The builder did the appraisal 6 months before the house was completed using the plans of the home to determine value knowing that values would be less when I closed.
The builder did the appraisal 6 months before the house was completed using the plans of the home to determine value knowing that values would be less when I closed.
I_Love_McRedneck said:
Feb 02, 09 at 10:22 amNope, you signed off on it. There’s nothing against the law about people paying a premium for their house. Next time, have it appraised right before you close. The market changes constantly and 6 months is a long time for you to go without an appraisal. Your real estate attorney who reviewed your contract before signing should have told you this. Maybe you can sue him?
Mortgageman said:
Feb 04, 09 at 5:30 amEveryone’s values were up 6 months ago. You agreed to buy the house at that price. There will always be market fluctuation. On the flip-side, would you want him to demand 40k more?
DJ_B said:
Feb 05, 09 at 8:38 amLet me see if I understand your question. You closed on a new construction home? You signed all the paperwork and took title? If you had a problem with the price at closing, why did you close?
First, he couldn’t have used an appraisal that old. Your lender would have required one before closing. A third party appraiser with no ties to the builder or yourself. If the values had declined in that 6 month window, the appraiser would have found comps to substantiate that.
Where do you get 40k?
Jennifer_M said:
Feb 05, 09 at 1:56 pmThis is another example of buyer beware! I doubt that there is much that you can do. According to your contract to purchase you agreed to that price. Usually builders contracts are not contingent on appraisal or even obtaining financing. It will be even harder to prove that the builder knew the value was lower, unless he is currently selling similar units for the lesser amount. If anything, hire an attorney that doesn’t get paid unless you do.
For next time… Don’t let the fox watch the hen house. Get YOUR OWN independent appraiser to justify value. Maybe even pay extra to have him update the appraisal just before closing to make sure you are still getting what you think. If its not new construction… spend the extra $$ on an inspection. Its worth it when you find out theres a major problem with the property.
foreclosures101 said:
Feb 05, 09 at 3:03 pmlike i said before you, don’t buy now since it’s going to be worth a lot less … those Incentives are to catch uneducated homebuyers into ithinking its a great deal you’re getting ..
saberhilt said:
Feb 06, 09 at 9:39 pmYou bought a home based on a six month old appraisal? And the builder’s appraisal at that!
Always have your Real Estate Agent do their own appraisal or home valuation.
Or was this a custom home you were having built? If it’s a Custom home, screw the builder’s appraisal and get your own. Then again, if you were having this home built for you, then you’re probably planning to live there for a while, so what does it matter you’re appraised value now?
tianaramal said:
Feb 06, 09 at 11:24 pmUnfortunately you don’t have any recourse. An appraisal is an opinion of value. If you had the property valued by another appraiser you would have another value. Your only line of defense would have been to see what other new homes were selling for to avoid overpaying for your property. An appraisal estimates value on a specific date and the value can go up or down after the original date of valuation.