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Appraisal on new home

  • Thread starter Thread starter concernedinga
  • Start date Start date

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concernedinga

Guest
Georgia. If a home we are having built appraises for less than the price we are contracted for, are we obligated to close. What are our options? If builder agrees to come down to apprasial price are we obligated? Our banker said that if it appraises for less than contracted price, we have to bring the difference to closing.

Situation: we contracted for one price, however, with change orders and upgrades the price has increased by about $10,000. Also at time we went under contract, the subdivision was 7 years old, but we were one of the first homes in the last phase. Ours is one of the top 6 in price in the newest phase. There are a few homes in other phases that have sold for anywhere from $50-$100K more, with one home selling for $250K more. Others are about $50-$125K less than ours. There are 5 spec homes that are listed at $20K-$50K more than ours.

The truth is, if there was any way we could get out of this deal without losing money, we would do it. We have had numerous disagreements with the builder and just don't feel good about the relationship or the area we are moving in to.

We are to close next week. Any advise would be greatly appreciated.
 


HomeGuru

Senior Member
Your banker is correct as far as mortgage financing.
With respect to the contract, you are probably stuck with the loss of value.
 

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