Appraisals before and after --- issues already...
So finally have 'bout everything in line to start breaking ground and the construction appraisal came back so low we are rethinking the situation (do they ever come back high...:-)...granted we are in a depressed area of the country where a high end house costs ~$100sq/ft to build (vs $150 or more that is seen in other parts of the country)....but the cost to build came back as $370k and the appraisal came in at $290k - (this excludes any land).(3350 ht/cooled) and quite a bit of porches and large garage.
Has anyone else experienced this much of a discrepancy between cost to build on appraisal and appraisal value?
Our true cost to build is somewhere in between - floating around that $100sq/ft and the appraisal is ~$85sq/ft. I havent seen it yet - going off what i've been told.
My concern is even if we/the bank figure out a way to get the construction loan to go through - the appraisal on the back end will come out the same way ...unless someone is able to fudge on the numbers...(we have a different bank we are going through on the permanent side)
would appreciate any input...