New Construction

[Tim Hicks (Texas)]

Wow, just wow!

How does a certified residential appraiser get licensed without ever doing a new construction appraisal. Heck, just about every other assignment I receive is new construction. I have done so many, I have to think about how to explain the process it is no natural to me.

That being said, Terrell gave great advice. It is a great source of appraisal work for some.

Indiana needs to start building, lots of people need homes.

 

[glenn walker]

That's on the scum of the earth AMC.... no slight on the op, we've all been there.

LBut the audacity for finding the cheapest, fastest hand raiser without so much of an explanation of the particulars of the assignment....so they could rake in the most cash on the deal is insulting to the borrower who wants to build a house and needs a loan..... and this is the second time!

The borrower needs an experienced, geographically competent appraiser to pull this off. The borrower should drop this lender like a bad habit and move on to a lender who cares about their clients.
Mother F-ing Fk Faces....

I agree that's a lender that obviously doesn't do many construction loans or they would have a list of qualified appraisers on their approved list.

But maybe it's the Loan Brokers first
one too, so we have a first time lender, appraiser and borrower and the contractor's first new build.

One big learning experience.
As we get more info it's probably just a room addition or small ADU in the backyard and not even a new house being built. The homeowner is probably also clueless .

 

[Tom D]

Subject to plans and specs are awesome assignments.

Not at a regular fee. And depends on where this be. Smart not aking it if you are to worried. I never liked blue prints that weren't reduced in size.

 

[Surf Cat]

As we get more info it's probably just a room addition or small ADU in the backyard and not even a new house being built. The homeowner is probably also clueless .

Dude.....per the OP....

After speaking with the homeowner to schedule a time, I learned there actually isn't a house on the property. The existing home has been torn down and they are planning to build new.

 

[glenn walker]

Dude.....per the OP....

After speaking with the homeowner to schedule a time, I learned there actually isn't a house on the property. The existing home has been torn down and they are planning to build new.

Yeah my reading comprehension is bad
I got hyped up and forgot they tore the original home down. I'm getting like Charles, next I will be drinking fine wines and mumbling about women trying to seduce me on airplanes.

 

[George Hatch]

The OP can't win. People chipping on him if he takes it, people chipping on him if he declines.

WRT the amount of work: as with any new-to-you assignment the first couple will be a struggle then it'll get way easier after that.
WRT how-to, the OP can ask for a couple samples of what the lender has previously accepted and used as an example to emulate
WRT the fee it doesn't matter how much the OP charges because appraisers usually take a beating on the fee when appraising new-to-them.

The main caveat to the above is that the GSE certs speak to having the competency at the outset, rather than at the end. If this isn't a GSE assignment then the appraiser would be better off using a general purpose form and engaging in some serious discussion with the client as to their expectations.

 

[Surf Cat]

Not at a regular fee. And depends on where this be. Smart not aking it if you are to worried. I never liked blue prints that weren't reduced in size.

1. Dang straight not a regular fee.... but you know that's what's been offered by this bottom of the barrel AMC.... they obviously don't care that the borrower is ready to build. The lender should fire them.

2. Probably the wisest decision not to take it. Even if the op offered the full fee to an associate, it most likely wouldn't have been enough for the associate to guide them through the whole process to learn.

3. I used to take the blueprints to Kinko's and had them scanned so I could put a copy in my report. You need appropriate fee to do that however.

 

[sputnam]

It regularly amazes me how many credentialed appraisers have never bothered to actually read the forms they use to report appraisals.

 

[J Grant]

A way for an appraiser to learn how to do more challenging assignments is for to do a "mock assignment" appraisal. Such as replicate the specs on this assignment ( a vacant lot, and plans to build a house ) decide on the size of the house, 2500 sf or whatever, and do an appraisal, with no client. We'd be happy to review it on the board !

 

[Terrel L. Shields]

f this isn't a GSE assignment then the appraiser would be better off using a general purpose form

Most new construction is a construction loan (usually in house) and then after the building is finished, it goes permanent financing in secondary market.

Dang straight not a regular fee....

I actually find new construction much easier to do and therefore, I never charged more except where they asked me to include the cost of a final inspection.