On new homes this is not common, because builders price homes near what others in the community sold for. It can happen when prices are falling.
Read what your contract says about the appraisal before you sign. We point that part out.
What happens if the appraisal comes in low on a new home?
The lender only lends on the appraised value. The builder may lower the price, you may pay the difference, or your contract may let you back out.
More questions
- How long does it take to buy a new construction home?A home that is already built can close in about 30 to 60 days. A home that is not built yet can take several months.Read the answer
- What are the steps to buy a new construction home?Talk to us, get pre-approved, pick your home, sign the contract and pay the deposit, get the home inspected, then close and get your keys.Read the answer
- Do I need an inspection on a brand new home?Yes. A new home can still have problems. Your own inspector finds them while the builder still has to fix them.Read the answer
- Can you negotiate with a home builder?Yes, but usually not on the price. Builders more often give on closing costs, the rate, or upgrades.Read the answer