Practice Area
Construction Defect Valuation
Valuation of the market consequences of an alleged defect, repair plan, disclosure history, or residual buyer concern.
Technical Condition
The defect must be defined before its value effect can be analyzed
Engineers, contractors, or other technical experts typically identify the condition, cause, and appropriate repair. The appraiser’s role is different: determine whether the condition, proposed cure, or property history affects marketability or value.
Valuation Effect
Repair cost is not automatically diminution in value
A cost to cure may be relevant, but it does not by itself measure the market’s response. The valuation assignment may need to distinguish restoration cost, betterment, temporary impairment, functional loss, disclosure consequences, and possible residual stigma.
Questions the Valuation May Address
What changes in the market because of the condition?
Before RepairWhether the unresolved condition changes price, marketability, financing, use, or buyer demand.
After RepairWhether completed or assumed corrective work restores the property to its unaffected market position.
BettermentWhether new work replaces aged components or otherwise leaves the property better than before.
ImpairmentWhether the condition or cure reduces access, utility, layout, appearance, or another characteristic buyers value.
DisclosureWhat buyers would know about the condition and repair history in a hypothetical sale.
Residual StigmaWhether informed buyers continue to recognize and price the adverse history after repair.