Construction Appraisals ?

[Dawn Rupe]

New construction is vetted against new construction sales when new construction is in the area. If there is no new construction in the area, you may encounter an issue of market conditions- i.e.- no one wants to build there. All houses depreciate. Costs rise with time under current market conditions and cost books are updated every 90 days or so, plus the market may well support that upward movement in prices.

If you over-build (super-adequacy) or make numerous changes to the house during construction, your cost will exceed 'market'. So decide exactly what you want, get it bid and then make no changes. A change order will cost you mucho denarii that the market won't reward you for.

Thank You, Terrel

 

[Dawn Rupe]

Hopefully the appraiser will be able to locate new home comparables. The cost increases are felt by all of the builders. Most are able to pass on the added costs and they are therefore reflected in the price.

Thank you, Sadie

 

[KHS445]

I have been in Florida for nearly a month on vacation We are staying in the Lakeland area, but have traveled to Tampa and Orlando several times. I can assure you in the areas I have traveled there is a ton of new construction and multiple new developments in the process of being constructed. I can’t imagine the rest of Florida isn’t seeing the same sort of growth.

The one thing I can suggest is to avoid the I-4 parking lot that runs between Orlando and Tampa. A 30 to 40 mile trip will take at least an hour and the other day took over two hours.

 

[glenn walker]

Most non-tract built new construction is overimproved. That is because by the definition of market value, it is difficult to find data which supports the cost of a custom built new home (most custom builds don't get sold).

One thing that gets me is the term "doesn't appraise". Nothing on the original poster, this term is widely used in the real estate world between agents and loan originators. When I see this language written into contracts I automatically take 10% off of the final value (calm down, I would never do that!)

To me "doesn't appraise" means that an appraisal was not completed. If an appraisal was completed and the indicated value is less than some parties would like for it to be, it still "appraised". Perhaps the contract price or cost is too high?

Actually there is nothing wrong with the term it didn't appraise-or will it appraise etc. Those terms are used almost entirely by The public-Loan officers and the Realtors . As as what is written in contracts that is how some attorneys recommend the Realtors write it on their contract.

 

[Basically Rectangular]

Actually there is nothing wrong with the term it didn't appraise-or will it appraise etc. Those terms are used almost entirely by The public-Loan officers and the Realtors . As as what is written in contracts that is how some attorneys recommend the Realtors write it on their contract.

I know... I was ranting.

It is the lending industry which could modernize; perhaps an appraised value which is less than 3%-5% of the contract price might still qualify for lending?

At any rate a completed appraisal which arrives at a value which is below what some parties would like for it to be is still a completed appraisal.
A silly argument and not a hill which I care about defending, but I don't feel the term "doesn't appraise" is appropriate. Good attorneys will draft something like "if the appraised value is less than the contract price.... "

 

[glenn walker]

Agree a in

I know... I was ranting.

It is the lending industry which could modernize; perhaps an appraised value which is less than 3%-5% of the contract price might still qualify for lending?

At any rate a completed appraisal which arrives at a value which is below what some parties would like for it to be is still a completed appraisal.
A silly argument and not a hill which I care about defending, but I don't feel the term "doesn't appraise" is appropriate. Good attorneys will draft something like "if the appraised value is less than the contract price.... "

A single point of value has always been non-sense , especially on such a high cost item. Many years ago a frustrated Chief appraiser gave five of us a property address, with a printed list of all the details as to its GLA, room count, lot size and told us to drive by it and whatever comparables we had selected to see if there was any location differences etc. We had two weeks to complete it. At the end of the the-two weeks we all got together and compared our appraised values, adjustments etc. The homes at that time were like $60,000 to $80,000 in that market area. The end results was like Forrest Gumps "Ya never know what Ya get in a box of chocolates" - As I best recall the range was mostly between $59,000 and $67,000 and 1 upwards of $70,000. The Chief Appraisers value was a solid $65,000. He sat us down and said see why you "knuckleheads"have to be given a Purchase Contract, or be told whats needed to do a refinance because without a number to target your like a bunch of drunks who can't stay between the white lines and are all over the road. Just Saying : ) LOL

 

[Terrel L. Shields]

A single point of value has always been non-sense

A simple estimate of the margin of error from the adjusted sales prices would give a range that would very likely capture the actual sale price.