The Uniform Standards for Professional Appraisal Practice which governs appraisers say that the appraiser needs sufficient data to produce ‘credible assignment results’; however, what an appraiser deems sufficient may not align with Capital City Bank.  As such, the following are guidelines to assist in knowing if you have sufficient data to acquire an appraisal for proposed construction or a renovation project.  

1. Plans and Specification
   • Plans should be detailed sufficiently so that you can discern building dimensions, height, material build‐out, floorplan, and elevations.  For multi‐million dollar projects plans and specifications can be separate documents, meaning you get a set of plans and specifications may be in a book format.  Most of the time plans will contain sufficient specifications for appraisal purposes.
   • Basic items needed include:
     • Architectural and General pages showing building height, cross sections so you know what type of construction.
     • Finishes schedule to identify wall types, trim, doors, floor coverings, etc..
     • Floorplan
     • Building dimensions
     • Life safety (does it have sprinklers)
     • Elevations (all sides of the building)
     • HVAC - looking to see if the entire building is heated/cooled which is important for industrial.
     • Site or Civil Plans - need to know where the building will placed on the parcel, how many parking spaces, identify circulation of traffic, and location of ingress and egress.
        
2. Costs
   •  Costs should be broken down sufficiently that the appraiser can utilize Marshall & Swift (or similar service) to cross check reasonableness of the costs provided.  Site costs need to be broken out separately as well as any personal property (particularly important for hotels, c‐stores, and car washes).
      
3. Contract to Purchase (if applicable)
    
4. Proposed income producing properties need to have a pro forma; estimate as to anticipated income and expenses.
    
5. Any pre‐signed leases (primarily apartments, retail & office) or contracts (multi‐unit projects such as subdivisions or condos).
    
6. Does this information match?  If your plans indicate you have asphalt paved parking spaces, is there a line item in your costs for that?  Do your costs include any FF&E?  Most C‐store costs don’t include the fuel tanks and pumps as that’s specialized equipment which is installed by a separate party.
    
7. With computer technology artist’s renderings are becoming more popular; however, most of the time this is insufficient for appraisal purposes as they don’t have dimensions, don’t identify construction elements or materials, and are lacking in factual data.  It’s as the name implies – it’s more of a picture. Plans need to be factual in nature and reflective of what will be constructed.

Proposed construction and renovated real estate are considered complex property types.  They require an As Is Value, an As Complete Value, and an As Stabilized Value.  These guidelines are to assist in understanding what to ask for, what items you need to acquire to produce credible assignment results, and why. 

1. Need market value As Is 
   • Typically this is Land Value on proposed properties.  Large more complex properties may consist of more than just ‘land’.  Land can also have entitlements or maybe some site improvements (land clearing, grading, etc.).  If the land includes entitlements it’s good to know when or if the entitlements expire.  Most approvals will give a time limit as to when improvements need to be constructed.  If the real estate is a renovation project, the As Is value is typically valued by estimating the As Complete Value first, then deducting renovation costs.  This is not always the case, but finding comps needing ‘similar renovation needs’ or ‘overall condition’ can be difficult depending on the level of renovations planned.  Please note the Market Value As Is is always needed – even if you don’t use it for a lending decision.
      
2. Prospective Market Value Upon Completion
   • This is the value once construction is complete, so bricks, sticks & dirt; however, it may or may not represent stabilization (occupancy at market rates & terms).  So, if you have an owner occupied property, the As Complete & As Stabilized scenarios will be one in the same.  However, if you have a multi‐tenanted property, the As Complete and As Stabilized values may or may not be the same.  Why?  Because unless a multi‐tenanted property has pre‐signed leases, or is in high demand, market occupancy levels cannot be achieved upon completion of construction; for example it takes a little time to lease‐up.
      
3. Prospective Market Value Upon Stabilization
   • This is the value once construction is complete and it is occupied at market levels (again, if owner occupied these are one in the same).

Note: Items #2 and #3 say Prospective - the reason for this is that it is an indication as to when a project will be constructed and ‘when’ a project will be occupied at market levels.  These are future dates which are estimated based on how long the contractor estimates it will take to complete construction, market evidence – so timing of other similar projects, and any other customary considerations an appraiser may consider.  Also noted, these are options in your drop down menus in RIMS (Job Managers).