It may not be very mustachian, but this is my first home and we are buying a new build. I am obviously new to all this and I thought there might be some collective wisdom in the wonderful community here. I was under contract before realizing a mustache based existence was a possibility, but I think I can successfully stroke my peach fuzz for spending less than 50% of my eligible amount on my house while remaining within biking distance of the school and both workplaces.
Anyway, without further ado...We are scheduled to close 10/7 and the appraisal just came back at $326,000 on our agreed price of $329,600. We were supposed to close by 10/3 per contract and builder pushed it to 10/7 due to city inspector delays. I'm already missing my 45 day rate lock, which will probably cost me $400-500 in fees.
I am meeting the builder tomorrow to discuss the issue and I hoped to get some information. I have a full copy of the appraisal and can give you information about the comps, but I'm not sure what is relevant.
The houses in the area sold for $130-131/sqft and ours is at $132. We did have the builder add some extras, as you always do with new construction. We added more hardwood, gutters, fencing, a storm shelter (in OK with a nervous wife, you have to have one), and some additional paint glazing in some areas of the house. The comps had some of these features and the only thing listed differently on the appraisal is our storm shelter, where the appraiser gave us full quoted cost credit.
My question is what are my arguments for having the builder pay the full difference? Obviously for him this is not only about my sale, but future comps as well. I would imagine he is going to try to get me to pay some or all of the difference. It is a VA loan, so I could walk, but realistically ~1% is not enough to walk away from a home we more or less finished out to our specs.
I wonder what is typical. I assume the builder must come down, but that is not based on experience. I would also be open to adding a few additional items to balance it out. If he added a few additional ceiling fans and wired my wall mount and home theater I might be willing to pay more of the difference. To my mind that would allow him to keep his comp price up while giving me something for my money. Is that legal? Would we have to reappraise or tell the bank?
Please let me know my options and what you did or have seen done in similar situations. I have less than 24 hours to get my ducks in a row. If you need more information let me know and I will be happy to provide it.