Understanding the Appraisal Process for New Builds

By Steven Thomas | Refind Realty

Introduction

If you’re buying a brand-new home, you might think the appraisal is just a formality. But that’s not the case — especially in today’s market.

As someone who’s helped hundreds of new construction buyers across Dallas-Fort Worth, I can tell you the appraisal can make or break your deal. And if you're not prepared, it can throw your budget and closing timeline off track.

Let’s walk through what the appraisal process really looks like when you're buying a new build — and what you can do to avoid surprises.

What Is a Home Appraisal and Why Does It Matter?

A home appraisal is an independent evaluation of a property’s fair market value. It's ordered by your lender, and it ensures the home you're buying is worth what you're paying — or at least what you're financing.

For new construction, this can be tricky. The home might still be under construction when the appraisal is scheduled. Or the upgrades and materials used may not yet match what was included in the purchase contract.

If the appraisal comes in lower than expected, you may have to pay the difference in cash, renegotiate with the builder, or even walk away.

When Does the Appraisal Happen on a New Build?

Typically, the appraisal is scheduled once the home is close to completion. That means:

• The home has all its major systems installed (plumbing, electric, HVAC)

• Flooring and cabinetry are in place

• Landscaping is mostly done

• The builder is about 2–3 weeks from final walk-through

If the home isn’t ready, the appraiser may delay or issue a “subject to completion” value — which could require a re-inspection later.

How Is a New Construction Appraisal Different from a Resale?

• Limited Comparable Sales: Appraisers may not have many recent sales nearby of similar new builds, which can affect the final value.

• Upgrades and Add-Ons: Builders often include premium materials, structural upgrades, or lot premiums that may not be fully reflected in comps.

• Unfinished Work: If the appraiser sees anything incomplete or missing, they may reduce the value or flag it as needing follow-up.

That’s why it's important to work with an agent who communicates with your lender and builder to make sure the appraisal process goes smoothly.

How I Help Clients Navigate the Appraisal Stage

I always prep my clients for the appraisal early on. Here’s what I focus on:

• Reviewing upgrade lists and making sure the appraiser gets a copy

• Confirming completion timelines with the builder

• Comparing builder base price to actual sales in the area

• Coordinating with your lender if a second appraisal or reconsideration is needed

Want to learn more about navigating new construction? Download the full New Construction Home Guide or check out my New Construction Webinar.

What Happens if the Appraisal Comes in Low?

This is where things can get complicated. If the appraisal is lower than your contract price, you have a few options:

1. Cover the Gap in Cash
   If your budget allows, you can bring extra funds to closing.

2. Negotiate with the Builder
   Some builders may adjust the price or offer credits, especially if it's a large gap.

3. Request a Reconsideration of Value (ROV)
   Your lender may allow you to submit additional comps or documentation to challenge the appraisal.

4. Cancel the Contract
   Most new construction contracts include an appraisal contingency, but not all. I always make sure clients understand the terms before signing.

Avoiding Appraisal Surprises

Here’s what you can do to stay ahead:

• Get a breakdown of all upgrades and features in writing

• Ask your agent (that’s me) to preview comparable sales

• Get pre-approved early so you know your budget

• Have a strategy in place in case of a low appraisal

Need help? Start here:
➡️ Get Pre-Approved
➡️ Dallas-Fort Worth New Construction Homes

Conclusion

The appraisal is one of the most overlooked parts of buying new construction — but it’s also one of the most important.

If you’re not prepared, it can cost you time, money, or even your dream home. But with the right guidance, it doesn’t have to be stressful. I’ll walk you through every step.
Download the Lone Star App here: https://lonestarliving.hsidx.com/@sthomas

You're Always Home With Refind Realty

FAQs: Appraisals for New Construction Homes

Do all new construction homes require an appraisal?
Yes, if you're financing the purchase. Cash buyers are the only exception.

Can I use a different appraiser?
No. The lender chooses the appraiser from a third-party pool.

Will the appraiser include my upgrades in the value?
Only if they’re documented and considered typical for the area.

What if the appraisal is higher than my contract price?
Good news — you’re buying with built-in equity.

Can I appeal a low appraisal?
Yes. It's called a Reconsideration of Value (ROV). I help my clients with this when needed.