They have no clue of the unique dynamic of the area and fail frequently because of it .

<smile> Some of us thrive living in vibrant, dynamic, ever changing cities.

I grew up in Illinois, used to live in Chicago and used to tutor kids in Cabrini Green, I have a little understanding of the dynamics of Chicago. 

As far as "new construction slowing during a decline", that was true for past econominic cycles, but this downturn's dynamics seem different...in most markets, we are undersupplied when it comes to housing, and also, there will always be hobbyists, i.e. the guy who owns a few car washes in town, or a few cell phones stores, et al who likes the idea of buying some land to build a house/houses, or some rentals. 

This was worth a quick preview to get a visual of the Block Community mentioned above:Youtube link https://www.youtube.com/watch?...

If you do choose to take your chances, I suggest you do so in the same city you live in, so you can have a complete visual of the property before purchase, and be very hands on in the renovation and management process thereafter. 

This graph demonstrates it visually, though your return may drop faster/slower depending on circumstances:This chart shows that the property earned an 18% return the first year, but after year 10 the return has dropped below 12%.

It’s a visual checklist that requires cleaners to take pics and submit them for review in real time (by Properly staff, not us).

This seems to have created a more dynamic range in prices, where it is challenging to discern specific market appeal.So, to your main question, YES, I think you have a valid concern regarding whether an appraiser will value your build higher for better quality/layout, etc.

For a couple years I've been developing scripts, small apps, dynamic API connected spreadsheets, and most recently creating a full stack web app.