Good morning! My husband and I bought a lot in January 2021 and would like to begin building a home soon. We applied for a construction loan recently. The bank sent our plans to an appraiser as they only loan 85% of the appraised value. We got our appraisal back yesterday. It had a lot of errors. We have purchased two homes in the past, so we have had appraisals done before without any problems, but never one for a new construction. So I don't know if this is typical or unusual. We are considering asking for a ROV considering the appraisal came back low and some of the errors are probably affecting value.
*there are four bedrooms (not three as stated in the appraisal)
*the home will be 2,051 square feet (not 2,063 as stated in the appraisal) I know this error was in our favor. But we still want it corrected.
*there will be seven rooms (not five as stated in the appraisal)
*all new stainless steel appliances will be included (refrigerator, microwave, washer/dryer, and disposal not check-marked on the appraisal)
*the home will be on a poured concrete slab (not crawl space as stated in the appraisal)
*the home will include natural gas service (this was not check-marked)
*the floor plans include a gas stone fireplace (not check-marked on the appraisal)
*we will have aluminum gutters (not check-marked on the appraisal)
On the Cost Approach to Value page, the square footage of the garage was listed at 659 sq ft but is actually 672 sq ft. The porches were not included at all in the cost to construct. They are 202 sq ft. Finally, we would like to request a data source in addition to “personal knowledge and local builders” for the cost approach to value estimate of $105/ square foot as the replacement cost of the home. Based on data from Marshall & Swift and Craftsman we believe that figure may be inaccurate.
Any thoughts? The proposed home appraised for $280,000. We were mostly surprised that he listed the cost to construct at $105/sq ft and based it only on personal knowledge and local builders. We are in Russellville, Arkansas. There is no way this house can be built for that. We got estimates from seven general constractors before we hired one. They were all estimating $120-125 easily. The Craftsman appraisal that I did was $292,000 and I don't believe that included the value of the land. But I am just a kindergarten teacher, not an appraiser. What do I know? Thanks everyone!
*there are four bedrooms (not three as stated in the appraisal)
*the home will be 2,051 square feet (not 2,063 as stated in the appraisal) I know this error was in our favor. But we still want it corrected.
*there will be seven rooms (not five as stated in the appraisal)
*all new stainless steel appliances will be included (refrigerator, microwave, washer/dryer, and disposal not check-marked on the appraisal)
*the home will be on a poured concrete slab (not crawl space as stated in the appraisal)
*the home will include natural gas service (this was not check-marked)
*the floor plans include a gas stone fireplace (not check-marked on the appraisal)
*we will have aluminum gutters (not check-marked on the appraisal)
On the Cost Approach to Value page, the square footage of the garage was listed at 659 sq ft but is actually 672 sq ft. The porches were not included at all in the cost to construct. They are 202 sq ft. Finally, we would like to request a data source in addition to “personal knowledge and local builders” for the cost approach to value estimate of $105/ square foot as the replacement cost of the home. Based on data from Marshall & Swift and Craftsman we believe that figure may be inaccurate.
Any thoughts? The proposed home appraised for $280,000. We were mostly surprised that he listed the cost to construct at $105/sq ft and based it only on personal knowledge and local builders. We are in Russellville, Arkansas. There is no way this house can be built for that. We got estimates from seven general constractors before we hired one. They were all estimating $120-125 easily. The Craftsman appraisal that I did was $292,000 and I don't believe that included the value of the land. But I am just a kindergarten teacher, not an appraiser. What do I know? Thanks everyone!