Appraisal for Reselling A New Construction?

[Alex Smith]

Hi all,

I am located in North Carolina and am looking to have a builder build new construction and then I sell it once complete. I have a vacant lot that I can build a 1200 SqFt house on. The custom builders in the area are very competitive and are offering pretty inexpensive builds vs comps.

If the lot was purchased recently for 20K and the turn-key cost to build is $200K, after I close on the house (bank said appraised value would be 220K), would a new buyer have problems with it getting appraised over $220K even with other comps selling for 300K+?

After the build, I hope to list it for $300k.