New, or just renovated

[uncle sam]

I do a lot of urban work where many of the old industrial buildings are gut renovated, what standards do the cities use to determine if when finished they are new or just gut renovated, I have always thought that to be considered new it would need a new foundation

 

[Tom D]

c2, if any part of that structure is not brand new, then c2. that's how fannie looks. our public records list the date that building was erected as the age. that is a dead give away it is not all brand new. i do see sometimes when the city says the rehab was done, but mostly not. most of these building are only an interior rehabs. let me say this you . with fannie, you have to make an adjustment on a new rehab c2 verse new construction c1. their feeling is that never lived is superior than a not lived in new rehab. so make an adjustment, even if small.

 

[glenn walker]

c2, if any part of that structure is not brand new, then c2. that's how fannie looks. our public records list the date that building was erected as the age. that is a dead give away it is not all brand new. i do see sometimes when the city says the rehab was done, but mostly not. most of these building are only an interior rehabs. let me say this you . with fannie, you have to make an adjustment on a new rehab c2 verse new construction c1. their feeling is that never lived is superior than a not lived in new rehab. so make an adjustment, even if small.

C-2 ratings are not applicable to Industrial or Commercial Buildings and a gutted building that has been rebuilt is not considered new property but one that has been extensively updated and remodeled. New construction is from a brand new foundation and up. On a residential house out here many complete renovations the existing foundation is left in place and its torn down to one wall standing and thats to by pass new entitlement fees as the City considers it a remodel and not new construction also the tax assessor does not re-assess the property
at new higher rates which they will do on a brand new construction.

 

[sputnam]

Cities or states will each have their own standards. The best thing to do is to explore what the standards are in your service area.

 

[glenn walker]

Cities or states will each have their own standards. The best thing to do is to explore what the standards are in your service area.

The standards of Brand New "V Extensively Remodeled or Updated Property are the same universally.
Like my father used to tell me when I was a Teen and in College you can't get her a little bit pregnant.
And trying to come up with ways to convince yourself or a buyer that an- old property no matter how much updating or remodeling is still a used property.

Now I agree Standards in a certain market areas may treat a extensively updated or remodeled property similar to a Brand New one but one is still brand new and the other is used. In Los Angeles there is such a shortage of warehouse space that a Highly Renovated and Updated Warehouse Building may sell for a similar price to a brand new one. We have also seen this is some housing markets where brand new homes were commanding no more money than updated resales.

Fannie Mae knew there are always some people who will do anything to get a vlaue up and thats why they placed the UAD constraints on what is a new C-1 "V" all the other ratings. People in the Commercial world all know used versus brand new and so this would not even be in the conversation.

 

[sputnam]

They aren't the same everywhere. We are professionals who assess properties in the context of their markets. Not in the context of some universal standard.

 

[glenn walker]

It's one of the few true Black and White answers in real Estate. Its either Brand New or its used and no matter how much Lip Stick you put on that old building it will never be new.

 

[sputnam]

It's one of the few true Black and White answers in real Estate. Its either Brand New or its used and no matter how much Lip Stick you put on that old building it will never be new.

Yep... sorry. I misread the issue.

 

[Sid Holderly]

The date on the assessor card is not always right. A few put a new build date on a totally renovated building, even though it is easily visible that the foundation and/or part of the building is older.Explaining a property is older than he listed build date is often hard to get through a reveiwers head. In this area most homes that list a build year of 1900 are 10 to 30 years older than that. If a property is rebuild from a fire where more than 50% of the assessed value was destroyed is more often t get a new build date when rebuilt on an old foundation.

 

[The Warrior Monk]

It's one of the few true Black and White answers in real Estate. Its either Brand New or its used and no matter how much Lip Stick you put on that old building it will never be new.

I disagree, because it would mean that any home using reclaimed materials can never be considered new.