|Re: Construction Loan Financing (appraisals/resale)||<– Date –> <– Thread –>|
|From: Jim Snyder-Grant (danasgnewview.org)|
|Date: Thu, 25 Feb 1999 10:00:32 -0600|
Just a comment about appraisals and resale values, based on the quoted exchange below between Denise & Rich: At New View (Acton MA), we also had appraisals less than construction costs. As houses sold at their real-cost prices, people that got later appraisals for individual mortgages (and later, refinancings) saw appraisals that reflected the actual comparable neighborhood house prices. Later, when we had our first resale event, the sale price easily matched the actual cost plus some home improvements the owners made plaus some interest. At 11:06 AM 2/19/99 -0600, you wrote: >Denise Meier wrote: > > >they required 20% of the APPRAISED value of the project, which was >considerably less than the COST of the project. We each (except for the >two subsidized low-income units) ended up putting in 35% of our projected >purchase price, plus paying for upgrades and change orders in cash. > > >Denise: I hope you meant "... which was considerably *more* than the COST of the project...". > >If your project appraised for a lot less than the cost, the permanent financing (or 'take out' loans) for each house would only cover a portion of appraised value and you would have to have a significant cash down payment. Could be done, but would not bode well for resale values. > >Rich Lobdill >Tierra Nueva Cohousing. > -Jim Snyder-Grant, using my wife's email to belong to cohousing-l. It is more relaible to reach me at jimsg [at] newview.org (home) or Jim_Snyder-Grant [at] lotus.com (work)
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