It is common to need an appraisal done of a proposed house. It is also common to need monthly construction progress reports to follow up the appraisal.

This is a common practice in the appraisal profession. The appraisal can be done from the blue prints together with the specifications that describe the finish work. The appraisal is done as if the house were complete today. Often, at the end of construction, the lender will ask for an update to the appraisal to track the market value.

A key element to this process is a useful construction progress report. A form with the different construction elements of the house broken out as line items together with a percent of the total is needed. Custom forms are made to cover these progress reports. With a column for each of the months of construction, an appraiser can track the progress accurately, reporting the percent of completion to the lender each month. This allows the lender to advance money to the builder as progress is made.

Ralph Olsen, Appraiser IFA

Pacific West Appraisal Services, Inc.

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