Model home 2 years old sold as never occupied

[djd09]

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

mind numbing...

 

[Surf Cat]

But did they define 'peer'?

 

[Dublin ohio]

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

If it is the same situation as the op. The definition of C1 is your friend.

C1: The improvements have been recently constructed and have not been previously occupied. The entire structure and all components are new and the dwelling features nophysical depreciation.

 

[Surf Cat]

If it is the same situation as the op. The definition of C1 is your friend.

C1: The improvements have been recently constructed and have not been previously occupied. The entire structure and all components are new and the dwelling features no physical depreciation.

And here lies the difficulty of the C rating system...it fits, yet doesn't fit... yes, the subject fits the C1 definition in which you bolded. However, it doesn't fit on my bold.

Per the OP, the subject is apparently the viewing model that "had a lot of buyer traffic" walking through, touched, poked, opened and closed cabinets, closets, doors, dishwasher, windows, to see what their new home in the community would be like.

It's "in between" the C1, C2 ratings as defined.

Imo, the hardest part about this assignment is the comps and the status of the market at the time of sale of each the comps.

Usually, from my experience, the viewing model in the community is The Last of the Mohicans. I would assume there would be some sort of discount for it being the viewing model. Thus, not new. So, C2 could very much be your friend as well AND workout better in the grid in relation to the comps.

But hey, that's just my perspective....

 

[Lil Rhody]

It is not uncommon for properties in the midst of construction to have that construction halted for significant periods of time for whatever reason. Foundations, plumbing and framing can be exposed to the elements for an extended period of time before construction is complete.

Consider a situation where a property has had the foundation poured, primary plumbing lines and framing are installed and constructed and the construction is halted for, let's say, 12 months due to cost issues. Those constructed portions would be exposed to the elements and accruing a year's worth of physical depreciation. During the appraisal inspection, if the halt in construction was disclosed, would you then consider something other than a C1 rating? If so, try explaining that to a lender, borrower or contractor.

 

[Dublin ohio]

And here lies the difficulty of the C rating system...it fits, yet doesn't fit... yes, the subject fits the C1 definition in which you bolded. However, it doesn't fit on my bold.

Read it again. A 2 year old home meets neither. The components are not new and there is obviously some physical depreciation albeit minimal

 

[alebrewer]

Read it again. A 2 year old home meets neither. The components are not new and there is obviously some physical depreciation albeit minimal

What about this part of the C1 definition? "(i.e., newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep)."?

 

[Surf Cat]

Read it again. A 2 year old home meets neither. The components are not new and there is obviously some physical depreciation albeit minimal

Right....so we agree. Meets neither = it fits, yet doesn't fit. Semantics.

To me.... the rating scale of fair, average, good, excellent, would work better in this scenario. Easier to categorize, no need to try and fit a round peg into a square hole. Yes it's more broad, but the valuation of real estate is not an exact science.

 

[Dublin ohio]

What about this part of the C1 definition? "(i.e., newly constructed dwellings that have been vacant for an extended period of time without adequate maintenance or upkeep)."?

Very simple. If it applies, it applies

 

[alebrewer]

Very simple. If it applies, it applies

Haha! Careful - you're getting pretty good at the sidestep.