I was asked by a bank manager if I can do appraisals on homes in the process of construction on the percentage of completion with the electrical, plumbing, and so forth, so the bank can determine how much to lend the builder to complete the home. Is there a course on how to appraise for a bank, and has anyone been hired to do appraisals ? If so what does it entail?
An Appraisers License!
Now, if you actually meant something different…
Appraisal license is pretty tough to get. The easy part is 75 hours of online education. The hard part is finding a mentor to supervise you for 1500 hours.
The way the bank manager put it, I would only evaluate the progress the builder is at when I went on site to see how far along the construction was. If the electrical was only 50% completed, the bank would go by my report to determine how much more money to give to finish the electrical. I wasn’t sure if this would actually fall under an appraisal, or would could this fall under new construction inspection.
That is known as a DRAW inspection.
Thanks Jeffery Jonas. Do you know if there is a course on how to write up a draw inspection?
This may be helpful…change to fit as needed…I picked it up on this forum sometime back:
Construction Draw inspections copy.xlsx (30.6 KB)
What you’ve described is NOT and appraisal but a Draw / Progress Inspection on certain aspects to see how far they are doing something 24% / 40% / 80% / Etc.
We get $300 - $350 for draws where I’m at. Your course is construction 101
Thanks guys. I wanted to make sure I knew everything about it before I got back with the bank manager. I’m going to try to find someone local that does phase inspections and see if I can shadow them for a few inspections.
Note: DRAW inspections and PHASE inspections are two different beasts!
Basically, DRAW is a COMPLETION OF WORK report for the financing company to release payment to the contractors.
PHASE is a QUALITY and CODE related inspection to insure the structure is being built properly.
Thanks again Jeffrey Jones. I spoke with the bank manager and she means draw inspection.
The basics of what a DRAW inspection is so you are able to understand what may be required of you…
Jeffrey, I really appreciate you sharing this information.