Contingency period and how it works

[rahul]

Hello,

I am new to this site and was recommended to it by friend who’s been a member of this site for a long time. I am in the process of buying a home and do not have full confidence in my agent and hence needed a few clarifications on this site. Its possible that my agent is doing the right thing.

As I mentioned I am in the process of buying a home, now on Friday the appraisal came in 24K below the purchase price. This was quite surprising to all of us since we had been involved in quite a bit of back and forth negotiation and the purchase price was 30K less than the listing price and at least I thought it was a decent deal in the current market.

The seller agents is vigorously contesting the appraisal and has submitted more relevant comps to the appraisal through my mortgage banker. They feel the comps used are incorrect or inaccurate and does not represent the property. Another major factor is the measured square footage apparently is 180 sqft less than whats listed in the records. The seller’s agent is also vigorously contesting that. Even my mortgage banker told me that this is one of the worst appraisals that he has seen and the appraiser was not familiar with the area at all (he’s apparently from orange county and the area is poway). So there maybe a new appraisal done by Monday or Tuesday…but we are not sure if the appraised value is going to change. The appraiser may consider the new comps provided by the seller’s agent and re-evaluate. We are not sure right now.

But, my contingency period ends on Tuesday and I have paid 5K in earnest money deposit. I discussed this with my realtor and suggested that we get this extended now since we have to renegotiate the price. But, my agent says that’s not necessary, according to her I have to sign a appraisal contingency release document and unless that is signed by me the contingency period doesn’t end. I am not sure what this means, I think if we get the contngency period extended now I would have more time to re-evaluate based on whatever the new appraised value comes in on Monday\Tuesday. I am not sure why she feels we should not extend the contingency period…she’s just telling me “Don’t worry you won’t loose your 5K, we don’t need to ask for an extension on the contingency period”.

I am not really sure how to deal with this situation, I have a feeling that my agent is very reluctant to do anything which may jeopardize the deal. Any advise would be highly appreciated.

[sdrealtor]

Removing contingencies requires you to actively remove them in writing, tehy do not disappear with the passage of time so your agent is most likely correct. If you dont remove them, the listing agent can send you a “notice to perform” which allows them to cancel if you do not remove the contingency by that deadline (usually 24 to 48 hours). In that case you could lose the house but not your deposit.

[sdrealtor]

Removing contingencies requires you to actively remove them in writing, tehy do not disappear with the passage of time so your agent is most likely correct. If you dont remove them, the listing agent can send you a “notice to perform” which allows them to cancel if you do not remove the contingency by that deadline (usually 24 to 48 hours). In that case you could lose the house but not your deposit.

[sdrealtor]

Removing contingencies requires you to actively remove them in writing, tehy do not disappear with the passage of time so your agent is most likely correct. If you dont remove them, the listing agent can send you a “notice to perform” which allows them to cancel if you do not remove the contingency by that deadline (usually 24 to 48 hours). In that case you could lose the house but not your deposit.

[sdrealtor]

Removing contingencies requires you to actively remove them in writing, tehy do not disappear with the passage of time so your agent is most likely correct. If you dont remove them, the listing agent can send you a “notice to perform” which allows them to cancel if you do not remove the contingency by that deadline (usually 24 to 48 hours). In that case you could lose the house but not your deposit.

[sdrealtor]

Removing contingencies requires you to actively remove them in writing, tehy do not disappear with the passage of time so your agent is most likely correct. If you dont remove them, the listing agent can send you a “notice to perform” which allows them to cancel if you do not remove the contingency by that deadline (usually 24 to 48 hours). In that case you could lose the house but not your deposit.

[mike92104]

I would be more interested in fighting the new appraisal. I wouldn’t just allow the listing agent to decide the appraisal wasn’t correct.

[mike92104]

I would be more interested in fighting the new appraisal. I wouldn’t just allow the listing agent to decide the appraisal wasn’t correct.

[mike92104]

I would be more interested in fighting the new appraisal. I wouldn’t just allow the listing agent to decide the appraisal wasn’t correct.

[mike92104]

I would be more interested in fighting the new appraisal. I wouldn’t just allow the listing agent to decide the appraisal wasn’t correct.

[mike92104]

I would be more interested in fighting the new appraisal. I wouldn’t just allow the listing agent to decide the appraisal wasn’t correct.

[rahul]

Agree…ideally I should be fighting the new appraisal. But, as of now the seller won’t sell at the appraised value which is 24k below the purchase price…

[rahul]

Agree…ideally I should be fighting the new appraisal. But, as of now the seller won’t sell at the appraised value which is 24k below the purchase price…

[rahul]

Agree…ideally I should be fighting the new appraisal. But, as of now the seller won’t sell at the appraised value which is 24k below the purchase price…

[rahul]

Agree…ideally I should be fighting the new appraisal. But, as of now the seller won’t sell at the appraised value which is 24k below the purchase price…

[Author]

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