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About to be applying for a loan for a new construction, but naturally the bank will be sending out an appraiser with the drawings to equate it all against the land we'll be buying... but quite stressed about it all. Mainly in that what happens if the appraisal is far below the cost estimates from the builder, etc.
The bank manager is also wary about the house being round and because of that it's "unusual". The land has true 360 degree views and I think it'd be obvious to anyone looking at the land and drawings together that it's simply the best plan for the lot to take advantage of the views. But, alas, bank man is all wary about it being unusual and how it may not have a favorable outcome (he says he doesn't know, and I'm not sure he's not completely out of his tree myself).
Here's a link to a panorama photo stitch of the view, taken roughly from where the house will sit... shannonHeights.jpg ...and one of the drawings of the house.
So, I'm a little worried, the wife is stressing... is the fact that it's simply a round house going to negatively impact the appraisal on the house?... Can appraisals be appealed in any way? (I assume not)... also assuming that the recourse of an appraisal coming under the building estimates is simply taking it to the builder and seeing what needs to be done to make it for that price, and or change the plans. Is this correct?... Does the appraiser give reasons for knocking off value?...
Are appraisals for constructions low at the moment?...
About to be applying for a loan for a new construction, but naturally the bank will be sending out an appraiser with the drawings to equate it all against the land we'll be buying... but quite stressed about it all. Mainly in that what happens if the appraisal is far below the cost estimates from the builder, etc.
The bank manager is also wary about the house being round and because of that it's "unusual". The land has true 360 degree views and I think it'd be obvious to anyone looking at the land and drawings together that it's simply the best plan for the lot to take advantage of the views. But, alas, bank man is all wary about it being unusual and how it may not have a favorable outcome (he says he doesn't know, and I'm not sure he's not completely out of his tree myself).
Here's a link to a panorama photo stitch of the view, taken roughly from where the house will sit... shannonHeights.jpg ...and one of the drawings of the house.
So, I'm a little worried, the wife is stressing... is the fact that it's simply a round house going to negatively impact the appraisal on the house?... Can appraisals be appealed in any way? (I assume not)... also assuming that the recourse of an appraisal coming under the building estimates is simply taking it to the builder and seeing what needs to be done to make it for that price, and or change the plans. Is this correct?... Does the appraiser give reasons for knocking off value?...
Are appraisals for constructions low at the moment?...
...pah, it's all too hard.
We go through this quite a bit. And it usually goes over well. Is this design through the builder that is going to build it? or did you use an independent designer? If the appraisal comes back low and you used an independent designer, you can always take bids from more builders to build the plans. I do not think I have had one client come back with an off appraisal. If you need to, sit down with the builder and go line by line with his cost estimates to make sure they are correct.
Unusual home designs often turn out to be difficult to sell due to their limited appeal. If possible, the appraiser will attempt to measure any functional obsolescence due to unusual design by comparing the property to others that have recently sold in the area. If there aren't any sales, the appraiser must use judgment in making any discounts, if he or she thinks that it is appropriate. Sometimes this involves talking to builders, brokers, sales people, etc.. to try and measure the market's reaction to the unusual design.
Cost and value are typically two different numbers, esp. in this market. Good luck with your project.
We go through this quite a bit. And it usually goes over well. Is this design through the builder that is going to build it? or did you use an independent designer? If the appraisal comes back low and you used an independent designer, you can always take bids from more builders to build the plans. I do not think I have had one client come back with an off appraisal. If you need to, sit down with the builder and go line by line with his cost estimates to make sure they are correct.
the layout and such is all from us... so the contractor hasn't got any real hooks into us yet. He's just an above-board guy that was referred by a good friend that's also in the construction business. yeah, the whole "rethink the house itself and its costs" would be about the only real recourse. I'd just like to know if it's round-ness really is a negative factor towards the appraisal. This against the conversation with the builder as to how much un-rounding it will save on construction.
Thanks for your thoughts. Thoughts help at such times.
Unusual home designs often turn out to be difficult to sell due to their limited appeal. If possible, the appraiser will attempt to measure any functional obsolescence due to unusual design by comparing the property to others that have recently sold in the area. If there aren't any sales, the appraiser must use judgment in making any discounts, if he or she thinks that it is appropriate. Sometimes this involves talking to builders, brokers, sales people, etc.. to try and measure the market's reaction to the unusual design.
Cost and value are typically two different numbers, esp. in this market. Good luck with your project.
Thanks for the input. Is such information like "it's too round and strange so that devalued it" typically able to be received from the appraiser so we can be better armed when re-evaluating with the builder?
Thanks for the input. Is such information like "it's too round and strange so that devalued it" typically able to be received from the appraiser so we can be better armed when re-evaluating with the builder?
There should never be any "discounts" merely for the fact that the house is unreasonable.
Talk to your banker and make sure that they use an appraiser who specializes in complex and unusual properties. Not just any appraiser is trained and experienced in these types of properties.
There should never be any "discounts" merely for the fact that the house is unreasonable.
Talk to your banker and make sure that they use an appraiser who specializes in complex and unusual properties. Not just any appraiser is trained and experienced in these types of properties.
Schousse is right on target. An appraisal based upon an unusual design that "enhances the house/property", i.e., forever and gorgeous views should not be considered a negative during appraisal. The land you bought is beautiful, the design of the house especially with a lot of treated glass is going to provide a quality that potential buyers down the line will love: Forever views! I've found that to be a key selling point though, of course, living in a house like this you and your wife will probably never leave; God knows I wouldn't
Look at the house the movie Sleeper was filmed in - talk about an unusual design, but it took advantage of the beautiful mountain views in Colorado. Frank Lloyd Wright's designs were very innovative for the times and now, well everyone knows him but they were against the norm at the time. Remember the banker is a banker because he has a 'numbers' brain, not 'creative', so like Schousse said, just talk to the banker and get an appraiser who specializes in unique style homes - then once done you and your wife are going to be living in one gorgeous home!
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