My first question is; Where you working with a Realtor®.? Because that should have never happened in the 1st place... What is the builder doing now? Have you been able to work things out?

Can you let all of us know who is the builder so we can stay out of that builder. I am looking for a house as well in that area.
Thanks

The response from the first agent is true, however, I would try to re-nogiate your sales price to reflect the current appraisal. Based on your loan your lender may not approve the sale, therefore, not eligible to purchase the home and you should have an out. If you are working with a Realtor, they will help you through this process.

Read your contract to see what your options are. If you have a normal builder purchase contract, you have a financing contingency, and you can get your deposit back and find something at market value.