- May 9, 2003
- Professional Status
- Certified Residential Appraiser
The subject property is a new construction production built dwelling in Bay Area, CA in a declining market where builder is paying for $77,000 of upgrades which is all the upgrades and giving $15,000 for non-recurring closing costs. The base price and final purchase price is $775,000. I seem to remember that one does not include upgrades unless they are financed. I am concerned that I am incorrect because current listings of the same model new construction home are going for around $656,000. At this point there is no way the purchase price is supported based upon the substitution principle. Anyone help on this regarding upgrades that are not financed?