KB Homes, and the lender is KBHS Home Loans of which they own half. The loan officer said they added a little bit just in case the elevation, lot, or overall community were changed...but that isn't true to what actually was in the contract. They calculate the appraisal max to be {[House Elevation Price + Market Allowance for Options/Upgrades (Ex. 8% of House Elevation Price)] + Land Purchase Price/Premium}. In the end, they added 2-3K as a cushion for the Sale Price on the LE to account for what may never happen. As I see it, they should never go higher than the forecasted Appraisal Max on the LE. If the purchase price ends up higher, you will come out of pocket. If it is lower, well, it's lower.