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Uad And New Construction

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Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
Just like to know how other appraiser handle fields on the 1004 for new construction and not be misleading and still be UAD compliant. Lots of information is not available for new construction or has yet to be recorded. Some of the fields will accept TBD (To Be Determined) like: Legal, Parcel #, etc. But how about the fields that do not, like property tax, site, HOA, etc. How about: "Is the subject property currently offered for sale... " when the specific property in question has never been listed or marketed because it is part of a new development? How many DOM?

I know explain in the addendum, but what do you put on the form not to be misleading?
 
D

Deleted member 134708

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Site size I get from builder, HOA, etc.

Listed for sale I say yes. "Offered thru sales office etc" DOM I put 0. I explain why it's zero. Was bought before built.

I've always been able to get all the needed data from the builder, contract. If taxes still show like $20,000 due to taxing the whole PUD, I'll show that and just explain.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
what do you put on the form not to be misleading?
If you put in a dummy number, it is a lie if no one reads it? You know, like in the forest when a tree falls if there isn't anyone around does it make a sound?
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
If you put in a dummy number, it is a lie if no one reads it? You know, like in the forest when a tree falls if there isn't anyone around does it make a sound?

So that is the question! Do you have an answer?
 

Riick

Elite Member
Joined
Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
So that is the question! Do you have an answer?
If a tree falls in a forest, and no one is there to hear it, is it still a MAN's fault?
 

Ariba

Senior Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Colorado
If you put in a dummy number, it is a lie if no one reads it? You know, like in the forest when a tree falls if there isn't anyone around does it make a sound?

If a tree falls in a forest, and no one is there to hear it, is it still a MAN's fault?

Great riddles, but can you answer the question? Probably not!
 

Tom D

Senior Member
Gold Supporting Member
Joined
May 22, 2015
Professional Status
Certified Residential Appraiser
State
Pennsylvania
if it were just a non MLS, builder's office on site you can always put the name/base price of the model they are buying on the listed line and call it a generic listing. i agree with dom could be '0'. my feeling is to leave it blank if you don't know, and let the lender, title report, give you an answer. nothing wrong with 'to be determined'. most builder's rep seem to have the answer's unless it's just starting. we have industrial sites where there are new townhouses going in. some agents are excellent, and some are in lala land. never really know if the zoning has changed, big city, big lag in their systems.

Great riddles, but can you answer the question? Probably not!

you can always use an 'extraordinary assumption' comment that 'if you were there than you would have heard the tree fall, if it fell.' 'if i was there, i would have heard the correct number if the builder gave an answer about my question asked'
 

jay trotta

Elite Member
Joined
Feb 8, 2004
Professional Status
Certified Residential Appraiser
State
Connecticut
Just like to know how other appraiser handle fields on the 1004 for new construction and not be misleading and still be UAD compliant. Lots of information is not available for new construction or has yet to be recorded. Some of the fields will accept TBD (To Be Determined) like: Legal, Parcel #, etc. But how about the fields that do not, like property tax, site, HOA, etc. How about: "Is the subject property currently offered for sale... " when the specific property in question has never been listed or marketed because it is part of a new development? How many DOM?

I know explain in the addendum, but what do you put on the form not to be misleading?

In general, I use the spec sheet with the caveat, anything can change during the build cycle based on the Buyer walk thru on progress; Taxes can be estimated & based on the similar products being used, with Notice they can change also. Your future value is being based on supplied information, but there are also Options that can take place, and generally due (at least in my area). IMO, because there are "options" available, and if you can generate the greater similarities in the comps. at that time, I don't see the misleading part, as the product is not complete at the time of inspection. Don't know how quickly they complete housing in your area, here most run about 6 months and the end run considers more recent data, but should be within reason of the original.
In our area, even when the construction is completed, it may lead to a partial Tax Billing (70-80%) and the 100% may not take place until the following year, it depends on where you are in the tax cycle. New Construction requires a lot of estimated figures, due to changes that can and more than likely will occur, UAD is a square peg in that process, IMO.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
Site size I get from builder, HOA, etc.

Listed for sale I say yes. "Offered thru sales office etc" DOM I put 0. I explain why it's zero. Was bought before built.

I've always been able to get all the needed data from the builder, contract. If taxes still show like $20,000 due to taxing the whole PUD, I'll show that and just explain.
I do it pretty similar to Nottrav

Here's a comment from a new construction condo I did in December (it was a $1mil+ condo, thus the higher property taxes):

"Note regarding subject's taxes: Subject's 2016 R.E. Taxes noted at the top of page 1 are an estimate based on the County Property Appraiser tax estimator. This estimates a range between $17,331.13 - $20,389.56 (see attached). The appraiser is using an approximate estimation of $18,500.00 for this report. The appraiser reserves the right to amend the actual tax for the subject property if more viable information is provided. At this time, this is the most current available tax information." I also then attached the estimated tax sheet from the County
 

Theresa522

Freshman Member
Joined
Oct 10, 2007
Professional Status
Certified Residential Appraiser
State
New Jersey
Just like to know how other appraiser handle fields on the 1004 for new construction and not be misleading and still be UAD compliant. Lots of information is not available for new construction or has yet to be recorded. Some of the fields will accept TBD (To Be Determined) like: Legal, Parcel #, etc. But how about the fields that do not, like property tax, site, HOA, etc. How about: "Is the subject property currently offered for sale... " when the specific property in question has never been listed or marketed because it is part of a new development? How many DOM?

I know explain in the addendum, but what do you put on the form not to be misleading?

I do a lot of new construction condominiums. We estimate taxes using the purchase price and the city's effective tax rate. We use the land's existing block and lot number (regardless of whether the land is being subdivided). If the property was never listed in the MLS, we get offering price from developer (if a property is being purchased, 99% of the time, there IS an offering price, regardless of whether or not it was in the MLS or listed on the open market); if DOM are unknown, you can put in "Unk." If developer cannot give an estimate of expected HOA fees (they normally can), then we estimate it based on comparable properties. Of course, all of this is explained in an addendum, so as not to create a misleading report. Lastly, I would NEVER complete an appraisal without knowing the site size - how could you put a value on a property without site size?
 
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