If the house doesn’t appraise for the sales price, are you stuck with buying the house?
The 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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Jill Wente, Realtor® with BHG Gary Greene, CRS, MCNE - (281) 804-8626
Jill Wente's hometown is Effingham, Illinois. She earned a B.S. degree in Accounting from EIU in Charleston, Illinois. Jill has been a licensed full-time Realtor with Better Homes and Gardens Gary Greene since 2003. She has been a consistent winner of the Houston Five Star Real Estate Agent award for providing quality service to clients.
