New Construction Appraisal
Professional valuations for newly built homes and developments
Purchasing a newly constructed home requires special appraisal expertise. Unlike existing homes, new construction properties lack a history of prior sales and may have few comparable properties. Our specialized approach ensures accurate valuations that account for modern features, builder premiums, and current construction costs.
Whether you're buying directly from a builder, converting a construction loan to permanent financing, or need a final completion appraisal, Schumacher Appraisal provides the detailed analysis lenders require for new construction transactions throughout the Bay Area.
When You Need a New Construction Appraisal
Builder Purchase
Buying a home from a builder or developer requires lender verification that the purchase price aligns with market value.
Construction Loan Conversion
Converting your construction loan to permanent financing requires a final appraisal upon project completion.
Progress Inspections
Construction lenders often require appraisals at various completion stages to release funds for the next phase.
Pre-Sale Valuation
Builders and developers need valuations for presale purposes or to establish pricing for new developments.
Final Completion
Final appraisal verifying the completed home matches approved plans and justifies the final loan amount.
Custom Homes
Custom-built homes on your own lot require specialized appraisal to account for unique features and specifications.
Unique Challenges of New Construction Appraisals
New construction requires specialized expertise and methodology
Limited Comparables
New developments may have few or no recent sales to use as comparables. We use similar new construction in the area, adjust for features, and apply cost approach methodology to establish value.
Builder Premiums
Builder prices often include premiums for new construction warranties, modern systems, and the convenience of buying new. We analyze whether these premiums are supported by the market.
Incomplete Improvements
During construction, we must evaluate partially completed work and determine "as complete" value while accounting for construction quality and adherence to plans.
Market Absorption
Large developments require analysis of market absorption rates and competition from similar new construction to ensure realistic valuations.
Our New Construction Expertise
Cost Approach Proficiency
Expert application of cost approach methodology, essential for new construction valuations with limited sales data.
Construction Knowledge
Understanding of building methods, materials, and construction costs ensures accurate evaluation of new homes.
Plan Review Experience
Ability to evaluate properties from architectural plans and specifications for pre-completion valuations.
Bay Area Development Familiarity
30+ years of local experience tracking new construction trends and builder activity throughout the region.
Lender Requirements
Thorough understanding of construction loan and new home purchase appraisal requirements for all major lenders.
What's Included
- ✓Complete property inspection or plan review
- ✓Sales comparison approach using new construction comparables
- ✓Cost approach analysis when applicable
- ✓Construction quality assessment
- ✓Builder reputation and warranty evaluation
- ✓Market absorption analysis for developments
- ✓Energy efficiency and modern systems documentation
- ✓Full USPAP-compliant appraisal report
Our New Construction Appraisal Process
Thorough methodology for accurate new construction valuations
Initial Review
Review plans, specifications, and construction details to understand the scope of work.
Site Inspection
Visit the property to assess construction progress, quality, and conformity to plans.
Market Research
Analyze comparable new construction sales and current market conditions in the area.
Value Conclusion
Apply appropriate valuation methods to determine accurate market value.
Special Considerations for New Construction
Energy Efficiency
Modern construction includes energy-efficient features and systems that add value. We document solar panels, high-efficiency HVAC, advanced insulation, and smart home technology that differentiate new homes from older properties.
Builder Warranties
New construction typically comes with builder warranties covering structural elements, systems, and workmanship. We consider these warranties in our analysis as they provide value and peace of mind to buyers.
Completion Timeline
For homes under construction, we estimate time to completion and account for potential changes in market conditions between appraisal and final completion.
Customization Value
Buyer-selected upgrades and customizations are evaluated for their contribution to value, recognizing that some custom features may not return full cost at resale.
Need a New Construction Appraisal?
Get expert valuation for your new home or development project