Only Builder Comps Support Contract Sales Price?

[ucbruin]

the problem with new construction is the sales price includes the builders profit (10-20%?). any existing sale doesn't have this. in my area, new homes lose 15%+ value the day the door is opened, like a new car. I've stopped even trying to do new construction unless I have all similar new construction-1st buyer sales.

I find this an interesting observation.

There were years when phase 1 purchased homes "appreciated" 10%-15% by the time phase 2 homes were offered for sale. And I'm talking time lapse of a few months, not years.

 

[J Grant]

If resale prices are higher than new home prices would be easy for appraiser to come in at, or above the SC price in a new house sale!

Too often that is not the case but its sure nice when new homes are appreciating , makes our job easy.