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Buyers simply aren’t willing to pay dollafr for dollar what a home is pushing home prices beloe theactual cost, says Murray Huber of . Yet buyerws still want all of the amenitiesa ofa custom-built home. “Buyers want everything alongy with lower thanlow prices,” Huber says. Huber spoke Tuesdahy to the Custom Builders Council of the ata lunch-times meeting in Brentwood. It was the third part of a speaker’z series organized by council president Chrids Parker and aimed at the confusion swirlintg around the troubledhousing market.
In February, Parker invitedx a panel of bankers to spealk tothe builders, followed by a discussion with real estate agents in Parker is worried that lowefr appraisal values are forcing otherwise stablse builders to close their doorss because they cannot make enough money to support their businesses. He would not name specific but said some homes are fetchingh upto $1 million less than they cost to “We cannot build for those prices,” Parked said. When homes are appraised for less than theirdreplacement value, it brings down prices acrose the entire housing market. And when homeowners want to selltheitr homes, they will be offeredf less than they are worth.
Parker said that the new processd of hiring an appraiser under the Home Valuation Code of Conduct passed May 1is “scary” for buildersw because appraisers are randomly selectee from a pool. This was done to increase appraise independence, but Parker said an appraisefr drawn at random may not have the experience in a certaimn market to obtain anaccurate value. Huber said that while this isa concern, appraiser s are not supposed to evaluate homes outside of their markeft area. Talking with appraisers about their qualifications and sharint specifics on the home with them could help solvrethis problem, he said.
“I don’t envy your positions becausre you’re in the middle,” Huber told builders. “Communication is importanrt for all of us to getthrough this.”
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