- Joined
- Jun 18, 2018
- Professional Status
- Certified Residential Appraiser
- State
- Minnesota
Hello,
I am working on an appraisal that the bank wants as an FNMA 1004. The property is vacant land right now except a well and septic system. The constructions statement is only for the completion of the exterior of the home. The interior will have concrete floors, and stud walls with in-floor heat tubes connected to propane. The owner plans on finishing the home himself in the years following the initial build of the exterior shell.
I have found a few sales of other "shell homes", they are fairly far from the subject and differ a good deal in size. Sadly none of the sales bracket the overall "above grade living area" of the home, as the subject is fairly large and there are relatively few shell homes that have sold recently(past 3 years). The comparables do bracket the land and water frontage.
I have a few questions that if answered, will hopefully help me and other people who view this forum in the future.
1.) Is the Quality line in the sales comparison approach applicable? Should I call the subject Q6 ? Or is it possible to put N/A in the quality line?
2.) I plan on using a reduced value adjustment in the "Above Grade Gross Living Area" section to give some value for the overall size of the place. I am going to accompany this with a comment explaining that this doesn't represent true living area as it is unfinished. Is this the right way to handle this? I am planning on listing the room and bathroom count of the subject and all comps as 0.
3.) I am planning on adjusting the condition line and actual age line of the sales comparison approach, with the subject being C1, and most other comps being C2, as they are mostly a year or two old only and not finished yet, is this right? If not, what would you do?
4.) Do you see any other problems with this type of assignment?
5.) Have you had an assignment like this before? Please share your experience.
I likely wouldn't have accepted this assignment had I known it was for the completion value of just the exterior of the home. It was sent to me as a conventional new construction assignment, which for fully finished homes I do regularly. I appreciate all the help anyone can give. Thank you.
I am working on an appraisal that the bank wants as an FNMA 1004. The property is vacant land right now except a well and septic system. The constructions statement is only for the completion of the exterior of the home. The interior will have concrete floors, and stud walls with in-floor heat tubes connected to propane. The owner plans on finishing the home himself in the years following the initial build of the exterior shell.
I have found a few sales of other "shell homes", they are fairly far from the subject and differ a good deal in size. Sadly none of the sales bracket the overall "above grade living area" of the home, as the subject is fairly large and there are relatively few shell homes that have sold recently(past 3 years). The comparables do bracket the land and water frontage.
I have a few questions that if answered, will hopefully help me and other people who view this forum in the future.
1.) Is the Quality line in the sales comparison approach applicable? Should I call the subject Q6 ? Or is it possible to put N/A in the quality line?
2.) I plan on using a reduced value adjustment in the "Above Grade Gross Living Area" section to give some value for the overall size of the place. I am going to accompany this with a comment explaining that this doesn't represent true living area as it is unfinished. Is this the right way to handle this? I am planning on listing the room and bathroom count of the subject and all comps as 0.
3.) I am planning on adjusting the condition line and actual age line of the sales comparison approach, with the subject being C1, and most other comps being C2, as they are mostly a year or two old only and not finished yet, is this right? If not, what would you do?
4.) Do you see any other problems with this type of assignment?
5.) Have you had an assignment like this before? Please share your experience.
I likely wouldn't have accepted this assignment had I known it was for the completion value of just the exterior of the home. It was sent to me as a conventional new construction assignment, which for fully finished homes I do regularly. I appreciate all the help anyone can give. Thank you.