Posted by Nate(DC) on September 12, 2002 at 16:30:11:
Then I suggest you decide not to buy their property.
NT
Condo appraising question.I need some ideas - Posted by RR
Posted by RR on September 11, 2002 at 19:46:28:
I have an opportunity to buy a condo close to my home via regular way(not creative financing or RE) , but I am afraid that it might be a slight possibility that it won’t appraise, and I will end up wasting money with the appraisal report, asking price is 160k, I am offering 158k The realtor told me that this offer is reseanoble but if does not appraise there’s nothing she can do I will have to come up with the diffence.
Any ideas for this problem?
Thanks in advance
RR
appraising question - Posted by David Krulac
Posted by David Krulac on September 12, 2002 at 20:40:08:
most contracts have a financing contingency. so if the property doesn’t apprise and you are going for a specif loan amount as specified in the contract, the deal is off if it doesn’t appraise.
now you will be out the appraisal fee, but you will get you’re deposit back.
It the appraisal id close to your contract price the seller would be an idiot not to accept the apprasial price. But I can speak from personal experience that a property I had under contract didn’t appraise and had a structural defect not disclosed. The seller would not budge on their asking price, I walked albeit lighter in the wallet.
I have since written into subsequent contracts that if we don’t settle because of appraisal/inspection issues then the seller must reimburse for my out of pocket expenses. And that has not come up since.
David Krulac
Central Pensylvania
Re: Condo appraising question.I need some ideas - Posted by Tim Fierro (Tacoma, WA)
Posted by Tim Fierro (Tacoma, WA) on September 12, 2002 at 01:16:31:
Ditto what Nate said.
Hopefully you only had a small earnest money deposit so if the appraisal comes back way out of whack, you are only out the earnest money.
But in the meantime, read your contract to see if there is a way out because of an appraisal that doesn’t satisfy the mortgage. Also check to see if you have a financing contingency that states you do not purchase if you can not attain financing.
If you have the clause dealing with the appraisal, then you should be ok. If you do not, then your finance contingency is your next avenue. Do not release the contingency yet, and instead submit an addendum to cover the appraisal situation. If the addendum doesn’t fly with the sellers, make sure you abide by the time limits in the financing contingency and if you are unsure, then back out. Depending on how you dated the financing contingency, you may get out because when the appraisal comes back (and if low), by the lender not approving the loan.
Key: Read your contract to see where you stand. You may have the clause and don’t know it, or you may have other contingencies that allow you to negotiate another addendum now before those contingencies have to be met so you have a way out through them.
Re: Condo appraising question.I need some ideas - Posted by Nate(DC)
Posted by Nate(DC) on September 11, 2002 at 20:45:56:
Write an appraisal contingency into the contract. The realtor should know how to do this. If not, get a new realtor, she’s an idiot!
NT
Re: Condo appraising question.I need some ideas - Posted by RR
Posted by RR on September 12, 2002 at 13:11:53:
thank you guys
well , the other party does not accept any contingencies regarding the appraising.