Builder refusing entry under construction

[glenn walker]

Well, this is a first. Got an order for a new construction condo. Emailed contact about the inspection. Asked if it is secured and will need to make an appointment or can I just go on my own. She responded that the builder does not allow appraisers in when it is under construction. I can take exterior photos and I can visit a model of an identical unit in a different development in a different town. It is after hours so I haven’t actually spoken to her yet or notified my client.

Has anyone encountered this? If so, are lenders ok with just going on plans and specs? If property is under construction I always talk about the current construction status. Obviously, I can’t do that now.

Yeah because of liability if you Fall or get hurt you could sue him. So easy just wait until he says you can go back.

 

[Tom4value]

I assume you're valuing for the buyer's permanent financing (GSE pipeline or its equivalent) and not for the developer's construction loan (usually an FRT)

Unless there's an "as is" required for the assignment it doesn't much matter what the current condition is like because that isn't what you're valuing; you're valuing the hypothetical "as if completed" condition which will not exist until the construction completes.

Whatever the inspection requirements are for the assignment will be determined by the client. Better to ask and know than to assume but not know.

You are correct on the type of loan. I will check with the client tomorrow and if they are fine with the inspection from the outside, then problem solved. Of course, I will disclose in the report the extent of inspection.

If they want me inside, I will carry the fight to the builder.

 

[Tom4value]

Yeah because of liability if you Fall or get hurt you could sue him. So easy just wait until he says you can go back.

I figured it was because of his fear of liability but I do have a job to do. I am not some 13 year old causing trouble. I will see what my client says.

 

[J Grant]

Never had the builder refused access. A few times when it was under construction, the builder required that I wear a hard hat and had a crew member accompany me around- no problem.

 

[George Hatch]

You are correct on the type of loan. I will check with the client tomorrow and if they are fine with the inspection from the outside, then problem solved. Of course, I will disclose in the report the extent of inspection.

If they want me inside, I will carry the fight to the builder.

IMO the dispute isn't between you and the builder; it's between the lender and the builder. If the builder wants to fight then sic the lender on them and let them work it out between them. As Chad noted, the builder is probably fretting the liability issue.

 

[OSU Beavers]

Show up before noon wearing a hard had and tell them that you are the inspector for The Bank.

On a just framed house I noticed that the second story that was suppose to have a two foot rear cantilever didn't. I asked for the foreman and pointed out on the plans that the two foot overhang was missing. "Oh, that must be why the floor joists they sent us were too long. Yeah, we just cut those off to match the first story". I told them that the buyers ordered and The Bank was only pay for what was on the plans so they should figure out how to fix it.

 

[shrubberyvaluation]

You are correct on the type of loan. I will check with the client tomorrow and if they are fine with the inspection from the outside, then problem solved. Of course, I will disclose in the report the extent of inspection.

If they want me inside, I will carry the fight to the builder.

I wouldn't fight the builder The most pushing I do is for information of sales in the community. Sometimes, it can take time, most of the time when I tell the lender that the report will be delayed because of the builder is dragging their feet all of a sudden the builder wants to start helping. I don't know how some people can do 24 hr turn times with some of these builders, some take over a week to get community information from.

 

[gregb]

I don't know how some people can do 24 hr turn times with some of these builders,

I never agree to 24 hour turn times on appraisals, or for any other things on a day to day basis.

 

[sputnam]

Never had that situation. I would tell them that visiting a model unit was not acceptable unless they also provided copies of the plans and specifications for the unit to be appraised. If they refuse, kick it back to the Client and let them deal with it. Appraisers do appraisals on proposed dwellings. You don't have to inspect the interior of the subject if you are doing an 'as completed' appraisal.

What you can do is include comments in the appraisal report that state that the builder refused to allow you to access the interior of the subject improvents and that your appraisal is based on plans, specifications, exterior only inspection of the subject unit, and (if you want to do it) a walk through of a model unit.

 

[Tom D]

Just yell ICE and the place will clear out for you to inspect. If you are taking photos look around, 1st floors are easy to get in and out unnoticed. But is the sample the same as your unit. Nobody ever do vacant ground with the specs and plans in their hand, with subject to. I don't think the lender cares because you gotta go back anyway and new construction can be a while till finished.

I did a ton of new construction from the sample homes. Used the sample home & interior photos in the report, labelled 'sample home'. Took the wife with me, she liked looking at them, then stop at a mall. Nice cheap date during the week.