Model home 2 years old sold as never occupied

[Surf Cat]

I don't think any of the definitions are very clear. But the ratings don't really matter anyway as long as the comparisons are appropriate.

I believe the definitions are clear. Sometimes, you do have that property that's in the gray area, in between the ratings.

Having said that, I highly doubt that the op is going to find a comp like that of the subject. All of his comps are going to be "in between" the condition of the subject. New, and never lived in (but not 2 years old) or 2 year old model matches with more wear and tear and a higher effective age due to being lived in.

So, not only does the op have the dilemma of choosing between C1 and C2 for the subject, but the C ratings for the comparables. Add to that, if one of the comps in the grid does not match the condition of the subject...red flags.

A complex assignment to be sure. Lots of commentary on this one.

 

[alebrewer]

To be clear, I'm not arguing for - or against - calling it C1 or C2. That is up to the appraiser tasked with the assignment. I'm arguing for using reason, logic, and common sense. More especially when one is tasked with using C and Q buckets defined by the GSE's. You know - stuff like 'well maintained', 'limited' physical depreciation, 'some minor depreciation', etc. Or, how about this one for C1: "newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep." (bold added by me).

Again - in light of the inherent lack of quantification in the definitions - explain what you're doing and why (i.e. use reason, logic, and common sense)

 

[Mark K]

In the case of the OP (two year old model home that has had lots of traffic), I think the answer is very clear, and some just want to argue for the sake of argument (which is nothing new in this community)

Depreciation is a concept that describes a loss from some source. As soon as a house is complete, it begins to depreciate. Your line is in the cost approach, i.e., whether or not you include physical depreciation. The fact that you don't include depreciation in a 'nearly new' home, say 3-6 months old, doesn't mean there's none. The question is at what point does it become reasonably measurable and more importantly, meaningful. My opinion is that it becomes meaningful when the typical buyer thinks its meaningful, not when an appraiser with a calendar claims it to be so.

Some large homes take nearly a year to complete yet the roof is probably in place after a month or two. According to the "logic" of a few appraisers, the roof is not new, its a C2 because its over 3-4 months old.

I personally would probably rate any house older than 3 months and certainly older than 4 months a C 2. If another appraiser called it C 1 it probably would not matter a lot in either case to appraisal results.

First thing you've said in quite some time that I agree with.

 

[DWiley]

To be clear, I'm not arguing for - or against - calling it C1 or C2. That is up to the appraiser tasked with the assignment.

In the case of the OP, I would not agree with it being a judgment call at all. We have a 2 year old home that, according to the OP, has had significant traffic, though it has not been occupied.
That is, by definition, not a C1.

I would agree that some of the definitions could be improved. They have been revised for the new UAD.

 

[alebrewer]

In the case of the OP, I would not agree with it being a judgment call at all. We have a 2 year old home that, according to the OP, has had significant traffic, though it has not been occupied.
That is, by definition, not a C1.

I would agree that some of the definitions could be improved. They have been revised for the new UAD.

Not sure how many times I can say this: I'm not arguing for - or against - calling it C1 or C2. My argument is to use reason, logic, and common sense. If, using reason, logic, and common sense, one comes to the conclusion that 'significant traffic' has, indeed pushed it into a C2 category - then reason, logic, and common sense has carried the day. It becomes hyperbole to push an argument to an untenable example, and I doubt I'd come across a 2 year old home that could be called C1, but that's not to say it's not possible, so long as it's received 'adequate maintenance and upkeep' (whatever that means). The only report certs I sign are mine.

 

[Terrel L. Shields]

The only reports I sign are mine

Me too...and the thread reminds me why I don't like nor do secondary market ... besides the fact that AMCs don't pay squat...not that I'd ever get an assignment from one since I would be bidding above their Unicorn C & R.

 

[djd09]

average

 

[djd09]

conflating age and condition seems to be a problem they will blame the appraisers for...

 

[Surf Cat]

conflating age and condition seems to be a problem they will blame the appraisers for...

AMC: Vendor to comment as to their assessment of the subject property's condition of C2 when 2 previous peers have determined C1.

 

[alebrewer]

AMC: Vendor to comment as to their assessment of the subject property's condition of C2 when 2 previous peers have determined C1.

But did they define 'peer'?