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Same here. That would mean to me. That when doing new construction appraisals. You could not use builder sales. Since most are "build to suit". Buyer walks into sales office. Decides on model, chooses lot. Never "exposed" to market. Something is missing.
And a property going under contract early in the construction process is not the same property that closes 9 months later with $100,000 in upgrades, with a sale price $100,000 higher than the initial listing price. Just because the address doesn't change doesn't mean the completed property as a whole was exposed to the market. Those are build to suit transactions.
In my view, it depends on when in the construction process the contract occurs, and whether or not the completed home is the base model, or has "upgrades." I have lost track of how many appraisers I have seen reporting that they simply apply the differences in the dollar amounts of "upgrades" as an adjustment in their appraisals. The "upgrades" part of a build to suit are not exposed to the market, so the dwelling as completed was not exposed to the market.
Please explain the state board's perspective.
Yes, but aren't all of the buyer's specs subsequently included as "upgrades," "options," "financing discounts," etc? (Although I HATE new construction and now avoid then.)
Sounds like another idiot board. There is no obligation to use the MLS in USPAP...none. Even in a non-disclosure state the appraiser could identify the buyer and seller and contact them directly. It would be time consuming and tedious to say the least..but can be done. We did it for 30 years for poultry farms and ranches. Often supplemented that with a trip to the integrator's offices to find out the farm performance expectations of the grower (most will provide an expense and profit list that comprises the latest average costs and incomes or a history of the farm itself. OTOH with a farm appraisal running $5000 maybe more, you can "take your time and don't miss" as Bat Masterson used to say.
I see it all the time in Oklahoma where the Tulsa board and the NE OK board basically overlap in the counties west of Grand Lake O' the Cherokees. They see the sale close and exchange data with that agent...or sometimes the agent of one board sells the listing of another board - again, with Zillow looking at both boards, you sometimes get data from both and can figure out when originally listed and when sold so you can calculate the DOM.
I love to do new construction usually. First off, I have a ton of new construction sales that are Realtor listed, plenty of lot sales, and if a custom build and I have good numbers, I can calculate the CA both 'by the book' and extracting a price per SF...so I might have two cost approaches and one sales approach- And normally might weight the CA in the final analysis. Of course, I don't work for idiots...I mean FNMA nor FHA. I did take a recent FHA class...just to keep up with the latest BS from them. The worst place for new construction is some rural county where new construction is not common, and then, again, I am free to use the CA...which is best when dealing with "new construction"... it's in the textbooks that way. I have no reason to dispute it.
"Cross Property" search criteria works.
