In the mortgage market, determining the value of a home is very important. The actual purchase of a home depends upon its estimated value. In case the property whose value has to be estimated is located in an area that has a history of property purchases and sales, then it is not that much difficult to ascertain the value of the property. But, in case the property under consideration is a new construction project, then it is more difficult to estimate its value. Finding out the appraised value of the property that has not been constructed yet, is more challenging. In order to find out the value of such property, an appraiser requires adequate information and documentation from the home buyer and the contractor. Here we discuss about the different things that an appraiser requires to find out the value of a house that has not been built yet-
1. Plan or drawing of the house
In order to find out the value of a home that has not been built yet, the property appraiser depends very much upon the plan of the construction drawing of the house. Home buyer can obtain the plan or the construction drawing of the house from the architect or the home builder. Plan actually gives a detailed description of the home. The square footage area of the home, size of the home, floor plan layout, electrical and mechanical components etc are all given in the plan.
2. Materials that are used
Quality of the materials that will be used to build the house is also a very important factor that determines the value of a home. The quality and the type of the materials that will be used to build the house is given in the 'spec' sheet. Standard that will be maintained to construct the house is given in the 'spec' sheet. Exterior and roofing products and the type of insulation that will be used to construct the house are given in the sheet. This specification sheet is very useful to the appraisers to find out the value of a home that has not been constructed yet.
3. Costs required for different items
The appraiser should require the document related to the costs needed for different sections. Costs required for different things such as building materials, land, labor are segregated in the document. As a home buyer, you can obtain this document from the builder.
4. Location of your home
Location of your home in the construction site is another key factor that determines the value of the home.
Once the appraiser have all these information, he/she can give an estimate of the value of the home once the construction work gets completed. The accuracy of the estimate given by the appraiser depends upon the adequacy and accuracy of information.