New Construction vs. Older Homes in Today's Market - Quicken Loans Zing Blog

Title Source is one of the largest providers of title insurance, property valuations and settlement services in the nation.

Can an appraiser make a report on the value of an unfinished home? In short, yes. To do so, there are two different routes the appraiser can take: determine an “as-is,” or a “subject to,” appraisal value.

An “as-is” appraisal is fairly common and just as it sounds, it’s an appraised value for a home in its current condition during the time of the appraisal. A “subject to” appraisal is an assumed value of a home once all of its work is completed. This type of appraisal is somewhat common, and will take place when a house is still under construction or in the middle of a renovation. To complete a report of this type, the appraiser takes into account all of the additions that will go into the home, but the value of the home listed in the report is based on the condition that all construction or renovations are completely finished.

It’s like your appraiser is saying, “OK, your house will be worth this much once you finish your kitchen remodel, so here’s an adjusted home value for the additional work.” Meaning that the value is only valid once work is complete on the home.

A subject-to appraisal is allowed for two types of loans: new construction and government backed rehabilitation loans, where a property is fixed up and brought back to life. In both cases, a loan can be made for a home that isn’t in immaculate living condition, under the pretense that work is done to fix its faults and then the value will improve. This type of appraisal is great for fixing-up a house, and situations where a home is flipped (purchased, repaired, remodeled and sold). The projected value can also be verified by the appraiser during a re-inspection.

Interested in getting your property appraised? Feel free to visit

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This Post Has 2 Comments

  1. I have a half built home my banker needs an assumed value of what it’s worth when completed can you help

    1. Hi Craig:

      Unfortunately, our sister company Title Source only does appraisal on homes that are fully completed. However, you should be able to talk to your lender and get a list of appraisers they work with if they do that type of lending already. I would talk to your banker.

      Kevin Graham

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