How to handle incomplete new house on final inspection report

[Doug in NC]

Just wondering how other appraisers handle incomplete items when performing final inspections. I did a final today where the house was supposed to be finished. Builder is still finishing up a few last minute fixes, "luxury vinyl" flooring covers most of the first floor and it was all covered by a taped down paper protection layer, and final cleaning has not been done. My estimated cost to complete everything is $500 or less (little over one 100th of a percent of value).

 

[CANative]

There is a section on this in the selling guides.

 

[Terrel L. Shields]

"Splain what is unfinished, and go on...

 

[CindyR]

i don't consider final cleaning as a required repair. if "construction" is complete then it is done.

 

[Marty Boone]

When you call to schedule the final inspection ask your point of contact to confirm that the house is 100% complete and the utilities are turned on. Ask for their email address so you can send them the scheduled date and time of the final inspection and ask them to confirm prior to the scheduled appointment that everything has been 100% completed. If you receive confirmation and arrive to find that the kitchen appliances haven't been installed or there are four painters still working, take a bunch of pictures, finish the inspection, attach your email and send the report as "not complete".

 

[Flakey]

Someone is always asking me what I consider 100% complete.

 

[Sid Holderly]

Contractor has submitted his bill, but subcontractor has not finished, tykpical. List, cost out and explain. Often not enough to change the valuation. Depends on the lender also.

 

[Tawfik Ahdab]

I would consider clean up vital if I went to the backyard and a discarded nail went through my foot. I wouldn’t consider dusting part of cleanup but I wouldn’t want to see paint still dripping on tarps or the downspouts detached from the gutters either.

Completion means move-in condition to me. I have to sign the 1004D. I don’t owe builders or contractors any favors at all, Especially since in my experience they all too often try to jump the gun.

 

[Tim The Enchanter]

Here's one I did recently. The gas co was connecting the meter 1st time I was there. Rubber gloves were covering the shower faucets for some reason, and 1 door knob was missing. Still the blue tape at re inspect though.

The unfinished items are complete with the exception of very minor paint touch ups as noted by pieces of blue tape. This has no effect on market value. The gas meter is connected and service is on. There are no missing doorknobs, and shower and tub faucets are uncovered. Subject is otherwise in the same condition as at the time of the original appraisal. The Building and Safety Dept web site shows the Certificate of Occupancy in progress, see attached.

 

[Doug in NC]

The biggest game stoppers for me have been when carpet has not been installed in one or more areas, yard is supposed to be sodded and it is not, and when interior paint is substantially incomplete (I regularly overlook a few blue tape touch-up paint issues, but will not pass inspection when multiple rooms need a final coat of paint).