C1 Vs C2

[bnmappraisal]

, UAD or Fannie is fun to dump on but we cant' blame them for everything

One year old is one year old in Florida or in Montana.

I definitely agree with both comments, JG.
And as another poster stated 12/30/2014 yr built - today, that's 1 yr old house. Age is based on yr built in my book.

 

[J Grant]

Re read the condition ratings and definitions (I add the UAD definitions to every report from my software.

UAD is NOT about our opinion, it is about certain facts about the property. To answer your above question built in 2013, the answer is right there in UAD italics under C1, where they explain ( Note: Newly constructed improvements....that have not been previously occupied are not considered "new" if the have significant physical depreciation ( that is, newly constructed dwellings that have been vacant for n extended period of time without adequate maintenance or upkeep)

The answer to dwelling that was occupied/used as a sales office use, C1 says it : "The improvements have been recently constructed AND never occupied. " If your C2 house used as a sales office is in pristine condition, then explain as such. , if market shows no adjustment between C2 and C1 then make no adjustment, but the dwelling that was occupied as a sales office is still C2.

If a sales office model is in BETTER condition than a C1 house, explain, but the model sales office is still C2 because it has been occupied. Just the messenger here.

 

[Terrel L. Shields]

is IMMACULATE, for obvious sales reasons!

"Zackly

how is occupied vs never occupied the opinion of the appraiser?

occupied by the BUYER? occupied by the BUILDER. And I have walked thru many sales offices that are shells or partially completed homes...meant to show off the construction. They are only completed and carpeting put down after they move on to the next "show" house.

because it has been occupied. Just the messenger here.

Has anyone slept in it? Cooked a meal in it? Taken a bath? They might have went to the bathroom but maybe the finish carpenter did as well. Again the term "occupied" can be argued regardless your certitude to the opposite.

 

[residentialguy]

I vote C1. The house hasn't been occupied. Occupied is a lived in house where people are using it. If you think it's occupied, then I hope you don't check Vacant on page 1.

C1 states "Recently constructed improvements that have not been previously occupied are not considered “new” if they have any significant physical depreciation (i.e., newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep)." Model homes are well maintained and a desk with a cougar walking around in her bare feet showing some buyers around, also in their bare feet hardly creates significant physical depreciation (not to mention that often the carpets are replaced. Many new homes take a year or more to finish.

Look up the term "new construction" in our holy AI dictionary of RE Appraisal: "New construction: a building project that has been completed recntly, i.e., within the past THREE YEARS."

C1...unless you truly see significant physical depreciation after they prep it for the new homeowner that will truly occupy it.

 

[J Grant]

The above is the subset italics explanation for C1, the main definition sf recently constructed AND never occupied. Imo, a sales team occupying a building every day with lights on, using toilets and sinks and buyers trooping in means it was occupied. A house could have been occupied, then the people move out and now vacant, but it was occupied.

That Said, If I were reviewing it I would not make a big deal about it since I can understand why some appraisers believe a sales office does not meet the standard of occupancy. I would write that C2 is a more appropriate category since it was occupied as a sales office and move on with the review.

 

[residentialguy]

JG, the house is not occupied as a sales office. One room is turned into an office, no different than any staged house. They are limited to using the 1/2 bath. The whole concept of C1 vs C2 is about purchasing a new house that is different from a home that someone has lived in. It's like purchasing a new car that was used as a showroom demo that only drove slowly around the lot. It is still a new car and buyer's see as that.

I agree with you that if I were reviewing it I would not make a big deal about it either way, unless there was an erroneous adjustment because of it.

 

[J Grant]

Can see a case for either...would be a good FAQ for Fannie to answer

 

[chad hampton]

I vote C2, but who really cares? I wouldn't make an adjustment unless the interior warranted one.

Seems to me that C2 is more closely related to year built than it is condition. It's a flawed way to classify properties. If a home is 2 years old and in good condition, I call it a C2. If it's 5 years old and in good condition, I call it a C3.

But the condition for both is the same - good.

 

[Tim Hicks (Texas)]

So what if it has been a model home for three years? Three year old construction, occupied during the day. Seems like C2 to me.

 

[LordofTexas]

.....And as another poster stated 12/30/2014 yr built - today, that's 1 yr old house. Age is based on yr built in my book.

I said that date as NO city clerk I've ever known works on New Years Eve filing documents.