Thursday, October 28, 2010

New Appraisal Guidance for New Homes

The National Association of Home Builders (NAHB) welcomes the Federal Reserve’s new interim rule on appraisals.  The association has long worked for an appraisal process that provides transparency and flexibility for the unique challenges of valuing a new home.

“The interim rule makes it clear that home builders and others can ask an appraiser to consider additional information about a property, including information about additional comparable properties,” said Joe Robson, NAHB’s immediate past chairman.. “That’s critical to our members because in far too many cases we’re seeing appraisals based on inappropriate comparables," Robson added.

“Many appraisers do not understand the impact of new code requirements, new green building practices and other aspects of new construction that add value to a home,” Robson said. “It is particularly important that home builders be allowed to provide appraisers with information to assist in appraising new construction."

The rule will take effect 60 days after it is published in the Federal Register, with the Fed accepting comments during this period. Compliance is voluntary until April 1, 2011. The Fed’s action was required by the Dodd-Frank Wall Street Reform and Consumer Protection Act, which was signed into law on July 21, 2010.

If you have an interest in new home construction, in central New Jersey, Mercer County, and surrounding townships, call or email me.  I know the builders, the developments, and the buyer incentives waiting for you to buy a new home.

Joe Giancarli, SA
Real Estate Advisor

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