Vero: Since it is Feb. 2009, Welcome to the neighborhood!

Vero you definately want to have an independant appraiser appraise the home for todays value. Builders do not like to reduce their prices. You may be better offer to try and negotiate free upgrades or even at builders cost. Whatever you do make sure you do not break your contract and risk losing your deposit. You should have had a claus in teh contract regarding property appraissing at closing, if not be careful. You should ask your buyer broker or the listing broker tio assist you with this. Good Luck

Vero, you would be well within your rights to go ahead and have an appraisal done on the home and discuss appraisal findings with your builder. I had to step in for someone this year when their new home would not appraise for full value, and get their purchase contract through some tense renegotiations based on the lower value of the home. Keep in mind, this does not give the buyer ultimate power over the builder. The builder may have the right, per the contract terms, to walk away from the contract with you and sell the home to someone else. If you don't have an agent representing you on this builder job - get one. These negotiations can get emotional and very heated, and you need cooler heads prevailing with a win:win goal in mind for the builder and the buyer.

We would suggest that you need a good comparative market analysis and very likely may also need to assistance of a real estate attorney depending on whether the current sale prices have fallen very far below what you paid. Try to remember that if prices had actually increased during the construction of your home, you would not want your purchase price to increase. However, if there is enough money involved, you should still consider your options. Perhaps the developer is open to re-negotiating.

We are assuming that you did sign a contract to purchase the home at an agreed upon sale price. Is there an adjustment clause that allows the price to increase or decrease with changing building costs? Is there a financing contingency that could impact the appraisal and therefore open the negotiation for a lower sale price if the appraisal is low?

Is this home being built for you as a primary or secondary residence? How much escrow down-payment do you have at stake? If you would be better off forfeiting this deposit and buying another home elsewhere, your attorney will need to advise you to be sure that you are protected from a "specific performance" action.

If the price has dropped an insignificant amount, try to keep in mind that over time, the value will increase. It is not always possible in buying stocks or buying a home to do so at the exact bottom nor sell at the exact top. Good luck to you.

Vero,

This can be a problem in times like these.....

If you have concern you might want to consider having an independent appraiser do an appraisal for you to be on the safe side.

The reality is that prices are not only dropping on resales but new construction as well. Your concern is justified.

Good luck
The "Eckler Team"

Vero
Congrats!
You are buying at the bottom of the market.

If not, then talley Hoo!

or if you have a GREAT realtor,,,,renegotitiate if prices have fallen the appraisal willbe low