New Construction Custom Value Issues

[BRCJR]

Post 20 is correct.

The lender cannot use the appraisal, for a lending decision, when you "hire" another Appraiser.

 

[jsmith1437]

Thanks everyone for your feedback. Got the response back from the appraiser and there is no change to the value. The response is included in the screenshot below. I disagree with almost everything he said considering I live in this area now and do work here as an architect. Especially the commentary about not including comps from another county when the county line is about 2 miles from the property (in the direction of the nearest city). The lender has declined to hire a third appraisal for review, so, I guess we are stuck with this low value. We are working to find ways to bring more cash to the table so that we can still move forward. However, to be completely honest, this has given me a new respect for the complexity your industry deals with. I understand the negatives of influencing an appraiser and I would never want to go back to a time when people were essentially paying to get the values that they need. However, I feel like in an instance such as this I have NO rights as a buyer. There are lots of these houses being built by custom builders in the area and there is just no way for this appraiser to consider this. I could definitely provide examples, other builders and even title company documentation showing this, but, I can't even talk to him. Just not right. However, I am not one to get hung up on things. I have really appreciated learning more about your industry. Thanks again for taking the time to respond and offer your help. Best of luck to you all in the future.

 

[BRCJR]

delete

 

[NachoPerito]

No adjustment for a home that is nine years older?
I would love to see how his data supports that.
I just did a quick analysis of to determine the condition adjustment (below) in my region and it came out to far greater than zero.

 

[jsmith1437]

One final update. I updated the contract about for the house with the builder by reducing flooring allowances, changing the ceiling finish in the great room and changing from quartz to granite countertops. Did not change the type of flooring, just the allowance. He dropped the appraisal by $25,000. I am bringing yet more cash to the table because of this "opinion". Loan officer says it is the first time she has seen adjustments in the value for minor finish adjustments. I am considering filing a complaint against the appraiser AFTER the transaction is complete. Very out of touch with the market and in my opinion has not adequately researched his findings.

 

[The Bob]

So he can't support an adjustment for 10 years difference in age, but he can for quartz vs granite.
I think I'd file a complaint, too.