A new construction appraisal starts with a property that may not yet exist in its finished form. The home may be proposed, partially complete, or recently completed. In each situation, the appraiser needs enough reliable information to understand what is being built, what is included, and what condition should be reflected in the value opinion.
Plans and specifications are central to that process, but they are not the only useful records. A clear package can also include the site plan, construction contract, cost breakdown, change orders, progress information, and details about utilities or energy features.
The exact requirements depend on the intended use and the instructions for the assignment. This checklist explains the information that often helps an Arizona residential appraiser understand a proposed or in-progress home.
Start With the Plans That Describe the Finished Home
The appraiser needs a coherent picture of the residence as it is intended to be completed. Architectural plans can help establish the layout, room count, gross living area, design, quality, and functional features of the proposed home.
Useful plan sheets may include:
- Floor plans for each level
- Exterior elevations
- Building sections
- A foundation plan
- A roof plan when the design is not obvious
- A window and door schedule when those features affect quality or design
- Garage, patio, porch, casita, or accessory-area details
The most useful set is the current approved version. If earlier plans are mixed with revised plans, identify which sheets control the project.
Specifications Explain What the Drawings May Not Show
Plans show dimensions and design. Specifications help explain materials, finishes, fixtures, systems, and construction quality.
Depending on the home, specifications may identify:
- Exterior materials and roofing
- Flooring, cabinetry, counters, and interior finish levels
- Plumbing and electrical fixtures
- Heating and cooling systems
- Insulation and energy-related components
- Appliance packages
- Pool, spa, landscaping, walls, gates, or other site improvements
- Well, septic, propane, or other utility systems when applicable
This detail matters because two homes with similar square footage and room counts can compete differently when quality, finish, energy performance, or site improvements differ.
Include the Site Plan and Utility Information
The lot is part of the appraisal. A site plan or survey can help clarify how the home sits on the parcel and what other improvements are planned.
Helpful site information can include:
- Parcel size and shape
- Building placement and setbacks
- Driveway and legal access
- Grading and drainage plans
- Utility connections
- Well or septic details when applicable
- Easements or encroachments shown on available records
- Planned walls, fencing, pools, detached buildings, or major landscaping
- Flood-related or topographic information supplied for the project
In Queen Creek and other Maricopa and Pinal County markets, the appraiser may need to distinguish a newer subdivision lot from a custom or acreage setting. Site utility, outbuildings, access, builder competition, and the local buyer pool can influence which sales are relevant.
Provide the Construction Contract and Cost Breakdown
A signed construction contract can help identify the parties, scope, base price, allowances, and items included in the project. A detailed cost breakdown can help the appraiser understand how the total is distributed across land, site work, permits, labor, materials, contractor overhead, and individual improvements.
Cost information is useful, but cost is not the same as market value. Buyers may not pay one additional dollar for every dollar spent. Some items may be necessary to complete the home, while others may contribute more or less than their cost depending on buyer demand and the surrounding market.
The appraiser considers cost information alongside comparable sales, market reaction, the property as proposed or completed, and the intended use of the report.
Keep Change Orders With the Current Project File
Construction projects change. The owner may upgrade finishes, alter the layout, add a pool, remove an improvement, change the garage, or revise the site work.
Signed change orders help reconcile those decisions with the original plans and contract. Without them, the documents may describe a home that is no longer being built.
If there have been several revisions, a short summary can help:
- What changed?
- When was the change approved?
- Does it affect area, room count, quality, site improvements, or construction stage?
- Is the change already reflected in revised plans or specifications?
The goal is not to create extra paperwork. It is to make sure the appraisal reflects one consistent version of the project.
Document the Current Stage of Construction
For an in-progress home, the appraiser needs to understand what is complete and what remains.
Useful records may include:
- A current construction schedule
- Draw requests or progress summaries when relevant to the assignment
- Dated photographs
- Inspection records or completion certifications supplied by the appropriate parties
- A list of incomplete items
- Updated plans and change orders
The appraiser's role and the scope of any progress observation depend on the assignment. An appraisal is not a substitute for a home inspection, engineering review, code inspection, or contractor certification.
Identify Green and Energy Features Clearly
Energy features can be difficult to evaluate when they are described only as "upgraded" or "efficient." Specific documentation is more useful.
Examples include:
- Insulation type and rating
- Window specifications
- HVAC efficiency information
- Solar ownership or financing details
- Battery storage
- Water-heating systems
- Certified green-building documentation
- Smart-home or energy-management features
The presence or cost of a feature does not guarantee a particular value contribution. The appraiser looks for evidence of how the market responds to the feature in the relevant property segment.
Clarify the Intended Use and Effective Date
The same construction documents may be interpreted differently depending on the valuation question. A proposed-construction appraisal, a lender-related assignment, a private decision, a completion-related update, or an appraisal of a recently finished home can involve different instructions.
Before the work begins, clarify:
- Why the appraisal is needed
- Who is expected to rely on the report
- Whether the value is based on the proposed completed home, current condition, or another defined condition
- The effective date that applies
- Any lender, attorney, owner, or other intended-user instructions
Clear instructions help the appraiser frame the assignment correctly. The appraiser does not decide lending, legal, construction, or tax requirements for the client.
A Practical Document Checklist
Before ordering the appraisal, gather what is available:
- Current architectural plans
- Current specifications and finish schedules
- Site plan, survey, and utility information
- Signed construction contract
- Detailed cost breakdown
- Signed change orders
- Construction schedule and progress records
- Dated photographs for an in-progress home
- Documentation for pools, detached buildings, landscaping, solar, or other major features
- The property address or parcel information
- The intended use, intended users, effective date, and applicable assignment instructions
Do not delay the first conversation because one document is missing. Start with the property or parcel, the construction stage, and the reason the appraisal is needed. The appraiser can identify which missing items materially affect the assignment.
New Construction Value Still Comes From the Market
Plans, specifications, and costs describe the home. Market evidence helps explain its value.
The appraiser considers the proposed or completed improvements, site, quality, condition, competing new construction, builder incentives, relevant resales, and buyer behavior. In fast-growing Arizona markets, the closest sale may not be the strongest comparison if it reflects a different builder, development phase, lot type, quality level, or market segment.
TDC Valuations' residential construction appraisal page explains its work with proposed, in-progress, completed, and build-to-suit homes. For local context, the Queen Creek residential appraiser page explains how subdivisions, custom homes, acreage, and builder competition can affect the appraisal analysis. You can also contact TDC Valuations with the property information, project stage, and intended use.
About the Author
Todd D. Crimmins is an Arizona Certified Residential Real Estate Appraiser, certification 20022, and an Arizona Designated Supervisory Appraiser. His residential appraisal background includes new construction, build-to-suit assignments with plans and specifications, condos, vacant lots, and other Maricopa and Pinal County property types.