I recently ran into a similar situation. A house was not complete but the owner was living inside. By not complete I mean a barely working bathroom, no kitchen, no floor coverings, drywall but no tape, texture or paint and no stairs to the basement. I asked a friend who has been appraising for more than twenty years as well as a mortgage broker for the last ten. He referred to the property as "unlendable". You may try to convince the LO that completing the appraisal "subject to completion" is the best way to go. Many times, lenders don't understand our jobs and with a little education, can be persuaded to do things the easy way.