TL;DR
An as-completed appraisal estimates what a property will be worth once a planned construction or renovation project is finished, based on the plans and specifications. Lenders require it for construction and renovation loans to size the financing against the future, finished value rather than the current one.
An as-completed appraisal, sometimes called a subject-to appraisal, estimates what a property will be worth once a planned construction or renovation project is finished, based on the submitted plans and specifications. Lenders require it for construction and renovation loans, because they need to size the loan against the finished value, not the current one. It is a specialized assignment: the appraiser values a home that does not fully exist yet, using the plans, the cost estimates, and comparable finished properties.
It is a specialized assignment: the appraiser values a home that does not fully exist yet, using the plans, the cost estimates, and comparable finished properties. Once the project is complete, getting your new square footage into the record keeps your home's data accurate.
What is an as-completed appraisal?
It is an appraisal of a property's value as it will be once a defined construction or renovation project is complete, based on the plans and specifications provided. The appraiser analyzes the proposed finished home against comparable completed properties and produces a value subject to the work being done as described.
It answers a forward-looking question: what will this be worth when it is finished?
When do you need one?
You need an as-completed appraisal for most construction loans, major renovation loans, and some rehab financing. The lender uses the finished value to determine how much to lend, so the appraisal is central to whether the project is financeable and on what terms.
Because it drives the loan amount, the plans and specifications need to be complete before the appraisal.
How is it different from a regular appraisal?
A standard appraisal values the home as it exists today. An as-completed appraisal values it as it will exist after the work, based on the plans, which requires more information and more judgment. Some assignments also include an as-is value alongside the as-completed value for comparison.
A standard appraisal values the home as it exists today, and if a renovation changes the home, you may need to remeasure it after the work.
The quality of the plans and cost data directly affects the reliability of the finished-value opinion.
What should I have ready?
Have the full plans, specifications, a detailed scope of work, and cost estimates ready before ordering. The more complete and specific the documentation, the more accurate and defensible the as-completed value. Missing details slow the appraisal and weaken the result.
The more complete and specific the documentation, the more accurate and defensible the as-completed value, because better information leads to better decisions.
Good documentation up front is the fastest path to a reliable finished-value appraisal.
As-is vs. as-completed appraisal
FactorAs-is appraisalAs-completed appraisalWhat it valuesThe home todayThe finished, future homeBased onCurrent conditionPlans and specificationsUsed forStandard sale or refinanceConstruction and renovation loansNeeds plans/specsNoYes, complete
If you are financing a build or a major renovation in Greater Boston, an as-completed appraisal is likely part of the process, so have your plans and specifications ready. Aladdin Appraisal provides construction and renovation appraisal services across Greater Boston. This is general information, not lending advice; your lender confirms its specific requirements.
Aladdin Appraisal provides construction and renovation appraisal services across Greater Boston, including Malden and throughout Middlesex County.
FAQ
What is an as-completed appraisal?
It estimates a property's value as it will be once a planned construction or renovation is finished, based on the plans and specifications. Lenders require it to size construction and renovation loans against the finished value.
When do I need an as-completed appraisal?
For most construction loans, major renovation loans, and some rehab financing. The lender uses the finished value to determine how much to lend.
How is it different from a normal appraisal?
A normal appraisal values the home as it is today. An as-completed appraisal values it as it will be after the work, based on the plans, which requires complete documentation and more judgment.
What do I need to provide for one?
Complete plans, specifications, a detailed scope of work, and cost estimates. The more complete the documentation, the more accurate and defensible the finished-value opinion.
About the author: Adam Wiener is the principal appraiser and owner of Aladdin Appraisal, a certified Massachusetts real estate appraisal firm serving Greater Boston across Middlesex, Suffolk, and Norfolk counties. Reach the team at (617) 517-3711 or info@aladdinappraisal.com.
NAP: Aladdin Appraisal | 187 Auburndale Ave, Auburndale, MA 02466 | (617) 517-3711 | info@aladdinappraisal.com | https://www.aladdinappraisal.com | Service area: Greater Boston across Middlesex, Suffolk, and Norfolk counties, MA
This article is general information, not legal, tax, or valuation advice for your specific property. For a formal opinion of value, order an appraisal; for legal or tax questions, talk to your attorney or tax professional.
