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I Hate New Construction

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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I relented and took a bank (small direct) order for new construction "across the line" from the bank's home base.

Getting complete info is like pulling teeth. What do you mean you need to know where the walls are?... It's 3,000 SF... Duh, no it is less than that because you have a notch out here, a notch out there, etc.

Why do you need to know what the materials are? A cost estimate? What's that? Of course, they want it as soon as possible, so I sent the lender a list. Provide me this and I will start.
 

KONA

Junior Member
Joined
Aug 16, 2007
Professional Status
Certified General Appraiser
State
California
They have no business making construction loans if they don't have a clue as to what is necessary to evaluate/define the realty.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
I relented and took a bank (small direct) order for new construction "across the line" from the bank's home base.

Getting complete info is like pulling teeth. What do you mean you need to know where the walls are?... It's 3,000 SF... Duh, no it is less than that because you have a notch out here, a notch out there, etc.

Why do you need to know what the materials are? A cost estimate? What's that? Of course, they want it as soon as possible, so I sent the lender a list. Provide me this and I will start.

If it is by plans and specs, they have no clue. VA has what is called a 95% complete(lacking buyer preference items). They oftten don't know what that means either. VA has very specific requirements as to contract, documents, exhibits, etc. Still have a hard time with clients understanding what is required.
 

TRESinc

Elite Member
Joined
Dec 1, 2011
Professional Status
Licensed Appraiser
State
Ohio
first residential report in over a decade? good luck!

btw, nothing has changed with regard to the builder "problems". just wait til you ask for plans and they give you the promotional floorplan brochure that has some of the interior room dimensions...
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
they give you the promotional floorplan brochure
We don't have such here for the most part. The builders are mostly fairly small outfits - have 1 or at most 2 houses under construction at a time. I can only think of a couple of the more urban / suburban builders who build in bulk and have a sales office....Ask someone about the sales office, and they say "Huh?"

first residential report in over a decade? good luck!
It is not secondary market...you guys are drugged with that stuff. I don't even use a form, this will be narrative...and watch someone jump in and claim that is not USPAP compliant...go for it. It is an in-house bank loan. The kind of loans builders get not the "I gotta have 30 year secondary market or I can't afford it" buyers of the RE.
They have no business making construction loans if they don't have a clue as to what is necessary to evaluate/define the realty.
The lenders don't control the ordering department for appraisals. The low level employee - a junior lending secretary - has nary a clue because they are not mavens of appraisal or construction. So I have to tell her what I need and then she gets ahold of the borrower who is a builder and should know what they intend to spend.
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Out of curiosity, does the client require an as-is and an a prospective (as complete)?
 

Sid Holderly

Senior Member
Gold Supporting Member
Joined
Jun 16, 2005
Professional Status
Certified Residential Appraiser
State
Indiana
Getting a good understandable set of plans (generally a vague materials list) is rare is this rural area. Getting a cost estimated that fits the draw format of a regional lender is worse. A copy of the architect's drawings come in about 2/3 of the cases. These basic drawings are generally changed several times before completion. Significant living area, basement or garage area changes are not uncommon. Is the pay worth the extra work ??
 

Digger88

Elite Member
Joined
May 11, 2010
Professional Status
Certified Residential Appraiser
State
Virginia
95% of my new construction is existing or 90+% done so new construction is super easy! the very rare under contract per plans and specs homes are usually nvr and i always get a full supply of all needed documents via email. the joy that is appraising in the dc metro area. :peace:
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Out of curiosity, does the client require an as-is and an a prospective (as complete)?
Also out of curiosity, I'm gonna go out on a limb and guess it's NOT in a subdivision, but a stand alone new construct?
 
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