• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

New Construction Sales Office

What would you do

  • Explain why all sales are needed for review.

    Votes: 1 8.3%
  • Ask to speak with the division supervisor.

    Votes: 0 0.0%
  • Inform lender information is not being provided

    Votes: 6 50.0%
  • Inform lender sales office refuses data and withdraw from assignment.

    Votes: 1 8.3%
  • I don't need all the sales data in the community

    Votes: 4 33.3%

  • Total voters
    12
Status
Not open for further replies.

PushinValue

Junior Member
Joined
Nov 28, 2011
Professional Status
Certified Residential Appraiser
State
California
new construction sales office sends information on the subject along with 4 sales and 2 pending (via email).

A response is made asking if they have a spreadsheet with all sales and homes in contract.

Response comes back saying "we do not have a spreadsheet with that info"

A response is made asking for a list of all sales within the complex.

Response comes back "No."
How would you handle the situation?
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Do you have 3 other comps that are not sales of house land packages?
 

residentialguy

Elite Member
Joined
Mar 24, 2009
Professional Status
Certified Residential Appraiser
State
Minnesota
They have no obligation to provide you with Jack-sheet. 6 sales are a lot, imo. Are sales not in the MLS? You have to call the agents to verify, anyway.
 

PushinValue

Junior Member
Joined
Nov 28, 2011
Professional Status
Certified Residential Appraiser
State
California
I have not even looked for sales yet or inspected the property.

When you do new construction appraisals don't you usually see about 1 in ten sales are outliers (significantly higher than a majority of the sales)?


I have appraised in nearly every community in my area and they always provide the sales over the last one to two years within their community...
 

CindyR

Senior Member
Joined
Oct 26, 2003
Professional Status
Certified Residential Appraiser
State
Arizona
I have appraised in nearly every community in my area and they always provide the sales over the last one to two years within their community...

No builder has ever given me a spreadsheet of all the sales in the community and i have never asked for a spreadsheet of all the sales in the community. if i want to see all the sales in the community i can easily download my own spreadsheet from county tax records. but in my market analysis i will want to identify my own relevant sales from competing communities.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I usually have great cooperation from sales offices but every once in awhile I get an agent who is not very cooperative. That is usually resolved quickly by a call to the builder's office. While some builders do keep a spread sheet of all sales I rarely ask for that. I do like for the builder to provide me with the most current sales of the same or similar models. I also like to get a marketing brochure floor plan and a copy of the plan if it is on .pdf.

Brings up another issue concerning new construction. If I'm going to require a final inspection, I prefer to add a final inspection fee to my invoice when I submit the appraisal. Most lenders don't pay for the appraisal before the closing anyway so this eliminates them calling and asking...."how much is the final inspection?".
 

Mark K

Elite Member
Joined
Jan 27, 2004
Professional Status
Certified Residential Appraiser
State
Indiana
Do you have 3 other comps that are not sales of house land packages?

I'm thinking along the same line here.

If what they sent were contract sales of land/house packages, I wouldn't use them as Sales comps anyway. Cost comps, yeah, not sales comps.

Are you talking about 10 houses or 200 houses in the subdivision? If I were them, I wouldn't provide a spreadsheet of the entire sub either. Use what they sent and find some other Sales comps.
 

Meandering

Elite Member
Joined
Feb 26, 2006
Professional Status
Real Estate Agent or Broker
State
Pennsylvania
Fannie requires at least one in the development, one outside the development, and one from either in or out of the development. So if they sent you at least one you can use, call it comp 3 and get two more from some other competing neighborhood. That builder will figure out very quickly, they can't chose the "comps" for you and keep all the other neighborhood information to themselves.

Go through the tax records and note what they show as sales in this new subdivision.

.
 

Amy Perkins

Senior Member
Joined
Jul 20, 2003
Professional Status
Certified Residential Appraiser
State
Tennessee
I have done hundreds of these and I did have ONE that refused to give any data. I will never forget it because it made me so upset; this is because they feel they have something to hide. Maybe they do and maybe they don't. I think there was something shady going on with this one but it was so many years ago I can't remember. They should give you a list and if they don't go to assessor data source and get the County records. They still need to get building permits, so you will have to get the GLA and site sizes from them if they aren't on the record, then knock on doors to get the upgrade information. Now here is what to say to the builder. If you can't give me any market data, I will have to piece it together by physically requesting all building records and getting data from the recorder's office. Market data is necessary for me to fill out the appraisal because of the 1004MC planned development section. Now I am going to have to go back to the lender and request more money to do the appraisal since you refuse to cooperate and I need two sources. This will cost your customers more for an appraisal and many appraisers will come out and cancel the assignment due to extreme difficulty. If this is over market appreciation or rising building costs; appraisers need to analyze this. It should not be a issue if that's what they are so worried about. Tell them you at least need the contract dates so you can add for the increasing market (if it is increasing). Any builder who refuses to give information is basically shooting themselves in the foot because we can't justify a higher value without the original contract date. I think what is going on is that some of these builders like to see how much you can afford and then make a deal. They might not be fair to their customers. What do they tell people that want to buy??
 

hastalavista

Elite Member
Joined
May 16, 2005
Professional Status
Certified General Appraiser
State
California
Like Resguy says, they are not obligated to provide you any information, but it is foolish if they do not.

Fannie's verification requirement for using newly sold homes from a developer's project is specific:

To meet the requirement that the appraiser utilize one comparable sale from inside the subject
subdivision or project, the appraiser may need to rely solely on the builder of the property he or
she is appraising, as this data may not yet be available through typical data sources (for example,
public records or multiple listing services). In this scenario, it is acceptable for the appraiser to
verify the transaction of the comparable sale by viewing a copy of the settlement statement from
the builder’s file.

When providing builder sales from competing projects that are not presently available through
traditional data sources, the appraiser must verify the sale from the applicable settlement
statement and indicate on the appraisal report that the settlement statement was the document
utilized for verification. Additionally, the appraisal must include discussion and analysis of
sales concessions and upgrades for the subject property relative to concessions and upgrades
for each builder sale. (For special appraisal considerations regarding condo projects, see
B4-1.4-03, Condo Appraisal Requirements, and B4-2, Project Standards.)​

So, unless you can verify these new sales from your typical data sources, there is a higher level of verification for builder-provided sales.

But, no requirement to share with you all their sales.
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks