Where on the grid to make this adjustment?

[Dublin ohio]

You seem to be saying that a one-year old comp shouldn't be used for a similar new construction home

What I find the vast majority of the time. A 1 or 2 year old home that resells that soon is usually atypically motivated, relocation, divorce, family situations (have to move to take care of mom or dad).

 

[J Grant]

What I find the vast majority of the time. A 1 or 2 year old home that resells that soon is usually atypically motivated, relocation, divorce, family situations (have to move to take care of mom or dad).

Not always, but even if that is true, it still competes against all other homes, including new homes - and in a strong market, a one or two-year-old home with a motivated seller, will sell for a good price

A variety of motivations is present in sellers, including divorce, family situations or relocation - they are not exotic or odd. motivations that always meet the threshold of atypical, unless that particular seller is desperate.

A builder, on the other hand, has a set of motivations specified to their business that an individual seller typically does not have. Thus we can see builders at the end of a cycle sell the remaining homes cheaper to get rid of them, or able to overcharge for houses by slowly releasing stages to make an inventory "shortage".
Such as when builders release a new phase and jack up the price 10% over what it was a month ago - when the open market has not risen 10% in one month!

 

[Dublin ohio]

Seems to me that those that don't like the idea of comparing new builds to new builds are also the ones that dislike builders the most

 

[J Grant]

How i

Seems to me that those that don't like the idea of comparing new builds to new builds are also the ones that dislike builders the most

I've done hundreds of new home appraisals. I always use new home sales as comps, and also resales. What made you assume we don't use new home sales?
It is not about liking or disliking anybody, including builders.

 

[Dublin ohio]

How i

I've done hundreds of new home appraisals. I always use new home sales as comps, and also resales. What made you assume we don't use new home sales?
It is not about liking or disliking anybody, including builders.

I didn't say you didn't use new builds and your dislike of builders has been quite evident in numerous posts. Just an observation.

 

[J Grant]

I didn't say you didn't use new builds and your dislike of builders has been quite evident in numerous posts. Just an observation.

Why in the world would I dislike builders? I usually never meet them- at new home communities I deal wit the reps or admin assistant in the sales office - just because I recognize that builders can overcharge for premiums that the open market may not support does not mean I "dislike" them -sometimes I use sarcasm for entertainment value

 

[Terrel L. Shields]

you think a custom-built house with a gold-plated toilet ordered by a crazy person is worth versus a house with a typical ceramic toilet?

That does not describe the usual "add on" features sold with houses. The typical package is priced in competition with other builders. Floor covering choices- tile, laminate, carpeting, do you want a fireplace or not, do you extra cabinets or not, do you want better appliances or "contractor" grade? Solid interior, six panel or hollow core doors? Some are perhaps market invisible in a later resale. But they are not invisible in the sale of new housing. They cost something.

 

[Mike Ault]

Gold plated toilet doesn't sound "generic" to me and why all of the hyperbolic comparisons. Gold plated toilets, underground shooting ranges, indoor basketball courts. Always the extreme comparisons that are typically "one offs".

Simply testing the reasoning behind the argument. We are the "Appraisers Supreme Court" around here, you know....

 

[Sadie]

On new construction homes, lately I have been asking for contracts on comparables when the opportunity presents itself. I do not know where to make the adjustment for differences in options selected on the grid. I have a comparable, very similar floor plan and GLA on the same cul-de-sac that sold for $30k more than the contract price of my comparable. I got the contract and options selected were ~90k for comparable compared to ~70k for subject.

Completely separate assignment but same question, where on the grid: Subject property has primary bedroom on second floor along with all the other bedrooms, some comparables has the primary bedroom on first with all other bedrooms on second. There is a very clear difference in pricing for this. So where would I put this adjustment if say all comparables and subject have the same amount of rooms??

First time posting on here, so please forgive me

You can make the primary bedroom adjustment either on a separate line like JGrant suggests or put it on the design line. Either way you need to explain it.

 

[Sadie]

Simply testing the reasoning behind the argument. We are the "Appraisers Supreme Court" around here, you know....

Not sure if that is a compliment.