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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

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Builder Purchase

Buying a home from a builder or developer requires lender verification that the purchase price aligns with market value.

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Construction Loan Conversion

Converting your construction loan to permanent financing requires a final appraisal upon project completion.

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Progress Inspections

Construction lenders often require appraisals at various completion stages to release funds for the next phase.

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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.

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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

1

Initial Review

Review plans, specifications, and construction details to understand the scope of work.

2

Site Inspection

Visit the property to assess construction progress, quality, and conformity to plans.

3

Market Research

Analyze comparable new construction sales and current market conditions in the area.

4

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