Appraisal Issues on new construction

[rentalsolutions]

What is the name of your state? IL

Signed contract in Nov 04 for 314900.00 upgreades added total price comes to 348760.62 the first appraisal came in at 320000.00 Builder requested second appraisal and used his appraiser second appraisal came in at 325000.00 ; builder is refusing to accept either appraisalbecause he needs appraisal for 350000.00.

He has checked tax records for all sales in subdivision and surrounding areas, this house is the second house to close in PhaseII first one closed for 310000.00 nothing has closed for more in area.

Builder is refusing to close on home thus, putting us in a bad bind we have lost 2 potential tenants for our existing home because we can't give them move in dates, we have had to return their deposits,can't close anymore real estate deals until this closes advised builder we will sue for specific performance says he doesn't care all we want is to close this and move in what shall we do?

 

[Buk1000]

I am not a lawyer and this is not legal advice. I've been reading more in the news lately about appraisers complaining, (rightfully so), that they are often pressured to inflate appraisals for the party that stands to benefit. the ones that won't do it find it hard to get work. This is, IMO, partly repsonsible for housing becoming so unaffordable, and may result in buyers being upside down in their home loans. Also IMO builders assume they can get higher prices for no reason other than they expect prices will rise, and then may be disappointed that the market or the appraiser doesn't support that price. Good luck.

 

[John Se]

You need to pay for upgrades out of your cash

Pretty simple, your "upgrades" dont necesisarily objectively appraise at cost. Your lender isnt too interested in you Ugrades which inflated the cost of your house. So you will need to pay for the upgrades with CASH MONEY so the sale price will be what the appraised value is. they you will meet the downpayment requirements.