The only safeguard for value concerns during the construction period will be the appraisal. As Carrie noted, if the appraisal comes in low, the builder will most likely adjust the price to match the appraisal. This isn't a given, but it is likely considering most just want to get their inventory off the books. You won't get your financing if the appraisal comes in low, and that doesn't benefit anyone. If values really have fallen as much as you believe, your best bet is to sit back down with the builder. Of my 3 new build deals this year, all 3 have been renegotiated due to similar concerns. If the appraisal comes in at the purchase price, especially with the contracts that builders use, you will most likely lose your earnest funds and leave yourself open to being pursued for additional damages should you back out of the transaction. Depending on how much earnest money is at stake, some people might find it attractive to simply cut their losses if values are really staggering. Builders know this. Believe me when I say that the majority want a completed transaction much more than your earnest money, so open the lines of communication and see if they are willing to address your concerns.