KEEPING THE “FINAL” IN “FINAL INSPECTION”

by Stan Choate, Appraiser Tech / Valuation Associate

April 2019

One of our common projects here at Spurgeon Appraisals is the “final inspection” of a recently constructed house. While lenders typically have us perform appraisals on a property before construction begins, they often need us to return to the property to determine whether construction is finished and whether the original plans have been followed. The result of this final inspection is the “completion certificate”, though it might be called by other names. Does that sound simple?
 
It rarely is. Very often we will send one of our appraisers to do a final inspection only to discover that the construction is not actually complete, which means we cannot do the completion certificate at that time. This requires us to make yet another inspection later, when the house is truly done. That extra inspection requires an extra travel fee, which neither the lender nor the home owner appreciate. This common problem wastes money for customers and wastes time for appraisers.

The root of this recurring problem is definitions. Words like “done” and “complete” are defined differently by the different parties involved in the new construction. For the appraiser looking to do a completion certificate, “done” means that every task listed at the beginning of the project has been completed, and every line on the blueprints has been translated into a tangible part of the home. But the home owner usually defines “done” differently. By “done”, he means that the home is now habitable. The kitchen cabinets might be sitting in the garage, and the deck may not be built—but he’s “done” with the house, because he is now able to live there.

To help avoid this misunderstanding and save our customers money, we advise lenders to ask their clients a few questions, before contacting the appraiser for a final inspection.
-Are there rooms that still need carpet, trim, or lights?
-In the kitchen, have all countertops and cabinets been installed?
-If the house has a second story, have all the walls and fixtures been installed up there?
-If the house is meant to have a finished basement, have all basement walls and fixtures been installed?
-Has all work been completed for garages, decks, and porches?
 
The professionals here at Spurgeon Appraisals care about providing quality appraisal work in a timely, affordable manner. Call us today to experience our top-notch service first-hand.

Spurgeon Appraisals regularly appraises a variety of property types. We have experience appraising farms, residences, and commercial properties. We pride ourselves on providing excellent customer service and quality appraisals. Contact our team to see how we can meet your appraisal needs and exceed your service expectations.