I thought it would just be a formality, but now the bank has appraised our planned house for much, much less than it will cost us to build it. The low appraisal was blamed on the lack of single family comps in the neighborhood. Most of the recent construction and sales have been condos and townhomes. Many of these townhomes have even been much more expensive than our planned home, but that does us no good for appraisal comps.
Now it is time to rethink the game plan. Do we shop around for a more willing lender with a more sympathetic appraisal (probably not too smart) or do we somehow find a way to cut our construction cost by over a third so that the budget will be within the current appraisal?
As much as I would like to forge ahead with the current plan we are getting a clear message from our bank that this house on that lot at that price is not a good investment.
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Sorry to hear about the trouble w/ your bank. For what it's worth, I've come across Andrew Reid's name in a few articles relating to
prefab financing.
You need to call the banks that are financing the development going on in the area. There are signs with the contact persons info proudly displayed. They already know what the area's worth.
Which bank are you having problems with?
Try some of the banks proudly displayed on the signs of developements in the neighborhood. Those contact persons should be able to help you. They already have an understanding that the property has greater value after construction. It'll probably be a smaller bank.
That's good news. I'm am a Germantown resident that can't stand you and knows this abomination you've planned is ill-conceived and just plain stupid, like you. Maybe the cold, hard economics of this cluster-fuck will finally save us!
Thanks Anonymous, I love you too.
Sorry to hear you're getting so much resistance from the government and some neighbors. It's amazing to me that people think everything should look alike (and that they should get to say what that is). I love the Hive homes, and I hope you get all the problems sorted out quickly. Best of luck!
Yeeee-frickin-ha!
Sad to hear, I hope you will be able to work this out. Nashville needs more modern houses!
We are working on a few things to try to get the appraisal and the construction costs to match up more closely. I am still annoyed that the banks have such odd rules for appraisals - they can't use the high-end townhomes nearby for comps but they will use single-family crackhouses from a different neighborhood as a comp.
We would go ahead and build with alternate financing if it weren't for the remote possibility of having to move sometime and then the potential buyers would not be able to get a realistic appraisal.
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