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New Construction
Welcome to Home Point Appraisal, Your Trusted
Real Estate
New Construction
Appraiser
A New Construction Appraisal is a professional property valuation of a recently built or under-construction home or building. The appraiser evaluates the property’s design, quality of construction, materials, finishes, and compliance with local building codes, as well as comparable sales of similar new homes. This type of appraisal is commonly used for financing, developer sales, insurance, or investment purposes and establishes the property’s market value once construction is complete.
Why Choose Home Point Appraisal?
With over 25+ years of experience in the SoCal real estate industry, we have expertise and knowledge of your local market. Call us for fast response or click the button below to get an instant quote.
Frequently Asked Questions — New Construction Appraisal
How is new construction appraised when it’s not yet built?
New construction appraisals (Form 1004 with subject-to language) value the property “as if complete” based on plans, specifications, builder contract, and comparable sales of similar completed homes. The appraisal documents the planned scope and establishes the value upon completion — supporting construction loan underwriting and final certificate of occupancy financing.
What comps are used for new construction valuations?
Comparable selection prioritizes: recent sales of similar new or near-new construction in the same neighborhood, similar quality and size finished homes in the area, and (when available) sales of comparable builder products. The appraisal carefully matches the subject’s planned quality, size, and configuration to comparable evidence and documents any adjustments needed.
How are construction draws and final inspections handled?
For construction loans, the original appraisal establishes the “as complete” value and supports the loan amount. As construction progresses, the lender may order interim inspections (Form 1004D Final Inspection) to verify completion of phases and authorize draws. Once construction is complete, a final inspection certifies the project finished as planned. We handle the entire construction appraisal lifecycle.
What if the builder changes specs during construction?
Spec changes during construction can affect value. Material upgrades (better cabinets, hardwood, premium fixtures) typically add value; material downgrades subtract. We’re available to evaluate change orders and update the appraisal value if the lender requires. Significant scope changes may require a new appraisal rather than an update.
Do you appraise custom homes and ADUs?
Yes. We appraise custom-built single-family homes and ADUs (Accessory Dwelling Units) throughout LA County. ADU appraisals are especially relevant given California’s legislative push to encourage ADU construction. We analyze the ADU’s contributory value, which depends on its size, finish quality, rental potential, and whether it’s detached or attached to the main home.
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