New Construction Commercial Appraisals
Valuing proposed or ongoing construction requires explicit assumptions about what will be built, when, and at what cost. We provide appraisals of new construction—as-is, as-complete, and prospective—so lenders and developers can underwrite and decide with clarity.
A new construction appraisal values property that is proposed or under construction. Because the completed project doesn't yet exist, the appraisal rests on explicit assumptions—the plans, the budget, the timeline, and the completion condition. The deliverable is an appraisal report, often with more than one value conclusion: as-is (the property in its current, incomplete state), as-complete (the value when finished per the plans), and sometimes prospective. The applicable value definition depends on the lender's or client's needs.
The assumptions are the heart of the assignment. We don't assume the project will be built differently than the plans, and we don't guarantee construction will finish on time or on budget. The as-complete value reflects the project as described in the plans and specs; if the project changes, the value conclusion may change. Lenders use these appraisals to size construction loans and monitor draws.
When Clients Need This Service
Developers and their lenders request new construction appraisals to secure construction financing, size the loan, and support draw inspections. Investors use them to underwrite acquisitions of proposed or partially complete projects. Owners use them for planning and to support refinancing once a project stabilizes.
For example, a developer building a 60,000-square-foot industrial facility may need an as-complete appraisal for the construction lender, reflecting the finished project per the plans. A lender funding draws may want periodic inspections to confirm construction progress matches the budget. In each case, the value is tied to the stated assumptions about the completed project.
What the Analysis Considers
The factors relevant to this assignment vary with the property and the question being asked. Depending on the agreed scope, the analysis may consider:
- The plans, specifications, and budget that define the completed project
- The value definition required—as-is, as-complete, or prospective
- The anticipated completion date and the assumption the project finishes per the plans
- Market conditions and demand for the completed product type in the submarket
- Comparable sales and rentals for the completed property type
- Cost evidence supporting the cost approach where applicable
- Construction progress and any deviations from the original plans
Not every assignment applies all three valuation approaches. The approaches used depend on the property type, available data, and the assignment's intended use.
Documents & Information That May Help
Providing the following can streamline an assignment, but not every item is required to begin. We can discuss what is available during the initial call.
Complete plans and specifications
Essential for as-complete value
Construction budget and timeline
Site plan, entitlements, and permits
Market or pro forma information from the developer
If available
Lender appraisal requirements
Value definitions and report format
How the Engagement Works
Every engagement begins with a conversation so the scope, fee, and timing fit the property and the question you need answered. A typical engagement moves through these stages:
Initial discussion
We learn the project, the stage of construction, and the value definitions the lender needs.
Scope confirmation
We confirm as-is/as-complete scope, the completion assumption, report format, fee, and timing.
Plans review & inspection
We review the plans and inspect the site to confirm progress and condition.
Research
We research comparable sales and rentals for the completed product type.
Analysis & delivery
We conclude the required value(s) under the stated assumptions and deliver the report.
Scope, fees, and timing depend on the property type, assignment complexity, and the report format the client or intended user requires. We confirm these in writing before work begins.
Frequently Asked Questions
Common questions about this service.
Closely Related Services
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Free Appraisal Quote
Tell us about your property and what you need the valuation to address. To help us respond quickly, please include the property address, property type, assignment purpose, the relevant valuation date, and your requested completion date.
Gold Rush Appraisal provides commercial real estate valuations across Texas. Call us directly or send the details through the form and we'll get back to you promptly.
214-761-6875