Subdivisions, builders, and appraisers. I’m putting out a plea…builders please befriend an appraiser! Seriously, find a knowledgeable local appraiser and set up a relationship.
Of course Realtors are an excellent resource as well, but you would need to find one that is experienced in subdivisions, one willing to figure out what options in new construction would bring the biggest return or help with shorter marketing times.
Check out another of my posts on new construction:
Every town, sub-market (entry-level, green, luxury, etc.), and style property will have different factors that affect value. Appraisers do this all the time, and they typically cover a wider geographic area than a Realtor.
The reason for my plea is I’m working on an appraisal in a new subdivision and I wonder why this subdivision is even here? This little town is still plagued by foreclosures, geographically ill-placed on the southern border of NH with only one main road in, and low-end inventory. I should first say the surrounding towns are beautiful quintessential New England communities that are far more desirable, in which market conditions have been fairly average over the past year and with good road access. The market for the past 12-18 months (in most areas of southern New Hampshire) has been for entry-level properties that are either in great condition or of investor interest.
I’m sure the land was cheap for the builder and construction started well over a year ago, but the conditions even then were not so hot. The house is over sized for this town at 2,200SF with 4-bedrooms and 2.5 baths and has been on the market for over a year. Your typical home in this town is about 1,500SF and the median price over the past year was $160,000.
A good thing is the builder has only built 3 homes in this 12 lot subdivision so changes can be made…I wonder if the Realtor will help guide the builder into constructing smaller houses until the market improves. Anyway, the house is selling for far less than it should at $207,000 because it’s over built, and currently there is little interest for real estate in this town.
So I make this plea…get acquainted with a local appraiser. I’m sure appraisers could learn quite a bit from you too!
Just my thoughts. -Jenn
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