Model comps

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shadyoc

New member
When the last model homes sell in a new community, do the phase one people get their homes comped the what the model homes sold at?  Assuming similar sized lots. 
 
I would think so.  Any realtor know since they pull the last three months comp, the model homes would be the nearest comp price-wise.
 
shadyoc said:
When the last model homes sell in a new community, do the phase one people get their homes comped the what the model homes sold at?  Assuming similar sized lots.
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Depends on who is doing the comping. An appraiser might, but the buyer market won't unless prices have increased in general.
 
USCTrojan or other realtors, have you sold any new community homes right after the models sold and if so, where they comparable in price?
 
lovingit said:
I would think so.  Any realtor know since they pull the last three months comp, the model homes would be the nearest comp price-wise.
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You can use the model home as a benchmark. Most model homes have top finishes and upgrades.

Isnt there another house in your community or around your area that recently sold that is not a model home?




 
Most times, the models are sold at SIGNIFICANT increases over comparable homes as the builders typically include high end finishes and showcase lot sizes to sell the rest of the homes. They also often include all of the completed landscaping and staged furnishings/artwork in their pricing.

A model-match home would have to adjust for those disparities and add/deduct for differences.

...and of course factor in other competing properties. With super-tight inventory right now, sellers are in the drivers' seat.

-IR2
 
IrvineRealtor said:
With super-tight inventory right now, sellers are in the drivers' seat.
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Seriously? With so much new inventory being brought online by the builders I see lots of resales sitting on the market for months with no taker. It sure doesn't feel like a seller's market to me.
 
I wonder if buyers of model homes can argue with the county that they overpaid compared to recent comps and get their tax base reduced.

Anyone try this?
 
aquabliss said:
I wonder if buyers of model homes can argue with the county that they overpaid compared to recent comps and get their tax base reduced.

Anyone try this?
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You'd think so since furniture and art shouldn't be subject to property tax.
 
I'm not an expert in RE sales, but shouldn't the last phase listing price by the builder right before the model home sales be more accurate comp?  Theoretically, even Phase 1 home final sale price can be as expensive as model homes if the buyer puts hundreds of thousands of dollars in options and upgrades, but they should not be added to the actual house appraised value...
 
irvineorbust said:
I'm not an expert in RE sales, but shouldn't the last phase listing price by the builder right before the model home sales be more accurate comp?  Theoretically, even Phase 1 home final sale price can be as expensive as model homes if the buyer puts hundreds of thousands of dollars in options and upgrades, but they should not be added to the actual house appraised value...
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Pretty sure all the options you put in will be reflected in the appraised value. It is one of the upsides of going outside of the builder (outside of just the lower cost of going third party vs. builder).  Furniture I would agree differs, but anything structural (including significant landscaping) if you pay for it, is embedded into the cost of the home.  Just like if you bought third party and bought a home with a pool, you paid more for that home because of the pool (can't discount your taxes by 50K to another home that didn't have the "pool"). 
 
La Vita model homes are starting at $2.5m.  So early phase owners will get $900k equity?
Capella model homes are starting $1.9m.  So early phase owners will get $600k equity?

 
But Capella pt 2 up the street will probably bring the price back down from what the Capella pt 1 model homes sell at.  So can you really compare it to the close to $2m price once the ones by the toll road start selling??
 
irvineorbust said:
I'm not an expert in RE sales, but shouldn't the last phase listing price by the builder right before the model home sales be more accurate comp?  Theoretically, even Phase 1 home final sale price can be as expensive as model homes if the buyer puts hundreds of thousands of dollars in options and upgrades, but they should not be added to the actual house appraised value...
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When I sold homes in the past, the appraiser didn't even take into account the remodeling costs I put into the house.  The comps they pulled were still based off recent sales within 3 months timeframe.  Buyers also use recently sold comps as a baseline without regard to the upgrades.
 
lovingit said:
La Vita model homes are starting at $2.5m.  So early phase owners will get $900k equity?
Capella model homes are starting $1.9m.  So early phase owners will get $600k equity?
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Do you have pricing for the models of other communities? Did Strada release yet?
 
IrvineRealtor said:
Most times, the models are sold at SIGNIFICANT increases over comparable homes as the builders typically include high end finishes and showcase lot sizes to sell the rest of the homes. They also often include all of the completed landscaping and staged furnishings/artwork in their pricing.

A model-match home would have to adjust for those disparities and add/deduct for differences.

...and of course factor in other competing properties. With super-tight inventory right now, sellers are in the drivers' seat.

-IR2
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So the Capella model 2+3 homes sold at $1.8m and the last non-model home is in escrow for $1.5m
Assuming early phase non view homes, purchased in the $1.3m range.  Can the early phases sell for $1.6m -$1.7m with full landscaping?
 
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