C1 Vs C2

[sailorboy]

I am in the middle of a review and have been asked to determine UAD compliance. The subject was a model home for over a year with the appraiser classifying it as C1. Per UAD, C1 is for anything that has not been occupied and my argument is that it was occupied as a sales office so cannot be classified C1. My other question is how do most classify the age of a home. One of the comparables was completed 3 months prior to the appraisal date, however, it was before January 1st so the appraiser said it was one year old instead of zero. These issues do not affect original value but have to do with correct UAD classifications, which I am trying to assess. Did a search of these questions in this forum but found nothing.

 

[J Grant]

imo as it was occupied as a sales office it would be C2 , rather than C1. Whether an OA called a recently completed house 0 or 1 year... UAD does not address ages numerically so I don't see it as a UAD issue for which 0 or 1 year they stated.

 

[Terrel L. Shields]

A meaningless parsing that tells us nothing about the market reaction to buying a "model home" or "sales office".

 

[LordofTexas]

C1 : The improvements have been recently constructed and have not been previously occupied. ...... Improvements that have not been previously occupied are not considered “new” if they have any significant physical depreciation (that is, newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep).

C2: ...The improvements represent a relatively new property that is well maintained with no deferred maintenance and little or no physical depreciation,....

Sounds like a C2 to me.

Finished build on December 30, 2014; it's 1 year old IMO.

I give leeway there. Some markets don't reflect differences in a late 2014 home to a recent 2015 home. If they didn't make adjustments, just comment they "technically" should be called C2. If the appraisal is from your market area, contact the selling/listing brokers/agents and get their opinion on market reaction to the sale of the model home/sales office and what the buyer's motivation was on the Subject.

 

[Tim Hicks (Texas)]

I reviewed an appraisal the other day of a private build job where the appraiser stated the home was built in 2013, did the appraisal in 7/2014, had pictures with all rooms occupied (nobody makes their beds anymore) and called the home a C1. I wonder why Fannie is getting a NUC review? Several other reasons too...

 

[NEINAPPR]

I am in the middle of a review and have been asked to determine UAD compliance. The subject was a model home for over a year with the appraiser classifying it as C1. Per UAD, C1 is for anything that has not been occupied and my argument is that it was occupied as a sales office so cannot be classified C1. My other question is how do most classify the age of a home. One of the comparables was completed 3 months prior to the appraisal date, however, it was before January 1st so the appraiser said it was one year old instead of zero. These issues do not affect original value but have to do with correct UAD classifications, which I am trying to assess. Did a search of these questions in this forum but found nothing.

The argument could be made for it being a C1 or a C2, based on the interpretation of what "occupied" means. That aside, the market will tell you if there is a reaction to the home being used as a sales office or not. I personally would call it a C2, but I am sure there are as many opinions as there are appraisers. As far as a home being built prior to January 1st being called a year old, that is exactly what my software does. If the home was built in December of 2014 my software reports it as 1 yr old. Is a 2014 car bought in December of 2014 a year old now or is it not? IMHO you are being pretty stringent with regards to UAD compliance. Is the rest of the report completed in a UAD compliant manner? No disrespect meant, but it appears that you are attempting to search out any minor little thing that could be considered to be an error. Remember the golden rule and what goes around comes around and all that.

 

[TRESinc]

The subject was a model home for over a year with the appraiser classifying it as C1.

it was a model for a year so it's had a year's worth of people walking through it. the exterior was subject to the elements for a year, the heating, cooling and water systems have been used for a year, the carpet was walked on for a year, etc. C1 is new construction never occupied, which the subject isn't.

 

[Terrel L. Shields]

never occupied

Again, parsing words....what does "occupied" mean? It was "occupied" by the carpenters under construction for 8 hours or so a day...

 

[TRESinc]

Again, parsing words....what does "occupied" mean? It was "occupied" by the carpenters under construction for 8 hours or so a day...

the subject was not completed while the carpenters where there, so it doesn't matter if you want to call it occupied at that time or not.

 

[J Grant]

We are not idiot savants using words with no context. A carpenter is not occupying a house they are building. After the house is finished and habitable ,( usually with a C of O ) either it is occupied after that point in time, or it is not. The duration of occupancy may be short or long, but the answer is either yes or no..