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Completed Condo Project

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Joined
Mar 19, 2002
Professional Status
Certified General Appraiser
State
Illinois
Trying to find out what criterion others use to determine if the "project completed" section would be filled out or "project incomplete"

You would think this would be obvious, but I for example don't say a project is complete unless all units are sold and closed.

I have one right now where all construction is done, interior of all the units, ect., but they are not all sold and closed.

In this case, which section would you fill out?

Also, was anyone ever asked to fill out the " project completed" section, and include a comment stating construction is completed subject to minor upgrades?

Thanks, :)
 

Dave Smith

Senior Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Wisconsin
Joseph:

It seems to me there is a big difference between "completed" and "all units are closed and sold." To me the word complete refers to the project construction. Sales has to do with market activity.

A project could be 100% complete in every way without there having been any sales. In my view the project would still be "complete" despite the lack of sales.

The condo form has a block designated "If Project Complete." If the project was 100% complete, regardless of the number of closed sales, I would use that block. If the project was not 100% complete, regardless of the number of closed sales, I would use the block for "If Project Incomplete." I use our county public records to determine how many sales have closed. The Realtors like to include pending sales but a sale isn't a sale until its a sale, i.e. closed, and recorded.

I have completed approximately 450 condo appraisals in the last five years and I can't remember a single time a UW has called to question the way I completed the "completed" and "sold" sections.

That's my $.02 worth.
 

Restrain

Elite Member
Joined
Jan 22, 2002
Professional Status
Certified General Appraiser
State
Florida
I agree. Completed and "sold out" are two different issues. Completion refers to physical construction, and if there are additional phases to be built, while Number of Units Sold refer to the ability to market the project.

Roger
 

Bill_FL

Senior Member
Joined
Aug 23, 2002
Professional Status
Certified General Appraiser
State
Florida
Ditto others. Complete means the builder is done, it is up to the "sellers" now to fill them up.


How many times do we get into a "what is complete?" argument with a builder trying to close with work stil to be done on a home?
 
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