Building for Appraisal Value?
mockingbirdjones
6 years ago
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Alan Lnu
6 years agoworthy
6 years agoRelated Discussions
How do Appraisals Work on Building a New Home?
Comments (3)The bank believes the house will end up costing you $153,000 to build. They require 20% for a down payment, which is how they came up with the $30,600. ($30,600 is 20% of $153,000) In order to borrow $140,000 you would need to be building a house that would cost $175,000 and you would need a down payment of $35,000. How much did you think the house was going to cost to build? How much do you have for a down payment?...See MoreAppraisal Value a Good Deal?
Comments (30)Most people wanting to buy are not going to be able to pay cash and avoid a mortgage.... if she tries the same tactics with someone else trying to buy the house AND get a mortgagae it is going to blowup in her face-- she cannot control who is going to do the appraisal for the mortgage company like she did the second appraisal... that house is going to be on the market a while MOST people would have reservations about buying at full value--her asking price--with the mold history. IF you don't find another house you like better in a month or so--that one is probably going to be onthe market...BUT you are going to have to use an agent to buy it... she won't want to deal with you and all you know on a second negotiation... Our situation was somewhat similar.. the house we are currently living in we bought about two years ago when the market/economy was starting to go sour. Our market in DFW had stayed strong longer than most and there was still competition in certain areas for new homes on market. We made offer on this house which the comps showed was overpriced and the sellers (who had built the house) argued that our offer was too low. They said it would cost more to rebuild the house... we said we would pay for appraiser to get 3rd party opinion. We got someone who was familiar with local area--had been past president of the RE assoc before becoming an appraiser...he took comps from past year of homes in neighborhood--some were foreclosures because this neighborhood has some real issues with topography and the economy had hurt sales-- it is also he most expensive neighborhood in this town--the last open land to be built on. Well the appraisal came in with a substantially lower value--done three different ways-- one was at least 30K lower than what seller wanted... he refused to budge off his price more than 10K--and my husband wanted the house we were paying cash as well...and we were the first/only people to offer on it because it was new on the market too. I would have preferred to wait but not my husband... so we bought the house...for more than the appraisal-- really frustrated me because I don't think we will see that money when/if we go to sell.. Frankly I think the house would have sat here for long time...there are houses in the neighborhood that have been on the market for over a year and not sold... There are reasons why this house was a better buy than the others but the appraisal was pretty spot on since most homes up for sale are trying to hold to the higher price per sq ft and people are not buying......See MoreInsurance & bank appraisal way out on new build
Comments (32)Lora: Your great views and lot size have nothing to do with the insurance value. Insurance only covers replacement of the home and does not insure the land. Take this a step further, my insurance policy states it does not cover the portion of the home that is under ground. (Do other policies say this also, this policy was with a very large carrier in the USA.). To me, this means the footings, the underground plumbing and electrical, as well as the septic tank, are not covered. In my case, this is approx $25k in building costs (due to expensive foundation). I would have assumed that the 'cost to build' that my insurer calculated would have been much cheaper, given the fact that they are not really insuring the entire home,but instead only insuring the above ground portion of the home. But also in my case the insurance company came in with an estimate of at least $100k OVER our actual cost to build, and our cost also included the foundation, septic system, etc. All I can say is, shop around. Just recently, I switched carriers after having lived in the home awhile and got a new carrier that came up with a cost-to-build approx $50k lower the the first carrier. ---------------------------------- An open question to the insurance pros on this forum....what is the deal with max amt of deductible allowed for most mortgage companies? One of the insurance agents said mortgagers require no more than a 500 deductible. He squawked when I tried to raise it. I ended up switching carriers and got a 1000 deductible. But was wondering about increasing it more . (Am afraid to contact lender to ask in case they say it is 500 and make me lower what I already have.) I read my lender paperwork and it does not give an actual deductible requirement....See Morewhat really affects a home's appraisal value?
Comments (4)The appraisal helps determine your municipality taxes, hence the size of the building and lot within the neighbourhood are more important than the house's finishes and landscaping....See MoreDavid Cary
6 years agocpartist
6 years agoDenita
6 years agolast modified: 6 years agoPatricia Colwell Consulting
6 years agoUser
6 years agohomechef59
6 years agochiflipper
6 years agolast modified: 6 years agosuzyq53
6 years agoNaf_Naf
6 years agobry911
6 years agolast modified: 6 years agoMark Bischak, Architect
6 years agolast modified: 6 years agoMark Bischak, Architect
6 years agoVirgil Carter Fine Art
6 years agobry911
6 years agolast modified: 6 years agokudzu9
6 years agoVirgil Carter Fine Art
6 years agoMark Bischak, Architect
6 years agomockingbirdjones
6 years agomillworkman
6 years agocpartist
6 years agoUser
6 years agolast modified: 6 years agohomechef59
6 years agolast modified: 6 years agoUser
6 years agolast modified: 6 years agoK Laurence
6 years agoUser
6 years agoAlan Lnu
6 years agoPatricia Colwell Consulting
6 years agoJudyG Designs
6 years agolast modified: 6 years agokudzu9
6 years agoRaiKai
6 years agolast modified: 6 years ago
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