Starting with a property valuation of the empty lot, we build an “as complete” appraised value of the home based on several factors. Our first step is to look at the costs to install utilities to the vacant lot, including water, gas, sewer, electricity, and phone / internet service.
Next, we examine the house plans to determine how much it will cost to build the home. To do this, we look at basic construction costs, but also factor in the quality of the final build. Depending on the project, the finishing details added by the contractor can dramatically affect the final building costs for newly constructed homes. For example, will the home include pre-fabricated cabinetry, or does the design feature custom millwork in the kitchen, bathrooms, and elsewhere in the house? What types of finishing materials will be used for countertops, flooring, crown and floor moulding, and the exterior of the home? What about lighting, appliances, fireplaces, and other amenities like Heat Recovery Ventilators, solar panels, and built-in audio / visual systems?
We also look the costs associated with finishing the exterior of the home. Exterior finishing materials like rockwork, siding, doors, and roofing can vary widely in cost. The landscaping affects the final value, too. We determine whether landscaping is included in the final build, and if so, we add the projected final costs for plantings, rockwork, water features, fencing and outbuildings.
Once we’ve built our appraisal to determine what the home value will be upon completion, we repeat our inspections following the schedule for payment installments set by the lender. Typically, this means we complete an appraisal at lock up (when doors and windows are installed), at the drywall stage, and upon completion of construction.
At this point, the final construction appraisal can be used to by the builder to determine the fair market value for the new home, and for potential buyers to secure their mortgage financing.
An accurate appraisal for new construction homes requires special expertise in all aspects of the building process, as well as thorough knowledge of the Victoria real estate market. Our team of Appraisal Institute of Canada (AIC) certified appraisers can build a complete property value report of the highest quality to facilitate the construction process from design to build.