There isn’t a price put on the house to be built that we have reserved, because the builder said he wants to see what lumber prices are going to do. However, the builders agent did give us an estimate of what the price would be. Doing some research of recently sold homes in that area, all newly built, the house we are looking to buy is a whole lot more, price range wise. I’m talking $100,000 more and up. Same builder, different model, same size – all sold within the past month and a half on the same street. (Builder has been building all new homes on this street the past year.)
For reference, the foundation and footers have been put in and they’re building this and a few other home(s) now on the plot of land.
With this in mind, please understand that I know there is not a price on the house yet. But the price range estimate that we were given makes us a little uneasy when it comes to appraisal time. Has anyone seen this happen before? Where builders are not putting a price on a home yet because of lumber but allowing lot reservations, but when they do, the comps do not match up at all? Or are appraisers taking lumber prices into consideration with their appraisals? Thank you so much in advance.