@before40 I actually canceled my contract on the previous home because the appraisal came back 13k lower and the seller did not want to renegotiate. I am under a new contract and about 15 days from closing. I have seen the suspended status with this home.
Yes. The bank absolutely without exception will not issue a loan for more than the appraised value.
Would you buy a car or anything else for more than the sticker price?
You will need to find a way to make the loan value match the appraised value. Usually low appraisals are due to greedy sellers who insist on a high asking price against their agents advice. A seller unwilling to come down is either underwater on the loan or also greedy against the agents advice.
You can also ask for a reappraisal if your agent is confident they can provide comps showing the house was appropriately priced to begin with.
It’s very rare that in a given year the market fluctuates by 10k in home valuation. Home values tend to mirror the rate of inflation which in a normal year is around 1.5% which means in the 6 months it takes to build your house you are looking at a change of +/- couple thousand at the most. I would talk to your agent and see if they can pull comps to support the asking price.