $3,500 concession found here only on FHA sales is the only one I ever considered to not be $4$ because 9 of 10 transactions had the sales price jacked by exactly $3,500. So lists for $100,000 then new list price is $103,500... then the seller gives the buyer $3,500 back...pretty obvious, right?

 

[ZZGAMAZZ]

Wrong formula. It's doc transfer tax divided by $.55 multiplied by $500. The doc stamps are based on $500 increments, with the final number rounded up.

Must be County-specific because I received the same formula in writing from two different builders--although it's possible that your alternative formula is a doppleganger??????

 

[sputnam]

Must be County-specific because I received the same formula in writing from two different builders--although it's possible that your alternative formula is a doppleganger??????

It probably is State specific. It's easy enough to ask the people in the deed office... or... to research it yourself.

 

[ZZGAMAZZ]

That is the exact definition of it. You adjust favorable financing to a CEV. You adjust when a second mortgage is held at a higher rate - again to a higher rate.

It is coincidental that the best comp in my current assignment sold with FHA financing with what appears to be more than 5% of the selling price in closing costs. I am waiting on the Listing Agent to return my message but why would closing costs ever be that high? And.....might one who is in the camp that cc's are situational tend to adjust at LESS THAN the full amount? Kinda goes to my question about how the appraiser could demonstrate ANYTHING OTHER THAN mechanical absolute adjustments for cc's; BTW the listing agent just called to advise that the 5% included a rate buy-down as well as cc's. [UNCANNY HOW THE A.F. ALWAYS ADDRESSES ISSUES THAT PERTAIN TO A CURRENT ASSIGNMENT! LIKE ALWAYS.]

 

[ZZGAMAZZ]

It probably is State specific. It's easy enough to ask the people in the deed office... or... to research it yourself.

Dear Sputnam: How's this for intellectural curiosity: your statement Quis custodiet ipsos custodes? is attributed to Juvenal, who asked "Who will guard the guards themselves?" Woa, very thought-provoking with a million current implications.

 

[Terrel L. Shields]

"Who will guard the guards themselves?"

Sometimes we have to accept a few things on the face, state the source and go on. Trust but verify only applies when you can actually verify.

 

[ZZGAMAZZ]

You're wrong...again, as usual. I do lending work for a few small banks, not much, but some. Enough to know that F/F appraising is a world of its own and their guidelines and regulations are theirs alone and they don't care if the appraisals are based on faulty premises. The purpose of F/F is to make as many loans to as many people as possible, risk be damned, the taxpayers will cover them if/when they go south.

But, in the long run, I'd rather be condescending than ignorant any day. Your lack of understanding of basic economic principles keeps you parroting the same nonsense over and over. You have my sympathy.

Peripheral Question: Assignment is FHA new construction SFR in builder subdivision. I ask the Sales Office for the City Cert of Occupancy. Two different Offices tell me "not worry it was sent directlyi to lender." I asked AMC to obtain it from lender. Response was 'lender says don't worry. they don't need it anyway." [IMO that leaves me fully responsible to indicate that construction was completed per plans.] Would my peers refuse to sign the CIR/1004D.]

 

[ZZGAMAZZ]

Case in point: the following scenario is presented for consideration:

View attachment 82490

Note that, if I adjust Comp1 for concessions, it will now have an adjusted price of $230,000, which would be artificially lowering Comp1's adjusted price, as - clearly - the concession didn't impact the sales price. In this case, I would not adjust for the concession. Again, though - others gotta do what they think is right. I'm just telling you how we are required to adjust IF we are reporting on the F/F forms.

what was basis of $10K Adjustment to comp#? [ must not understand the premise.]

 

[J Grant]

Peripheral Question: Assignment is FHA new construction SFR in builder subdivision. I ask the Sales Office for the City Cert of Occupancy. Two different Offices tell me "not worry it was sent directlyi to lender." I asked AMC to obtain it from lender. Response was 'lender says don't worry. they don't need it anyway." [IMO that leaves me fully responsible to indicate that construction was completed per plans.] Would my peers refuse to sign the CIR/1004D.]

I have never asked for a certificate of occupancy

We are asked if the construction is p; physically completed. That is all we are asked for.

 

[ZZGAMAZZ]

I have never asked for a certificate of occupancy

We are asked if the construction is p; physically completed. That is all we are asked for.

I honestly don't even remember when or where I got the idea. I'm fully prepared to go with the flow but it seems that satisfactory completion of new construction as confirmed/approved by the appraiser is essentially the go-ahead for the mortgage loan to be extended; so doesn't the appraiser's place in line, at the end of line, carry inherent liability unless it is scoped away, but who could successfully scope away liability if the jury didn't agree? [Kinda just asking philosophically but it could be a critical issue if something goes wrong after the move-in date...]