- Jan 15, 2002
- Professional Status
- Certified Residential Appraiser
It is my understanding that utilizing new home comps can or can not be used in an appraisal depending on the "exposed to the open market" criteria. I am presenting this here because I constantly see appraisers utilizing "custom build" comps in their reports for other custom build appraisals. It seems that these sales are not "exposed to the open market" therefore are not suitable for use in the appraisal report. I prefer to use any and all re-sales in the area because they best reflect the market. Some times I see appraisers combining the lot cost and construction for one dollar price when they occured up to a year apart. It is my understanding that you can use new home comps (like Centex, Choice, Pulte, KB) only if they have models set up and offer variations of these models to any and all buyers. Custom home build jobs are private transactions and should no be used? What say yee?