Is a new house-build priced @ purchase or closing date?
1) I'm wondering when buying a new build house at phase 3 at price$570K. Is that the appraised price of the house at closing date or purchase date?
2) Also is it possible to sell a new-build place on papers without loosing money?
Most places are appraised at closing by the bank, however if it's a purchase to financing deal (ie you didn't pay cash for it) the appraisal somehow "magically" seems to come in right around the purchase price, unless you really overpaid.
The purchase price is the major determining factor.
Of course, if it was somehow clear title, the appraisal comes in at fair market price more often than not...unless you get an appraiser who is trying to cover their butt.
I usually purchase properties well under market, and have a clear title (I buy on a line of credit first) about 2/3 of the time I get a fair appraisal, the other 1/3 I get a very conservative one (it's hard for some appraisers tonsay it's worth upwards of 50% more than the purchase price even with renovations, so they go with a lower amount).
With a purchase depending on financing, I've never really seen it come in more than about +/- a few thousand relative to the purchase price.
It's just the way the game works.
As for the second part, I gather you're talking about flipping the purchase of a presale during your, usually 45 day, grace period between completion and final payment. Yes, you can do this however it doesn't work very often because yours isn't the only one coming on the market at the same time and you're usually not the only one trying to do this. The results are a glut of highly motivated sellers all trying to dump their property at the exact same time before they need to come up with the money.
Last edited by Just a Guy; 2017-01-08 at 12:12 AM.