Appraisals

[Erica S.]

We are currently in the middle of a rehab project. We have buyers lined up, someone we know personally. They are getting a conventional loan and want to close as quickly as possible. We took the house back to studs on the inside and are right in the middle of finalizing plumbing, electrical and heating. Drywall goes up next week. 

The lender is pushing to have an appraisal done right away to get into the underwriting process. They claim that this will not hurt the value, as the appraiser will just do a projected value based on the work we will be doing, then come in at the end to inspect what has actually been done. We would be supplying him with a list of the work we plan to do, materials we will use, etc. 

Has anyone dealt with a similar situation? My biggest concern is that this may hurt the appraised value. Any thoughts on this would be very helpful! 

-Erica