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What is an Appraisal in New Construction Central Florida

Updated: Jan 28, 2023






What is a Appraisal in New Construction Central Florida An appraisal is an estimate of a property's value. It is conducted by a licensed appraiser and is used to determine the worth of a property for tax purposes, insurance, or sale. The appraisal will take into account many factors such as the size of the property, its location, recent sales of similar properties in the area, and any improvements that have been made to the property.


Appraisal came in low When you're buying a new construction home, the builder will order an appraisal to make sure that they're not overpaying for the land and construction costs. If the appraisal comes in lower than the purchase price, the builder will sometimes pay the difference. However, there are a few things you can do to protect yourself if this happens to you.


Make sure that you have a written agreement with the builder specifying who is responsible for paying the difference if the appraisal falls short. Ask for a copy of the appraisal report so that you can review it yourself and see where it fell short. Get your own independent appraisal done to confirm that the first one was accurate.

Negotiate with the builder. If the appraisal came in lower than expected, the builder may be willing to negotiate on the purchase price or make concessions such as including upgrades or closing cost assistance.

Understand the market. Keep in mind that the value of a property can fluctuate based on the current market conditions. If the market is currently experiencing a downturn, it may be more difficult to get the price you want for your new construction home.



It's important to note that in Central Florida, the real estate market is quite active, with a high demand for new construction homes. Therefore, if you're buying a new construction home in Central Florida, it's important to be familiar with the local market and understand the fair market value of similar properties in the area.


In conclusion, an appraisal is an important part of the new construction home buying process. If the appraisal comes in lower than the purchase price, it's important to have a written agreement with the builder specifying who is responsible for paying the difference, and to review the appraisal report and consider getting your own independent appraisal done. Additionally, it's important to understand the market conditions and negotiate with the builder to find a fair agreement.




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