Sorry for the late answer but as far as I know the appraiser has to see the contract prior to completing the appraisal. The contract hopefully had the upgrades and the contracted sales price (including the upgrades) in it. Did you add all of the upgrades after? If so than you will need to pay for them yourself, but that should have been explained to you at the time.

Having a buyers agent is important when buying new construction!

This may be more to a legal question now. AND the possibility of getting another appraisal done. But overall you may have only the option of going back to the builder, but he is no way obligated to renegotiate.
Another Avenue is call the lender and the appraiser to see if there is anything you that can be done to raise the appraisal. Sounds like you have already attempted this but go back again!

you may have overinflated property values from the builder which due to market deterioration may be stressing the appraisal to be able to be increased. I do not know! but only the appraiser can answer this. Ask!

I am not an appraiser but seen enough of them to know... and your situation is not uncommon especially in today's market conditions.

The problem with upgrades they are considered but in a more complicated matter. For instance just because you put $20k into upgrades does not mean you will get a $20k increase in your appraisal.
What matters more to an appraisal is comps and sq. footage. the upgrades will make it more sell-able but not necessarily more valuable. Beauty is in the eye of the beholder. Flooring makes a property more appealing but not necessarily more valuable to the appraisal.

You have some work ahead of you. Hope it all works out for you.

Larry Sarlo
Weichert Realtors http://www.Lsarlo@comcast.net
609-868-1171

The upgrades are normally rolled into the purchase price and the appraiser goes off of that total number. However, the appraiser still has to justify the price in the marketplace (i.e. so you don't overimprove)

What seems very odd is that the builder recommended the lender which hired the appraiser. Seems to me that if the appraisal came in low, the builder should have lowered the price -- especially because the builder couldn't blame you for picking a lender that didn't know the area etc etc. It was their own choice of lender.

Since you have alreay closed, I guess it is too late to do anything. But for anyone else in that situation, might be a good idea to have some language in the contract which states that if the full value is not substiantied by an appraisal (especially you are using the preferred lender) then you get a price reduction or renegotiation.

Ruth Bonapace
mortgage lender
ruthbonapace@gmail.com
201 741 5269