Can I Use DwellingCost.com for "proposed" construction?

Q. Can I Use DwellingCost.com for "proposed" construction?   

A. As part of the appraisal process, an appraiser must determine the quality of proposed improvements based on plans and specifications (or other information – if plans are unavailable). Ideally, you have been provided adequate information to establish the quality of the finished dwelling and determine the overall quality of the finished components. Since you are estimating the “replacement” cost and not the cost to construct a replica, the quality rating should reflect those items needed to build a market-suitable replacement (similar utility) and not add items that the owner/builder may be included but have no contributory value in the local market.  

We suggest using the plans to get your best estimate of the quality. If they have not provided elevations, an appraiser should ask for them - as they may help you to visualize the finished product. Also, if the Client has provided a detailed “budget” for the project, it may be a good source for replacement costs, and you can use our tool as additional support.  

Concerning site value, the replacement cost tool estimates replacement “cost” for the dwelling, whereas the cost approach is an estimate of “value.” We provide you with the necessary tools to estimate Replacement Cost New, and then you need to “take it from there.” The process of calculating depreciation (from all sources), as well as the estimate of site value, is part of the appraisal process and requires local knowledge of the market. This is where the appraiser is the expert, and a cost service cannot do this accurately.