Custom home build potentially not appraising out !?
Zero hour issue, need a hail mary! We went with a custom home builder and agreed to build a house for base price 300k With upgrades and changes to the floor plan we are at 400k The appraiser is having trouble finding comps to justify 400k. I realize we can lose our deposit, but besides that what liabilities could we face? Besides the builder taking money off … what solutions are there to this problem? Final appraisal comes in tomorrow, set to close next week. Needless to say, we will have a sleepless night.
Sounds like your deposit is hard so you could lose that but talk to your lawyer and see if you absolutely have to close? If you do, how much more equity would you have to bring to the table? Did you structure an appraisal contingency? You'd have to weigh the legal/financial risks to determine if it's worth closing. But if the deposit isn't as meaningful, the developer may be open to concessions as who knows when the next buyer comes around AND if the next buyer is willing to pay more than his current offer (you), even with a reduced price. Talk to your agent/lawyer first then run the math and see what you're comfortable losing and what you think the builder would agree to. Good luck.
Appraisers opinions are worth $5 and a cup of coffee. If you like the house and plan on staying for a while, just do it?
Because a bank won’t give you a mortgage for more than it appraised for. Fine if you have the cash to make up the difference but a lot of people don’t.
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