When Green Poses an Appraisal Problem

first_imgAlthough the couple, Gail and Larry Berberich, had no trouble securing a loan to build their home two years ago, their quest to refinance was thwarted by the relative isolation of their home, which meant lack of sales comparables, and a lending climate in which banks that want to eventually sell portions of their mortgage portfolios on the secondary market require not only excellent borrower credit scores but compliance with stricter appraisal guidelines set last month by secondary-market company Freddie Mac.Appraisal concerns – many of them focused on appraisers’ knowledge of green construction, but also on a lack of comparables – also dog the commercial market, notes a story recently published by the Daily Journal of Commerce, in Portland, Oregon.But in home construction, at least, builders likely will do their utmost to find appraisal workarounds until green construction becomes more common. Mike Vilstrup, a builder and president of the Madison Area Builders Association, told the State Journal that he had no problem getting financing to construct two green-certified homes this year.“If you work with your lenders and everybody attacks it as a team, there are ways to make things work,” he said. In the same press release the National Association of Realtors reported a 2.4% uptick in existing-home sales for May, the group also repeated its concerns about appraisal methods that, according to NAR economist Lawrence Yun, “compare traditional homes with distressed and discounted sales.”That has been an issue, of course, for almost everyone in the building trade and real estate business since distressed and foreclosed properties began flooding the market more than a year ago. But appraisal problems, particularly in today’s risk-averse lending climate, are not always related to disparities between standard listings and homes with troubled financial histories.In some markets, a dearth of appraisers familiar with green construction – or perhaps even more critically, a scarcity of nearby listings with comparable green features – can frustrate prospective homebuyers and homeowners who wish to refinance.The comparables questionOne otherwise creditworthy couple in a rural section of Wisconsin’s Richland County found themselves unable to refinance because their home, built two years ago, has ICF walls and an outdoor wood-burning furnace – two features that are apparently unique in their area, according to a recent story in the Wisconsin State Journal. RELATED ARTICLES Seeing Red on a Green Property Appraisal — Part 1Seeing Red on a Green Property Appraisal — Part 2Seeing Red on a Green Property Appraisal — Part 3Green Building Appraisal and Financing IssuesGreen Home Appraisal WoesA Step Toward Fairer Green Home ValuationsGetting a Grip on Green-Home Appraisals and InsuranceQ&A: Bad Appraisal on a New Green HomeQ&A: Refinance and Appraisal of Net-Zero Homelast_img read more

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Consistently Consistent

first_imgWhatever your business strategy, it should be pursued consistently.If you have the lowest price because that is the value you intend to create, that should be how you compete. You confuse your customers and your employees when you sometimes try to capture more value. You don’t expect to pay more sometimes, and other times, pay less.If your strategy is to have the very best product, releasing and selling an inferior one damages your strategy. By releasing something that isn’t up to the standard you set, you lose the loyalty and the willingness to pay for something that is supposed to be of a higher quality, one worthy of a higher price.If your strategy is the best total solution, you don’t have to have the best price or the best product. Instead, you have to consistently deliver greater value through a combination of things designed to deliver greater value than competitive offerings. To execute this strategy you need to consistently create new solutions that match your client’s needs. When you stop collaborating and caring enough to do this work, you have broken your strategy.There are companies in every vertical that compete using each of these three strategies. It’s their consistency, however, that defines them in their space. You have to be consistently consistent in the execution of your strategy when it comes to differentiation, and when it comes to pricing.If you choose to compete by providing the lowest price and eliminating other value you might create, execute that strategy consistently and roll up all the targets who need that value. If you choose to create the best product money can buy, then refine your work and improve it, leaving no doubt that your product is better than any alternative. If you compete on the best overall solution, consistently execute that strategy, which means that you price according to the value you create, not what your competitor’s charge. Essential Reading! Get my first book: The Only Sale Guide You’ll Ever Need “The USA Today bestseller by the star sales speaker and author of The Sales Blog that reveals how all salespeople can attain huge sales success through strategies backed by extensive research and experience.” Buy Nowlast_img read more

