New market conditions requirement

[lynnhend]

I have a new construction assignment, all are builder sales, no info on MLS. Even expanding to 5 nearby towns there are only 5 similar and competing new homes. I have no idea how to do analytics for this. Any ideas most appreciated. Thanks. Lynn

 

[glenn walker]

Unless your making big $ or just want a learning experience I would consider calling in sick.

But if you want to proceed there should be others on here that will be on shortly to help you out.

 

[Tim Hicks (Texas)]

Stating the data is too limited to do analytics is only the truth. I have had a few rural properties where True Tracts has said there is not enough data to do monthly market trends. The truth is the truth.

 

[glenn walker]

Stating the data is too limited to do analytics is only the truth. I have had a few rural properties where True Tracts has said there is not enough data to do monthly market trends. The truth is the truth.

True I just wish the GSEs knew it.

 

[Surf Cat]

Is the new construction in a development? Or, was an older dwelling razed with a new dwelling built?

Whichever the case, with such limited data, I would do a market analysis on the subject's immediate neighborhood including recent sale prices of "the most similar" properties in size, bed & bath count & lot size in the area. Then, another analysis of the market area including all the sales within the last 12 months and base you overall market trend off that.

Of course explaining the lack of new builds within the immediate and alternative, competitive neighborhoods. That's about the best you can do..... no one else is going to magically find what you didn't.

If the subject is in a PUD, go to the sales office and get a printout of the last year of sales (if they'll give it to you) and do an analysis of those (list price, sales price, DOM, etc.)

Good luck!

 

[Tom D]

Your analysis is based on the neighborhood, not just some new homes. If the neihgorhood is dead, then report stable, but dead. Without the MLS how are you getting accurate info on the comps. That would stop me.

It's like the 1st new house in the neighborhood. There is no historical data. The issue typically is it being the highest sale. And how much more the higest price than one below it.

This is another post without enough info to give any thing better than a guess answer.

 

[Fernando]

Before taking the assignment, didn't you know what you were up against?
If you didn't have experience in such a case, you better learn quickly (to be competent).

 

[J Grant]

You need some resales, C 2 if possbile homes built within the last several years to help analyze the new home prices and compare resales and or listings exposed to open market vs offered from builder.

 

[Jerry Bone Jr]

there are only 5 similar and competing new homes

Five data points is good enough. Think about the "gold standard", matched pairs. It takes two data points to create a matched pair.
If needed expand your definition of "similar and competing" in order to find more sales.

 

[shrubberyvaluation]

Removed