New build with temporary countertops

[George Hatch]

The assumption the builder will use particle board may not hold up. Maybe they're using a laminate; those inexpensive and readily available.

The people saying "not to spec" are correct, it's not 100% to specs. But a creative lender can probably work with habitable on the interim basis. The appraiser can facilitate by providing an "as is" and a "subject to" and if the lender is worried about the cost of a custom counter install they can fund control the balance. It's not like the "as is" value will be significantly lower than the "as completed per plans and specs" value.

Really more of a lender problem than an appraisal problem. It may take them a couple months to sell the loan. Saying its complete per plans and specs and the "as complete" value isn't subject to the addition becomes misleading, so don't do that.

 

[Dublin ohio]

If particle board countertops in the kitchen are valued the same or similar in your market as granite or quartz that is perfectly fine. Not everyone's market is the same. They are not valued the same in most cases I run across.

I'm just there to appraise and report, the lender can make loan decisions.

Good quality quartz and granite countertops can be in excess of $100 psf. Some of the newer synthetics can be $200 psf. So 25sf of countertop can be 5k-10k.

 

[Tru Red]

If particle board countertops in the kitchen are valued the same or similar in your market as granite or quartz that is perfectly fine. Not everyone's market is the same. They are not valued the same in most cases I run across.

I'm just there to appraise and report, the lender can make loan decisions.

So let's be simple and basic here. Say a home is valued at $500,000 if 100% complete. Say that same home is 99.95% complete except for the counter in the kitchen.

Do your own math here. I'll say a granite counter might cost $2,000. A temporary POS wood counter might cost $200. A difference of $1,800. $1,800 divided by $500,000 = .0036%. Move the decimal.

So..................you can provide an opinion of value that precise?

Good for you mate. smh

 

[Mark K]

It's not like the "as is" value will be significantly lower than the "as completed per plans and specs" value.

So you're saying that as long as its a small lie, its OK?

It seems that some appraisers would sign off on an inflatable kiddie pool sitting in the back yard instead of the inground pool that was included in the contract. After all, if you're going to lie about it, you might as well get your money's worth.

 

[Tru Red]

It's not like the "as is" value will be significantly lower than the "as completed per plans and specs" value.

That.....is what I was trying to explain to him. A .36% difference (in my example) is being argued here. He is simply not understanding this.

You can lead a dog to water.........

 

[Dublin ohio]

So let's be simple and basic here. Say a home is valued at $500,000 if 100% complete. Say that same home is 99.95% complete except for the counter in the kitchen.

Do your own math here. I'll say a granite counter might cost $2,000. A temporary POS wood counter might cost $200. A difference of $1,800. $1,800 divided by $500,000 = .0036%.

So..................you can provide an opinion of value that precise?

Good for you mate. smh

I see nowhere on the 1004d that gives a 3rd option. It is either compete per the oa or not. Why are so many making a lender/builder problem the appraiser's problem. Every builder I work with knows what will or will not be complete due to circumstances beyond their control (back orders, weather related, etc.). They all make escrow arrangements with lender. Most if not all before I do the "final".

 

[shrubberyvaluation]

That.....is what I was trying to explain to him. A .0036% difference (in my example) is being argued here. He is simply not understanding this.

You can lead a dog to water.........

In your example of a $500,000 house that would be around what $2?

 

[Ariba]

So let's be simple and basic here. Say a home is valued at $500,000 if 100% complete. Say that same home is 99.95% complete except for the counter in the kitchen.

Do your own math here. I'll say a granite counter might cost $2,000. A temporary POS wood counter might cost $200. A difference of $1,800. $1,800 divided by $500,000 = .0036%. Move the decimal.

So..................you can provide an opinion of value that precise?

Good for you mate. smh

Why stop at the granite counters. How about no glass shower enclosures ($500), mirrors ($300), tile work $400), temporary flooring, tile work, paint, etc. Say 99,1% complete.

 

[George Hatch]

So you're saying that as long as its a small lie, its OK?

It seems that some appraisers would sign off on an inflatable kiddie pool sitting in the back yard instead of the inground pool that was included in the contract. After all, if you're going to lie about it, you might as well get your money's worth.

Here's the rest of what I said in that paragraph.

The people saying "not to spec" are correct, it's not 100% to specs. But a creative lender can probably work with habitable on the interim basis. The appraiser can facilitate by providing an "as is" and a "subject to" and if the lender is worried about the cost of a custom counter install they can fund control the balance. It's not like the "as is" value will be significantly lower than the "as completed per plans and specs" value.​

No lying involved. Or suggested.

 

[Jayjay25]

The simple answer to your question is YES. It is possible. Had this exact thing happen on a VA home several ago. As long as there was a counter it was fine. This should be easily worked out between the appraiser and person of contact for the lender prior to the appraiser submitting the appraisal report.

The quality of one temporary counter in a brand new home would not have any effect on the overall opinion of value anyways.

Common sense. Many don't have that these days.

It’s clearly the lenders who don’t have common sense these days. This is obviously a builder/lender/borrower problem everyone is trying to make an appraiser problem. Say no and escrow.