Appraising a spec home

[Appraisal Santa Fe]

I'm doing a couple spec home appraisals for the first time and wonder if there is anything different I need to do. One is built in September of last year and has been on the market but not occupied. I'm assuming I'd still call it new but wonder if there is anything else I'm missing.:icon_neutral:

Thanks

RC

 

[RSW]

I'd call it a one year old house. Depreciation has started to occur. Just because it has not been occupied does not mean it is still new.

 

[Betsy Coopman]

I've always put <1 year because really thats most accurate.

 

[Caterina Platt]

I state the actual in years or months, whichever is applicable. Under condition, you'll note the condition. If it's been shown only, and condition doesn't show any wear, it is labeled as 'Like New'. It's not really 'New', but Like New certainly describes most model homes I've seen.

In some cases, the model home has been used as an office, and I can see signs of wear. Again, call it as you see it.

 

[Betsy Coopman]

I state the actual in years or months, whichever is applicable. Under condition, you'll note the condition. If it's been shown only, and condition doesn't show any wear, it is labeled as 'Like New'. It's not really 'New', but Like New certainly describes most model homes I've seen.

In some cases, the model home has been used as an office, and I can see signs of wear. Again, call it as you see it.

Even better stating the exact month- I agree the condition is up to you as the appraiser.

 

[Rufus]

Here's my comment from the last one I did like that:

The subject property is in good condition and does not appear to have been inhabited. The condition is considered equal to that of other completed new construction homes.

 

[Thomas Fiehler]

Rufus-I disagree. There will still be minor physical depreciation (roof, windows, hvac, etc).

 

[Rufus]

Rufus-I disagree. There will still be minor physical depreciation (roof, windows, hvac, etc).

Point taken. I should have used the word 'similar' rather than 'equal'.