New Build Appraisal Question

GLIGUY23 — Mon, 12 Aug 2013 21:35:41 GMT

I was curious as to how is the appraisal price determined on a new build considering that home prices have gone up. the builder mentioned the appraisal should come in fairly close to the selling price.

Our builder was allowing 18% in upgrades before any additional earnest money was needed to cover upgrades. Meaning if I bought a $200K home I was allowed 36K in upgrades. Meaning the total selling price is $236K.

If I bought a base home with no upgrade I paid 200K.

If I bought the same house and took Max upgrades allowed I paid $236

Since we signed our contract the Base price on our floor plan has gone up $10K.

Where will we see the "instant equity/price increase" ?. Will that be visible in my appraisal or is this something that we see in the next new neighbors appraisal? Meaning that as newer owners come in they are driving the price of the neighboorhood up since they are paying a higher price of admission?

Re: New Build Appraisal Question

Anonymous — Mon, 12 Aug 2013 21:59:02 GMT

You may see it in your appraisal. We signed our contract back in January and are just now closing at the end of this month. We are paying 397k for the house and the appraisal came in at 448k. They used comparable houses in the neighborhood based on size. None of them were actually houses that my builder had just done. Mostly I think cause ours is bigger than most of them.

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New Build Appraisal Question

Re: New Build Appraisal Question