Posted by JohnBoy on November 15, 2005 at 19:37:09:
NO! You can not go by the county tax assessor’s value. That has nothing to do with the fair market appraised value. It does not matter that the lender CHOOSES to base anything on that figure. The only thing that matters is what the true fair market value is. To get that value you need to have the property appraised by a licensed appraisor, not the county tax assessor.
What if the appraisor appraises it for $5k more than what you are buying it for? Should the seller be able to make you pay the extra $5k or be able to cancel your contract???
So no, you can not terminate your contract based on that. You can ask the seller to reduce the price but they are not obligated to do so and you can not terminate the contract because of it, period!
BTW, don’t worry about the county assessor’s value, that will get reassessed once the property is sold and that value will go up!
Hi-The contract has a separate appraisal contingency. The lender does not require an appraisal because of the small loan amount. However, the market value (appraised by the county tax assessors) has been found lower than the purchase price. Can a buyer ask for the price reduction; otherwise terminate the contract? Thanks.
Re: Market value is lower than the contract price. - Posted by Brian (UT)
Posted by Brian (UT) on November 15, 2005 at 10:42:55:
Roger
The county assessors amount is almost always lower then the actual fair market value of a house, so a buyer would need a real appraisal to use to back out of the deal, not the assessors figure.
Thanks. There is $2000 difference between the value appraised by the county tax assessor and the contract price. The lender also adopts this number as an appraised value because the loan amount is small. The lender has waived a new appraisal. Do you think whether it is necessary to ask for the price reduction from the Seller or I can terminate the contract without problems? Please provide your opinion.