Last week we ran into a bit of a snag. Just when we were ready to close on our construction loan, we were hit with the reality of a sagging real estate market. Despite credit for our energy efficient upgrades, our updated appraisal came in $50,000 less than the one done just six months earlier (July 2007). That appraisal also happened to be the construction budget we were working with. The lower appraised value quickly put a “wrench in the gears” and brought our forward momentum to a halt.

We have every intention of moving forward with this project. I personally believe it is too important for our family, and for the world in general. In the coming weeks we will be reassessing our “needs” versus “wants,” and hopefully renegotiate with all parties involved. The simple fact is, this project “needs to make economic sense” if it is going to be a successful project. We simply can’t afford to pay more for the house than it is worth.