Question for the Brianiacs---Your the Appraiser!!

[Elliott]

German builder has built 4, count them 4
essentially identical houses in the same
neighborhood. He sold 3 of them in
January 2002 for $110,000. The builder
was cashed out and didn't contribute to
any of the buyer's closing costs.

He is in the process of building/selling
House #4 and has a pending sale
for $115,100, FHA. And guess what?
He's going to pay $5150 of the buyers
closing costs!!

So what's the market value of House #4??
Would the value be different if it were FNMA?

elliott

 

[Pamela Crowley (Florida)]

Has your overall market increased in prices by 4.5%+/- since January??? Can the $115,100 be justified by other sales while still including at least one of the $110,000 sales on the street and at least mentioning the other two? If not, I would say it's worth $110,000.

 

[jtrotta]

Hey, he's contributing $50 out of his own pocket 8O you want more than that :?:

Has the cost of building supplies increased in any way :?:

Has his "Entrepnurial Profit" changed any :?: and can you tactfully prove it hasn't :?:

8)

 

[Richard Carlsen]

Depends on what the market says. The ones that sold for $110,000 may have sold below market levels at the time. He may have accepted less for a cash or large down payment buyer. If their time on the market was very low, I would tend to conclude that he had underpriced them.

 

[Terry Russell]

$110,000 and three bowls of sauerkruat at the concession stand. t.

 

[KD247]

Elliott,

Did you really say "German builder"?

I'm laughing to myself because I'm not sure what sort of picture that's supposed to paint. I guess if you had said Jewish builder or Mexican builder I could have figured out your stereotype.

Our market is crazy, still rising but poised for a crash, and I would love to think I was accurate enough to support 5% accuracy in any of my last few assignments.

Have a good weekend,

Koert (Dutch) DuBois (French) (but Scots on my mother's side!)