Key phrase is - builder's fiancer thinks it will appraise.
Well of course they do.
If you are concerned, may be worth ordering your own outside appraisal. $500 or so worth of peace of mind.
Have your buyers agent resolve all your issues
Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
Our recommendation is to make sure an "appraisal" clause exists in the agreement that will allow you to exit the agreement should the property not appraise, and that it be done by an independent appraisal concern....not the lenders or builders.
Remember....the last thing you want is to purcahse a home that is really worth less than your purchase price. Take measures to pritect yourself.
If the home does not appraise then you will have several options:
1.) Renegotiate the selling price with the Builder(Seller).
2.) Cancel the escrow, get your deposit back and move on to find a new home.
I would imagine the Builder would agree to option one, lowering their price, if the homes value comes in low. It would make no sense for them to refuse since any future Buyer is going to ask for an appraisal as well and the issue with value will come up again. This will only end up costing the Builder more money in the long run. I do not see your Lender allowing you to come in with the difference yourself, nor would I recommend that you even consider this as an option. I suggest that you be patient and wait for the appraisal to be completed. In the meantime, speak with your Realtor and discuss what your next plan of action should be. Good luck!
The previous answers are all very good. If you are buying the home and being represented by a Realtor when writing the contract , if it is a standard CAR Residential Purchase Agreement, have them check the box under Paragraph 'H' Loan Terms, (3) ii "the loan contingency shall remain in effect until the designated loans are funded". This will give you increased security to wihdraw from the contract if there is an issue with the loan or appraisal.
If you are buying the home using the builder's own contract, which is pretty common with larger builders, then I would definitely have a clause written in to the contract that the purchase is 'subject to the home being appraised at the contract price of higher', or words to that affect.