If the house doesn’t appraise for the sales price, are you stuck with buying the house?

Spring Texas real estate appraisalThe short answer is NO.  Paragraph 4A(1) of the Texas residential real estate contract states: “If the property does not satisfy the lenders’ underwriting requirements for the loan(s),  this contract will terminate and the earnest money will be refunded to buyer.”

If you are purchasing a Spring Texas house on the resale market, paragraph 4A(1) protects you from having to buy a home that doesn’t appraise.  The same level of protection may or may not exist in the purchase of a new construction home. This is because new home builders use their own contracts as they are not required to use the Texas residential real estate contract.

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