Alaska Residential Construction Valuation
New Construction Appraisals
Appraisal management for proposed homes, properties under construction, completed new residences, and construction-loan assignments throughout Alaska
A new construction appraisal evaluates a property that may exist only in plans, may be partially built, or may have just reached completion.
AREA Management Company coordinates new construction appraisal assignments by selecting qualified Alaska appraisers with appropriate geographic competency, residential construction experience, and familiarity with plans, specifications, cost information, comparable sales, and completion inspections.
Construction Stages
Appraisals Before, During, and After Construction
The scope of work depends on the property's stage of construction and the question the client needs the appraisal to answer.
Proposed Construction
The appraiser analyzes the site, plans, specifications, proposed improvements, market data, and other available information to develop an opinion of value subject to completion.
Construction in Progress
The assignment considers the work completed as of the effective date and may include both an as-is value and a prospective value subject to completion.
Recently Completed
The appraiser observes the completed home, confirms the finished improvements, and analyzes the property in its current condition.
Preparing the Assignment
Documents Needed for a New Construction Appraisal
Complete and legible construction documents allow the appraiser to understand what is being built and help avoid delays, assumptions, or requests for additional information.
- Building plans and floor plans
- Exterior elevations
- Construction specifications
- Site plan or survey
- Legal description and parcel number
- Builder's contract or proposal
- Construction budget or cost breakdown
- Change orders and upgrades
- Permit information
- Utility and access details
- Current construction photographs
- Estimated completion date
Assignment Analysis
What the Appraiser Considers
The appraisal is based on the property's proposed or completed characteristics, the surrounding market, available comparable sales, and the assumptions and conditions established by the assignment.
Site and Location
The appraiser considers the site, neighborhood, access, utilities, views, topography, market appeal, and other location-related influences.
Design and Floor Plan
Gross living area, room count, functional utility, layout, ceiling design, finished areas, and overall market appeal are evaluated.
Quality and Materials
Construction quality, exterior materials, windows, roofing, insulation, flooring, cabinetry, fixtures, finishes, and energy features may affect value.
Garages and Amenities
Garage capacity, decks, porches, fireplaces, shops, accessory buildings, waterfront features, and other amenities are considered when relevant.
Comparable Properties
The appraiser researches competitive new and existing homes, recent sales, active listings, construction trends, and buyer preferences.
Construction Costs
Cost information may be analyzed as part of the appraisal, but cost does not automatically establish market value.
From Plans to Market Value
How Can a Home Be Appraised Before It Is Built?
A proposed construction appraisal relies on plans, specifications, site information, construction details, and relevant market evidence.
The appraiser identifies the characteristics the home is expected to have when completed and compares the proposed property with competing homes that buyers would consider as alternatives. The resulting value is generally subject to completion in accordance with the plans and specifications reviewed.
Cost and Value
Construction Cost Is Not Always Market Value
The amount spent to build a home may be higher or lower than the value buyers recognize in the market.
Construction cost can be affected by labor availability, transportation, material pricing, remote delivery, contractor overhead, owner-selected upgrades, timing, and unusual design choices. The appraiser considers cost information, but the value conclusion must reflect market evidence and buyer behavior.
What to Expect
The New Construction Appraisal Process
Providing complete documents at the beginning helps the appraiser develop the assignment efficiently and reduces the risk of delays.
Submit the Order
Provide the property address, intended use, construction stage, plans, specifications, budget, site information, and supporting documents.
Appraiser Selection
AREA Management Company selects an appraiser based on location, construction experience, property type, assignment requirements, and availability.
Property and Market Analysis
The appraiser reviews the plans and specifications, observes the site or construction when required, and analyzes relevant market data.
Secure Report Delivery
Once completed and reviewed, the appraisal report is delivered securely through the AppraisalScope client portal.
Construction Follow-Up
Progress and Completion Inspections
A construction appraisal may be followed by additional inspections depending on the client's needs and the type of financing involved.
Progress Inspection
A progress inspection documents the observable stage of construction and may support a construction-draw or project-monitoring decision.
Final Inspection
A final inspection determines whether the home appears completed in accordance with the appraisal's stated plans, specifications, conditions, or required repairs.
Updated Appraisal Analysis
Significant changes, delays, plan revisions, market movement, or a new effective date may require more than a simple inspection and could require an appraisal update or new assignment.
Qualified Construction Appraisers
Choosing the Right Appraiser
New construction assignments require an appraiser who can interpret plans and specifications, understand the local market for new homes, evaluate construction quality, and distinguish between building cost and market value.
New Construction Questions
Frequently Asked Questions
Can a property be appraised before construction begins?
Yes. A proposed construction appraisal may be completed using the site information, building plans, specifications, construction details, and relevant market data. The value is typically subject to completion as represented.
Does the appraisal value equal the construction budget?
Not necessarily. The construction budget reflects expected costs, while market value reflects the actions and preferences of buyers in the relevant market.
Does the appraiser need complete plans and specifications?
Detailed and complete documents are strongly preferred. Missing dimensions, materials, finishes, room information, site details, or construction features may delay the assignment or require assumptions.
What happens if the plans change during construction?
Material changes should be reported to the client and appraiser. Changes to size, design, quality, room count, garage capacity, amenities, site improvements, or specifications may affect the original appraisal conclusion.
Is a final inspection a new appraisal?
Usually not. A final inspection generally addresses whether stated construction or repair conditions have been completed. A new value opinion may require an appraisal update or separate appraisal assignment.
Can you coordinate rural or remote new construction appraisals?
Potentially. Rural and remote assignments are evaluated individually because access, travel, utilities, construction methods, comparable sales, appraiser competency, and availability may affect feasibility and cost.
How long does a new construction appraisal take?
Turnaround time depends on the completeness of the plans and specifications, property location, construction complexity, appraiser availability, inspection access, and available market data.
Begin Your Assignment
Need a New Construction Appraisal?
Create a secure client account to submit the property information, plans, specifications, and construction documents, or email AREA Management Company before ordering if you have questions about the assignment requirements.