Comments (244)
Thank you for reporting this comment. Undo
Sherrae Robinson

Great information! I’m currently deciding if I want to build or purchase and renovate. Thanks so much,

1 Like    
Thank you for reporting this comment. Undo
otto katz

We are in this process now, having just gotten last week the offer from the bank on the construction loan. They used 'vanilla boxes' for comps, nothing like what we're building. Therefore, the loan offered is $100,000 short of what we need, a 25% shortfall. Our architect wrote a very nice letter requesting a redo of the appraisal, using custom homes in the area for comps, and a broadening of the area. Meanwhile, we've asked the gc to ask his contractors to sharpen their pencils, and to come in with better estimates. Keeping our fingers crossed that this house can get started before too long, some day I do want to sit out on the balcony, coffee in one hand, Courvoisier cognac in the other, and the chocolate on the table. Some day soon.

Thank you for reporting this comment. Undo

Sounds like an interesting morning ritual.

Comparables are often an issue - it is one thing if you are doing higher end architectural and even more of an issue if you are doing alternative construction - the very conservative mortgage industry is stacked against innovation and that is why all the vanilla boxes. Mediocrity is the industry standard. Sometimes it is necessary to get creative so instead of saying we are using grin bins and structure foam to build we are using (field-formed) SIPs - which are more acceptable/common.

Many features a client may want don't count for much as part of an appraisal such as a carport (depends what part of the country) or a non-conditioned sun room.


Related Stories

Renovating The Construction Process: 7 Must-Dos Before You Start to Build
Involve yourself in the construction process of your new home or renovation and you'll save time and money in the long run
Full Story
Building Ideas 6 Steps to Planning a Successful Building Project
Doing your homework will ensure your home building or renovation journey is as smooth and stress-free as possible
Full Story
Renovating The Missing Link That Will Eliminate Budget Blow-Outs
If you are building or renovating you are probably a bit freaked out by the thought of budget blow-outs. This tip will save you heaps...
Full Story
Renovating Think Like a Builder: 5 Key Strategies to a Smooth Build
Establishing a great relationship with your builder is critical to a successful outcome. Here are a few things you'll need to know
Full Story
Project Of The Week Building a Home: 10 Decisions You Will Never Regret
While planning your build, consider these tips to ensure you end up with the house of your dreams, now and into the future
Full Story
Building Building Jargon Untangled for the Average Homeowner
These jargon busters will give you more confidence during the building process, and could potentially save you thousands
Full Story
Building Ideas 5 Industry Tips for Cost-Effective Building and Renovating
With budget the biggest constraint, how can you save money on building costs to afford the wow items you've been dreaming of?
Full Story
Building Ideas 5 Things Often Overlooked When Building or Renovating
These seemingly-minor considerations can make a huge difference during the renovation process
Full Story
Lifestyle The Places People Forget to Install Power Points
Keep your phone and tablet fully charged by installing sockets in all the right places
Full Story