Last week, I attended the MetroTex Area Meeting in Anna, Texas, where the discussion focused
on new construction, current builder activity, and the relationship between builders and other
real estate professionals.
As an appraiser, I enjoy attending meetings like this because it gives me an opportunity to hear
how other professionals are looking at the same market activity I analyze every day from a
valuation perspective. We may all be involved in the same transactions, but builders, real estate
agents, mortgage professionals, and appraisers often approach them from very different angles.
Brian with Bloomfield Homes opened with an overview of current inventory in the Trenton area,
including available homes, pricing, financing programs, incentives, and options being offered to
buyers considering new construction.
From an appraisal standpoint, incentives, concessions, financing terms, upgrades, and other
transaction details are already familiar parts of analyzing new-construction sales. What I find
useful is hearing how those items are being presented and discussed directly by the
professionals working with buyers in the market.
Chris Jackson followed with a broader perspective based on more than four decades in the
homebuilding industry. Much of his discussion centered on relationships between builders and
real estate professionals, staying familiar with local inventory, using MLS information to follow
activity, and maintaining connections with professionals working in the same markets.
He also discussed his experience working with appraisers in new-construction communities and
keeping information from prior sales and closings available when appraisers needed relevant
transaction data.
That is something I can relate to from experience.
When appraising new construction, having access to reliable information about prior sales,
incentives, concessions, upgrades, and other transaction details can be very helpful. Some
builders and onsite sales representatives are very familiar with these requests and can provide
the information quickly. Others may not immediately know what is being requested, why it
matters, or who within their organization has access to it.
I would like to see more awareness of that process on the builder side.
Providing information to an appraiser does not mean influencing the appraisal or directing the
analysis. It simply gives the appraiser another source of information to independently verify and
consider. The responsibility for comparable selection, analysis, adjustments, reconciliation, and
the final opinion of value remains with the appraiser.
For me, that is one of the benefits of being involved in meetings outside of appraisal-specific
events. It is not about changing the way I approach an appraisal. It is about staying connected
to the broader market and understanding how the people participating in these transactions are
viewing current conditions.
Appraisers spend a significant amount of time studying sales, market data, contracts, and
property characteristics. There is also value in hearing directly from the builders, agents,
lenders, and other professionals whose activity helps create the market data we ultimately
analyze.
Staying engaged with the broader real estate community is simply another part of maintaining a
well-rounded understanding of the market.
WOW,Very wonderful