Case Studies

We have provided new construction appraisal packages (NCAP) for appraisers across Southern California.

As the housing market moves forward, each and every sale can drastically impact the trajectory of future sales prices and phase increases. The NCAP assures that the highest quality appraisals will be completed each and every time.

These are a few of the hundreds of new construction appraisals we have assisted on. In all of these scenarios, the appraiser—out of frustration, lack of verified data and limited information—reached out to our office for assistance.

The projected losses are based on average costs of renegotiated contracts at 2.5%, and average cost of lost sale from original contract of 4.25%.

TAYLOR MORRISON-WESTRIDGE
Sycamore Hills—Upland, California

145 lots | 27 sold | 11 closed sales

We assisted the appraiser on lot 93 and 109.

Lot 93 had a contract price of $569,494.

The appraiser contacted us in frustration with the sales office package, and inconsistencies noted in closing costs, options, credits, and the lack of data outside of the development. The sales office appraiser package didn’t include vital appraisal data including; APN#s, census data, document #s, flood data, plat map. Understanding Fannie Mae requires 1 sale outside the development to be included in the report. Our NCAP reconciled all inconsistencies in the details of the internal sales and provided a handful of closed sales from verified competing developments in Upland.

POTENTIAL COST OF RENEGOTIATION: $14,237
POTENTIAL COST OF LOST SALE: $24,203

Lot 109 had a contract price of $532,698.

Similar to lot 93, the appraiser contacted us in discrepancies noted in the CRMLS listings and 2 of the comparable sales inside the sales office appraiser package. Additionally, the appraiser had no sales outside the development that supported the sales price. Our NCAP confirmed the MLS data was correct and provided 7 sales form identified competing developments in the market area.

POTENTIAL COST OF RENEGOTIATION: $13,317
Potential cost of lost sale: $22,640

RICHMOND AMERICAN HOMES—CREEKSIDE
The Ranch—Wildomar, California

94 lots | 89 sold | 62 closed sales

We assisted the appraiser on lot 17, which had a contract price of $453,154.

The appraiser reached out to us as a result of the sales office providing all two-story sales to support the single-story subject sales price. Additionally, no comparable sales data outside the development was included. Our NCAP provided verified single-story comparable sales within and outside the development, as well as competitive analysis for time adjustments over the development lifeline. The resulting appraised value was $455,000.

POTENTIAL COST OF RENEGOTIATION: $11,329
POTENTIAL COST OF LOST SALE: $19,259

The Rilington Group-Domani
Palm Desert, California

202 lots | 23 sold | 8 closed sales

We assisted the appraiser on lot 27, which had a contract price of $309,000.

The appraiser contacted us as a result of the sales office having no appraisal package whatsoever. Our NCAP provided verified 55+ community sales within and outside the development. A market analysis and market conditions report were developed, as well as a report of all competing 55+ in the market area. Also in the NCAP, all vital appraisal data including; APN#s, census data, document #s, flood data, plat map. The resulting appraised value was $309,000.

Potential cost of renegotiation: $7,725
Potential cost of lost sale: $13,133

KB Homes-Bella Cortina
Moreno Valley, CAlifornia

159 lots | 32 sold | 18 closed sales

We assisted the appraiser on lot 57, which had a contract price of $434,748.

The appraiser contacted us in frustration with the sales office package, and inconsistencies noted in closing costs, options, credits, and the lack of data outside of the development. The appraiser also indicated accessing the property was a nightmare as a result of the sales counselor being out of the office during office hours, and the giving the appraiser a hard time for not scheduling an appointment. The sales office appraiser package didn’t include vital appraisal data including; APN#s, census data, document #s, flood data, plat map. Our NCAP reconciled inconsistencies in the details of the internal sales and provided a handful of closed sales from verified competing developments in Moreno Valley. The resulting appraised value was $435,000, after stating he was going to bring the value in at $410,000 without the NCAP package.

Potential cost of renegotiation: $10,869
Potential cost of lost sale: $18,477