Proposed New Construction For Only The Exterior Of The Home

[Deleted member 130081]

Dup

 

[Deleted member 130081]

Dup

 

[J Grant]

Doing it this way seems right. I do have a couple questions about proceeding with it. If anyone can answer these it would really be appreciated.
I will be comparing the subject to completed single-family homes and then applying an adjustment factor?
In the subject's sales comparison grid, what would the right Quality and Condition for the subject be? The comparables will likely be Q4 C1 or C2, or if I'm comparing to the subject being Q6 C6 then going with the REO sales, or other really low-quality, probably Q5 C4 or C5 homes, in addition to an "adjustment factor" as a bonus adjustment at the bottom of the sales comparison grid?

Should I give the subject the room count provided in the construction statement, even though they won't be finished?

Thanks again for the help.

I will check on the legality of leaving it as a shell tomorrow and post an update.

It's "legal" as far as I know to leave a house as a shell, however in that shell state the house may not have a certificate of occupancy. So for the "as completed ", if in jurisdiction subject is located does not grant C of O until bath fixtures are in or whatever criteria is, make sure that is disclosed on report.

Regarding competence for this particular oddball assignment, first time I've come across one like it...that said, your uncertainty about how much sf to include, or what quality subject is and appropriate comps seem lost -: In the subject's sales comparison grid, what would the right Quality and Condition for the subject be? The comparables will likely be Q4 C1 or C2, or if I'm comparing to the subject being Q6 C6 then going with the REO sales, or other really low-quality, probabl y Q5 C4 or C5 homes, in addition to an "adjustment factor" as a bonus adjustment at the bottom of the sales comparison grid?

If location is waterfront and or high value area , are you familiar with the area? Ask yourself if the guidance on board will be sufficient for competence on this assignment.

 

[Mark K]

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 suspect that whatever reasons you would have had for turning the assignment down in the first place still apply. Send it back if you don't feel comfortable with it. If this is going to the secondary market (or the lender will try to send it there) it will probably come back and cause you endless grief.

I wouldn't be afraid to do it but I'd chose the scope and format and it wouldn't be on a F/F form.

BTW, my history with self-build jobs has been that in 3-5 years the owner will want to refi and it will still be little more than a shell. Only difference will be that its occupied and the owner used the construction money to buy a new truck and bass boat.

As to the legality of leaving it as a shell, that's not your concern. Any new construction job can be stopped at the shell stage for a number of reasons, usually financial. I've done hundreds of final inspections where the C of O hadn't yet been issued. I don't make the report subject to that.

 

[sebridges]

Crazy enough, but I had a "shell" appraisal come through today that I'm working on. It's a little different. The shell is an older house that is more or less stripped down, the buyer is combining the parcel with his neighboring parcel, and then the buyer has an estimate to make the shell on the new parcel like new. I'm giving it a Q4/C3 "like-new' on the grid and making it subject to completion of construction exhibits.

Anyone have any thoughts on doing it differently?

 

[J Grant]

Like new sounds like it could be C2-but that can depend on extent of remodeling and replacement. I take it Q4 reflects an average quality of construction? ( sorry, responding to the above post # 15 here not the original post of shell house)

 

[George Hatch]

I suspect that whatever reasons you would have had for turning the assignment down in the first place still apply. Send it back if you don't feel comfortable with it. If this is going to the secondary market (or the lender will try to send it there) it will probably come back and cause you endless grief.

I wouldn't be afraid to do it but I'd chose the scope and format and it wouldn't be on a F/F form.

BTW, my history with self-build jobs has been that in 3-5 years the owner will want to refi and it will still be little more than a shell. Only difference will be that its occupied and the owner used the construction money to buy a new truck and bass boat.

As to the legality of leaving it as a shell, that's not your concern. Any new construction job can be stopped at the shell stage for a number of reasons, usually financial. I've done hundreds of final inspections where the C of O hadn't yet been issued. I don't make the report subject to that.

Great answer, and spot on, IMO.

 

[Tim The Enchanter]

I would not play this shell game.

 

[sebridges]

Like new sounds like it could be C2-but that can depend on extent of remodeling and replacement. I take it Q4 reflects an average quality of construction?

It's a 50 year old farm house and I'd think you'd need to spend roughly 4 to 1 on the margin to get to C2.

 

[J Grant]

Oaky, if you think the level of replacement and remodeling is C 3 and quality is Q4, then find the most similar comps of C 3 and Q 4, if they exist in area , and make report subject to completion per specs.