Gilbert, Arizona continues to grow rapidly, with new neighborhoods and master-planned communities popping up across the town. For buyers investing in brand-new homes, builders looking to sell, and lenders underwriting loans, one crucial question arises: how are new construction homes appraised differently in Gilbert?

While the basic principles of real estate appraisers remain the same—estimating market value based on location, condition, and comparable sales—new construction introduces additional layers of complexity that require specialized attention.

In this guide, we’ll break down the appraisal process for newly built homes in Gilbert, explain how it differs from appraisals on existing properties, and highlight what buyers, builders, and agents should know to ensure a fair, accurate, and timely appraisal.

Why New Construction Requires a Different Appraisal Approach

Appraising a new construction home isn’t as simple as walking through the property and pulling up three recently sold comps. Unlike existing homes, new construction involves:

• Ongoing or incomplete construction

   

• Lack of direct comparables (especially in new communities)

   

• Builder upgrades and premiums

   

• Unique pricing structures

   

• Delays in final permits or inspections

   

Because of these variables, real estate appraisers must use modified techniques, rely more heavily on builder documentation, and often make assumptions based on projected value—not just existing conditions.

When New Construction Appraisals Are Required in Gilbert

Appraisals for new homes typically occur in one of three scenarios:

1. Pre-Construction Appraisal (Subject to Completion)

    

   • Often required for new construction loans or custom builds.

      

   • The appraisal is based on plans and specifications, not the finished product.

      

2. Final Appraisal (After Completion)

    

   • Occurs before closing to confirm the value of the completed structure.

      

   • Often part of a purchase loan for a move-in ready new build.

      

3. Appraisal During Construction (Draw Appraisals)

    

   • For construction loans, appraisals may be conducted at various stages to authorize lender disbursements (foundation, framing, completion).

      

Each of these requires different documentation and a tailored appraisal method.

What Real Estate Appraisers Look for in New Construction Homes

When valuing a new construction property in Gilbert, appraisers at Eagle Home Appraisal focus on several unique elements that differ from appraising a resale home:

1. Plans, Specs, and Cost Breakdowns

For unfinished homes, appraisers rely on:

• Architectural drawings

   

• Floor plans

   

• Builder’s cost breakdowns

   

• Material specifications

   

• Site plans and permits

   

These documents help the appraiser determine future market value based on what will be constructed—not what’s physically present.

2. Upgrades and Premiums

Most new homes offer base models with upgrade options such as:

• Quartz countertops

   

• Smart home systems

   

• Extended patios or RV garages

   

• Luxury flooring or appliance packages

   

Appraisers must adjust the valuation to account for included upgrades, while ensuring the upgrades reflect what local buyers are willing to pay. This is especially true in communities like Waterston, The Bridges, and Legacy at Seville.

3. Comparable Sales (New vs. Existing)

Finding valid comparables is one of the biggest challenges in new construction appraisal.

• If new homes have sold in the same development, those are the most useful comps.

   

• If not, appraisers may use older resale homes but adjust for:

   

  • Age and condition

     

  • Lot size differences

     

  • Design trends and materials

     

  • Builder warranties or energy-efficient features

     

In fast-developing areas like Gilbert’s southeast corridor, where development may outpace comparable sales data, local expertise becomes critical to accurate adjustments.

Key Differences Between New Construction and Resale Appraisals

The Importance of Market Trends in Gilbert’s New Construction Appraisals

Gilbert is known for its rapid development, and market trends can shift quickly—especially in new build communities.

Appraisers Evaluate:

• Sales absorption rates (how quickly new homes sell)

   

• Builder pricing patterns (discounts, incentives, upgrades)

   

• Supply and demand (inventory levels)

   

• Submarket growth (east vs. west Gilbert, gated vs. non-gated)

   

Appraisers at Eagle Home Appraisal monitor these metrics closely to ensure valuations align with current market activity—not outdated sales prices from previous quarters.

Challenges Builders and Buyers May Face

1. Appraisal Comes in Lower Than Contract Price

Builders sometimes price homes based on future demand or include upgrade packages that don’t always justify the total price in the eyes of the appraiser.

• Solution: Provide the appraiser with a complete list of upgrades and premiums, as well as recent builder sales data if available.

   

2. Lack of Comparables in New Communities

When a development is brand new, there may be few or no closed sales.

• Solution: Appraisers expand the search to similar neighborhoods with equivalent finishes and adjust for differences.

   

3. Delays in Permits or Completion

Appraisals done “subject to completion” must be followed up with a final inspection before funding or closing.

• Solution: Maintain open communication between builder, appraiser, and lender to avoid timing issues.

   

How Eagle Home Appraisal Navigates New Construction Complexities

As trusted real estate appraisers in Gilbert, Eagle Home Appraisal brings years of experience working with builders, buyers, and lenders on both production and custom home appraisals.

Their Strengths Include:

• In-Depth Knowledge of Gilbert’s New Developments

   

  • Familiar with trends in communities like Morrison Ranch, Cadence, and The Islands.

     

• Builder Collaboration

   

  • Open communication with builders for full access to upgrades, options, and base pricing.

     

• Accurate, Market-Driven Adjustments

   

  • Adjusts for lot premiums, energy features, and design upgrades with real market data.

     

• Fast Turnaround

   

  • Delivers timely reports so builders and buyers can close on schedule.

     

Tips for Buyers and Builders During New Construction Appraisals

✅ Buyers:

• Request a detailed upgrade list from the builder.

   

• Provide any preliminary closing statements showing incentives or credits.

   

• Verify that all improvements match the contract before closing.

   

✅ Builders:

• Prepare a spec book or upgrade sheet for appraisers.

   

• Keep records of recent sales in the community.

   

• Ensure appraisers can access the site safely and legally, especially during active construction.

   

Frequently Asked Questions (FAQs)

1. Can appraisers use pending sales as comps in new construction?
   Yes, but with caution. Pending sales may be used if no better closed comps are available, and adjustments are clearly justified.
2. What if the appraiser hasn’t appraised in my new neighborhood before?
   That’s why choosing a local firm like Eagle Home Appraisal matters—they already know Gilbert’s subdivisions and market.
3. Do lot premiums count toward appraised value?
   Only if supported by market data. Appraisers assess whether buyers in the area are actually paying more for certain lots.
4. Are energy-efficient features valued in new construction?
   Yes, if they offer measurable value—like solar, smart systems, or HERS ratings. Documentation is key.
5. Do builder incentives affect the appraisal?
   Yes. Incentives like closing cost credits or design center upgrades may impact the “net” price and should be disclosed.

Appraising new construction homes in Gilbert is a specialized process that requires a deep understanding of local developments, builder practices, and market dynamics. While many principles overlap with traditional appraisals, new builds come with additional complexity — from upgrades and lot premiums to appraisal timing and comparable scarcity.

Partnering with local experts like Eagle Home Appraisal ensures your new construction valuation is thorough, accurate, and reflective of today’s evolving Gilbert market. Whether you’re a buyer, builder, or lender, working with appraisers who know the area inside and out gives you the clarity and confidence needed to move forward.

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