How Are Appraisals Done On New Builds?

[veracious]

I hope this is an appropriate question for the Mortgage Board.

I'd like to know how are appraisals done in a new construction development.

If the developer  has set the comps on a new build that has upgrades, how are other homes evaluated ?

In the past, some developers have set the comps with "friends or relatives" who purchased for their asking price, and henceforth

have set the comps for the development.

Are future purchasers then limited to the builders asking price for the same model of home without the upgrades ?

If not, how does the appraiser  justify their opinions on value ? Will all future homes built in the development  by a different builder or

the first builder be priced the same as the upgraded home that was recently sold ?

I'm new  at this so please forgive my ignorance. If you can provide any links for further learning, please do.

Thanks for any replies

[veracious]

Hi everyone,

Can anyone help with my questions? See above post and more questions below.

With the real estate and mortgage markets being as they are, appraisals have become more important than ever.

Has anyone had a new build with their financing provided by someone other than the builder?

Since the comp has to be a similar home that has SOLD in the immeadiate area, how does a buyer know the true value of a new build

in the early stages of a Master Planned Community?  Relying on the builders asking price ? This seems risky in today's marketplace.

What if the builder reduces his asking price to attract more buyers ?

Thanks for any replies

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ETA:   Are the appraisals always done with  a cost per square foot to build since the so-called price is known?