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Policeman killed, another injured in militant attack in Anantnag

first_imgOne policeman was killed and another injured in a militant attack in South Kashmir’s Anantnag on Tuesday afternoon.“Militants fired upon a police vehicle in Anantnag’s Bijbehara. The police retaliated the fire. One injured policeman succumbed to injuries in the hospital and another is undergoing a treatment,” said a police spokesman.Deceased policeman was identified as Bilal Ahmed. The injured policeman was identified as Abdul Rashid. The security forces later cordoned off the area and started a combing operation to nab the attackers.BSF jawan killed in JammuIn Jammu, a Border Security Force (BSF) jawan was killed as Pakistani troops opened fire on the International Border (IB) in Samba Sector.”Pakistan rangers violated ceasefire agreement at 1:30 a.m. and resorted to unprovoked firing at the BSF positions. The exchange of fire was on for three hours,” said an official.Deceased BSF constable was identified as Devinder Singh. “Singh suffered injuries in the firing and later succumbed,” the official added.Meanwhile, Inspector General Frontier, BSF, Srinagar, Abhinav Kumar met Governor N.N. Vohra and briefed him about the BSF’s operations in Kashmir and “about the likely pattern of the emerging security scenario”.last_img read more

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No exposure to any Cafe Coffee Day group cos says Tata Capital

first_imgNew Delhi: Amid talk of financial stress driving founder V G Siddhartha to allegedly end his life, the coffee tycoon had repaid all the loans taken from Tata Capital Financial Services (TCFS) and has no outstanding dues to the entity. According to TCFS, it had a maximum exposure of Rs 165 crore to Caf Coffee Day (CCD) group in FY2017-18, and that the entire amount had been repaid by March 2019. “The maximum exposure of TCFS to the CCD group during 2017-18 was Rs 165 crore. In March 2019, TCFS’ exposure has completely been repaid,” said a company statement emailed to PTI. Also Read – Thermal coal import may surpass 200 MT this fiscal Currently, TCFS – a subsidiary of Tata Capital Ltd – has no exposure to Coffee Day Enterprises Ltd (CDEL) or any of the companies within the Caf Coffee Day group, it added. CDEL promoter and coffee tycoon V G Siddhartha is said to have been under severe financial stress before his death, with his flagship cafe chain’s liabilities doubling to over Rs 5,200 crore by the end of March 2019. His unlisted ventures for realty and hospitality had also availed loans from various entities, as per regulatory filings with the corporate affairs ministry. Also Read – Food grain output seen at 140.57 mt in current fiscal on monsoon boost Siddhartha, whose body was recovered from a river near Mangalore on Wednesday after going missing on Monday, had struggled with mounting financial burden and a letter purportedly written by him had hinted at his war with “serious liquidity crunch” and “tremendous pressure” from lenders and an unnamed private equity investor. Filings with the corporate affairs ministry showed him trying to raise funds by pledging shares of his listed and four unlisted firms to pay off personal and company loans. Siddhartha and promoter group entities had pledged over 75 per cent of their shares in the BSE-listed CDEL as on March 31, 2019. Siddhartha had several entities that borrowed money from a gamut of organisations, including banks and financial institutions, for his non-coffee businesses. A letter, purportedly written by him, had cited pressure from banks, investors and tax authorities. “I would like to say I gave it my all. I am sorry to let down all the people that put their trust in me. I fought for a long time but today, I gave up as I could not take any more pressure from one of the private equity partners forcing me to buy back shares, a transaction I had partially completed six months ago by borrowing a large sum of money from a friend,” Siddhartha purportedly wrote in the letter. Coffee Day Enterprises Ltd (CDEL) had a total current liability of Rs 5,251 crore as on March 31, 2019, up from Rs 2,457.3 crore a year back, according to regulatory filings. CDEL’s promoter companies — Devadarshini Info Technologies, Coffee Day Consolidations, Gonibedu Coffee Estates, and Sivan Securities — had also borrowed heavily from time to time. While the exact quantum of the borrowings by the unlisted companies of Siddhartha could not be immediately ascertained, the total as indicated by the filings would be in addition to the amount CDEL owed to lenders. Siddhartha’s borrowings appear to have intensified after 2017 though there is no indication of just how many of them remain unpaid after their due date or have turned non-performing assets.last_img read more

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