Final Inspection Checklist for New Construction Homes
By Stan Choate, Appraisal Tech / Valuation Associate
Keeping the “Final” in “Final Inspection”
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?
New Construction
From Plans to Certificate
Where the final inspection fits, and what happens if the house isn’t done.
Appraisal before
construction
Construction
Final
inspection
Completion
certificate
Not actually complete?
Another inspection later, with an extra travel fee
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
Why Final Inspections Often Aren’t Final
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 homeowner appreciates. This common problem wastes money for customers and wastes time for appraisers.
What Does “Done” Mean?
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 homeowner 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.
The Root of the Problem
What Does “Done” Mean?
Different parties define “done” differently.
To the Homeowner
The Home Is Habitable
- They are able to live there
- Kitchen cabinets might be sitting in the garage
- The deck may not be built
To the Appraiser
Every Task Is Complete
- Every task listed at the start of the project is completed
- Every line on the blueprints is a tangible part of the home
- Ready for the completion certificate
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
Questions to Ask Before Ordering a Final Inspection
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?
Before You Call
Final Inspection Checklist
Questions lenders can ask their clients before ordering a final inspection.
Do any rooms still need carpet, trim, or lights?
In the kitchen, are all countertops and cabinets installed?
Second story? Are all walls and fixtures installed up there?
Finished basement? Are all basement walls and fixtures installed?
Is all work complete for garages, decks, and porches?
Anything still unfinished? Wait to order the final inspection.
Farm · Commercial · Home appraisals | Missouri · Illinois · Iowa
About Spurgeon Appraisals
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.
