Freddie Mac New Construction Home

[NC Appraising]

Any new construction completion date is the age of the comp no matter how long ago it was sold. What you are mistaking, It's called a time adjustment. Da new house sold 2 years ago as new. Your confussing a time adjustment.

And we are not talking about a new house that sat for 2 years before it sold. Every new house sits a bit if done on spec. Only in developments are they pree sold.

Your comp age was 0, that sold 2 years ago. You forgot a time adjustment. A pro making a rookie mistake, 5 yard penality, rekick.

Time adjustment? Lost me...

Reread my 1st post.

I was just stating the facts in my report.

C1 home. Fact. New construction.
Actual age 2 years (per tax card). Fact.

UAD says to state the actual age. I did per the tax card.

Now, if you want to argue or disagree with the actual age we can

I guess you could argue that the actual age is for when it sold new would be 0. I could see your point. Although, that is what the C1 is for...new construction.

For example, very high end custom built home that took two years to build. Permit was pulled in 2023. Tax card has the actual year built of 2023. It was completed in 2025. You have been asked to appraise it two weeks after it was finished as a new construction home.

The completion date is not the actual year built. Two different things.

Those are the facts. C1 home that was built in 2023. Completed in 2025.

If I were to appraise that home two months later as a refi and the owners have moved in, it would be a C2 condition home with a actual year built of 2023.

I would not use the 0 year built for the actual age just because it was new when it sold.

 

[Non Sequitur]

Time adjustment? Lost me...

Reread my 1st post.

I was just stating the facts in my report.

C1 home. Fact. New construction.
Actual age 2 years (per tax card). Fact.

UAD says to state the actual age. I did per the tax card.

Now, if you want to argue or disagree with the actual age we can

I guess you could argue that the actual age is for when it sold new would be 0. I could see your point. Although, that is what the C1 is for...new construction.

For example, very high end custom built home that took two years to build. Permit was pulled in 2023. Tax card has the actual year built of 2023.

Those are the facts. C1 home that was built in 2023. Yes, it was a new home when built.

If I were to appraise that home two months later as a refi and the owners have moved in, it would be a C2 condition home with a actual year built of 2023.

I would not use the 0 year built for the actual age just because it was new when it sold.

Hard to follow, but the way I'm reading it Comp 1 was sold as new construction. Its COO date was 3/24 and it sold 3/24. Its actual age as gridded in a report is its age when it sold, it's not based on your subject's effective date. The report grid should read Actual Age 0. IMO the year built is the year completed, not the year the permit was issued.

 

[NC Appraising]

You got it. It was in the MLS as year built: 2023, so that is what I used for the actual year built in the appraisal. It was a new construction home.


Let's try this another way.

The Effective date of the appraisal is 05/25.

In the MLS, you note two new construction comps.

1234 oak Ave. MLS: year built 2024. Sold 11/24.

224 pine st. MLS: year built 2024 sold 04/24.

So, what is the actual year built that you use in the appraisal?

 

[Non Sequitur]

Let's try this another way.

The Effective date of the appraisal is 05/25.

In the MLS, you note three comps.

1234 oak Ave. MLS: year built 2024. Sold 11/24.

224 pine st. MLS: year built 2024 sold 04/24.

So, what is the actual year built that you use in the appraisal?

The effective date of the report doesn't determine the age of the comps on their sale dates.

1234 Oak Ave, built 2024, sold in 2024, Actual Age at sale is 0 in the grid.

224 Pine St, built 2024, sold in 2024, Actual Age at sale is 0 in the grid.

 

[DWiley]

When we put comps in the grid, the relevant characteristics reported should be as of the date of the sale, not the date of the appraisal or report.

Simple example:

Home sells in January and has 2,000 SF at the time of that sale.
In Feb/March a 300 SF addition is built.

If that Jan sale is used as a comp for an appraisal in June, then the GLA on the grid would be 2,000 SF (the size at the time of sale), not 2,300 SF (the size at the time of the appraisal)

 

[jay trotta]

You got it. It was in the MLS as year built: 2023, so that is what I used for the actual year built in the appraisal. It was a new construction home.


Let's try this another way.

The Effective date of the appraisal is 05/25.

In the MLS, you note two new construction comps.

1234 oak Ave. MLS: year built 2024. Sold 11/24.

224 pine st. MLS: year built 2024 sold 04/24.

So, what is the actual year built that you use in the appraisal?

What date was the C. of O, issued? IMO-that would be the effective date.
No CO - No Occupancy (at least here, cannot attest to other areas)

 

[NC Appraising]

The effective date of the report doesn't determine the age of the comps on their sale dates.

1234 Oak Ave, built 2024, sold in 2024, Actual Age at sale is 0 in the grid.

224 Pine St, built 2024, sold in 2024, Actual Age at sale is 0 in the grid.

Of course it does it. Is that not what your software uses?

I use alamode. Assume you are appraising a resale. Effective date 05/25

MLS: comp 1 built in 2023. If i put in 2023, alamode uses the 05/25 effective date and list the comp as 2 years old.

 

[Non Sequitur]

Of course it does it. Is that not what your software uses?

I use alamode. Assume you are appraising a resale. Effective date 05/25

MLS: comp 1 built in 2023. If i put in 2023, alamode uses the 05/25 effective date and list the comp as 2 years old.

I use TOTAL and before that Click Forms. I'm not following, where do you put year built for the comps? The sales grid is Actual Age, I just put 0. The only field asking for year built is in the Improvements section for the subject.

Edit: In place of 0, I just tried entering 2024 in the Actual Age field for a comp built/sold in 2024 with a report I'm working on now. I see what you're saying, IMO the software is wrong. It shouldn't age the comp from the subject's effective date of value.

 

[NC Appraising]

What date was the C. of O, issued? IMO-that would be the effective date.
No CO - No Occupancy (at least here, cannot attest to other areas)

In my area, I use what the tax card says. The tax office uses the permitt date issued, not the COO.


The COO represents the completion date/when all has been approved, not the year built.....in my counties.

A crazy example...

Some builders will use the existing foundation. The home will be 100% new, except for the foundation. The tax card will still have the year built as 1950. The COO will say 2025. Two different things.

 

[NC Appraising]

I use TOTAL and before that Click Forms. I'm not following, where do you put year built for the comps? The sales grid is Actual Age, I just put 0. The only field asking for year built is in the Improvements section for the subject.

Edit: In place of 0, I just tried entering 2024 in the Actual Age field for a comp built/sold in 2024 with a report I'm working on now. I see what you're saying, IMO the software is wrong. It shouldn't age the comp from the subject's effective date of value.

Now we're cooking....

Most appraisers use these MLS importers....if the MLS says 2024 are appraisers going back in and changing it to 0?

Not in my market.

The only reason I got flagged is because of the effective date of my appraisal. It was 01/25 which made that comp 2 years old. If the effective date was 12/24 the comp would have been 1 year old. Freddie wouldn't have flagged it.

Calender....