Pool or no pool

[Wm. Hattaway]

I have been asked to appraise a new construction SFR. My appraisal inspection yesterday shows it is currently about 95% complete (appraisal will be subject to completion). I was sent the "full contract" as stated on the first page of its 62 pages. It's a standard contract between the developer/seller and buyer. There is a hand written line on the fax cover page to someone named Michael that says "you already have the pool addendum". No mention of an in ground pool in the contract I have neither was the pool started yesterday when I was out there. I call the builders rep and he says that there is an in ground pool to be built after closing but it's a separate agreement apart from the contract I have a copy of. It appears to me to be an incentive to close the deal. Would you appraise the home with or without the pool? Thank you for your comments. Bill.

 

[Wendy]

Before doing anything, I'd get a copy of that addendum & agreement for the pool.

 

[Ray Miller]

Before doing anything, I'd get a copy of that addendum & agreement for the pool.

yep, you got to have the entire contact. Makes no difference if it is being put in before or after closing. If it part of the contract it is part of the contract.

 

[Wm. Hattaway]

After much hem-hawing with the builder for the addendum, I was able to find out who Michael was from the fax and called him directly for the addendum (which he sent). Yep, it’s a free pool to be built after closing by the developer. It was a special they ran back in June to move inventory. Thank you Wendy and Ray for the help. Bill.

P.S. Be careful people; if not for a hand written side note on the fax cover sheet the appraiser would never have known about the pool.

 

[Wendy]

Wow. That's a pretty significant extra - beats the heck out of a bonus plant shelf.

Good job.

(what a fine case to illustrate just how sneaky new builder construction can be)

 

[Mike Siegfried]

Good catch. You gotta watch these guys every second. Makes you wonder what we're missing even when we have a fully executed contract. I know an appraiser who just asks the realtor for the sales price and contract signing date over the phone. Geez!

Mike