A rehab project usually needs two numbers: what the property is worth today, and what it will be worth once a defined scope of work is complete. Those are different opinions developed under different assumptions, and the second one is only ever as good as the scope it rests on.
What this assignment is scoped to do, stated before you engage.
As-is value is what the property is worth in its current condition, today. As-repaired value is its projected market value once specified renovations are complete. Both are commonly needed on the same project, and they are developed differently.
The as-repaired figure is a subject-to-completion assignment, developed under a stated hypothetical condition and disclosed as such in the report. That disclosure is not boilerplate. It is what tells any later reader exactly which assumptions the number depends on.
A defined scope of work, in writing. A line-item budget. Plans or drawings where the layout changes. A realistic timeline. If a permit is required for any of it, say so.
An as-repaired opinion built on a vague scope is worth very little, because the conclusion inherits every ambiguity in the description. Vague in, vague out. The half hour spent writing the scope down properly is the highest-return half hour in the assignment.
Three ways, consistently. The scope grows after the appraisal and the number is quietly treated as though it still applies. The budget contains line items the market does not actually pay for, so cost is assumed to equal value when it frequently does not. Or the finished product is specified above what the neighborhood supports, and the last twenty thousand dollars of work returns nothing.
I will tell you when I see the third one. It is not the assignment you paid for, but it is usually the most valuable sentence in the report.
Vacant land and acreage are their own discipline and I take that work. Divisibility, percolation and septic suitability, road frontage and access, utilities, and former farmland moving toward a different highest and best use.
These assignments take longer and they should. Comparable data is thinner, the adjustments are larger, and highest and best use is a real analysis rather than a line in a form.
If you are buying regularly, tell me at the outset. Assignments run more smoothly when I already understand what you build, what finish level you work to, and which submarkets you operate in. It shortens the conversation on every subsequent property.
It's the property's projected market value once specified renovations are completed, as distinct from as-is value today. Both are commonly needed on a rehab project.
An as-repaired opinion depends on a defined scope of work, so I need the plans and the budget to develop one.
Yes. That's a subject-to-completion assignment, developed under a stated hypothetical condition and disclosed as such in the report.
The conclusion is only as good as the scope of work it's built on.
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You will reach Scott directly. Expect questions about intended use and effective date before a fee is quoted.
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