CarolinaMLS Introduces Custom-Built Construction Price Certification

By Debbie Wey
Vice President, CarolinaMLS Administration

 

CarolinaMLS’s statistical reports show that new construction sales are on the rise!

We’re introducing the Custom-Built Construction Price Certification to accommodate better reporting of custom-built new construction in the MLS.  This will address two pain points agents expressed:

  1. Agents want to be able to report the sale price after the certificate of occupancy is issued.
  2. Agents want to be able to report custom-built new construction paid for by cash.

When to use it

The Custom-Built Construction Price Certification is used when the lot seller and builder are not the same entity or when the new construction is paid for by cash after the closing of the lot.

In such cases, the listing in the MLS must indicate “Construction Package” in the “Model/Plan” field.

This is so appraisers and brokers will know the sale is the result of combining a land sale with the price of a home that has been built or will be built on the land, which affects the ability to include these sales as comps in appraisals. The lot seller and builder both authorize cooperation and compensation for the purpose of listing the property in the MLS.

Reporting

If the sale is financed with a construction/perm loan, it can be reported within five days following settlement (as usual) or following the Certificate of Occupancy (this is new).

Items paid for “outside of closing” may be reflected in the Closed Price only if reflected on the HUD/TRID closing disclosure statement.

If the closing statement does not match the Closed Price reported in the MLS, as with cash, the “Market Value” may be reported if appraised, or the Closed Price may be the sum of the land purchase price and final construction sales price.

The builder’s final invoice and the Custom-Built Price Certification form must be attached to the listing.

Learn more at the Realtor® EXPO March 14

Learn about this topic as well as others, including virtual staging, listing accessibility, social media advertising and more at one of three “Are You Playing by the Rules” sessions at our Realtor® EXPO!  View session info and register for the EXPO here.

Questions?  Reach out to Debbie Wey by email or at 704-940-3115.