Contingency period and how it works

[ybitz]

[quote=andymajumder]Now the property I was trying to buy has been appraised much lower than the purchase price.
Seriously…why aren’t sellers having banks do these appraisals up front and setting more reasonable ask prices, thus saving everyone from hours if not days of wasted time??? The whole painful offer-counteroffer process becomes completely moot when the bank rolls in and values the home at less than even the initial offer.

Basically, the square footage of the house was found to 10% less than whats in the tax records and the owners have no idea…..[/quote]

I agree…it would be so much easier if the seller would get an appraisal before putting it on the market. It’s to the seller’s advantage too because it lowers the chance of buyer falling out of escrow because of low appraisal.

I also think it would be much more efficient for seller’s to make inspections available when the house is on the market (as opposed to waiting until escrow period). Buyers would know what they are getting into, and seller would get higher quality buyers that already know what to expect in terms of the state of the house. More information upfront makes for a more efficient transaction process.

[sdrealtor]

An apparaisal is a very subjective opinion and there is no right or wrong number, just one persons opinion. Sellers appriasal is unusable and could result in a different number than they buyers lender. Its the buyers lender’s responsibility to chose the appraiser.

As for a pre lisitng inspection its good to get your house in order but as a buyer would you accept the sellers inspection or would you want to have someone you hire do your own? As a buyer would you spend 400 to 500 upfront before making an offer to know what you were getting yourself into?

[sdrealtor]

An apparaisal is a very subjective opinion and there is no right or wrong number, just one persons opinion. Sellers appriasal is unusable and could result in a different number than they buyers lender. Its the buyers lender’s responsibility to chose the appraiser.

As for a pre lisitng inspection its good to get your house in order but as a buyer would you accept the sellers inspection or would you want to have someone you hire do your own? As a buyer would you spend 400 to 500 upfront before making an offer to know what you were getting yourself into?

[sdrealtor]

An apparaisal is a very subjective opinion and there is no right or wrong number, just one persons opinion. Sellers appriasal is unusable and could result in a different number than they buyers lender. Its the buyers lender’s responsibility to chose the appraiser.

As for a pre lisitng inspection its good to get your house in order but as a buyer would you accept the sellers inspection or would you want to have someone you hire do your own? As a buyer would you spend 400 to 500 upfront before making an offer to know what you were getting yourself into?

[sdrealtor]

An apparaisal is a very subjective opinion and there is no right or wrong number, just one persons opinion. Sellers appriasal is unusable and could result in a different number than they buyers lender. Its the buyers lender’s responsibility to chose the appraiser.

As for a pre lisitng inspection its good to get your house in order but as a buyer would you accept the sellers inspection or would you want to have someone you hire do your own? As a buyer would you spend 400 to 500 upfront before making an offer to know what you were getting yourself into?

[sdrealtor]

An apparaisal is a very subjective opinion and there is no right or wrong number, just one persons opinion. Sellers appriasal is unusable and could result in a different number than they buyers lender. Its the buyers lender’s responsibility to chose the appraiser.

As for a pre lisitng inspection its good to get your house in order but as a buyer would you accept the sellers inspection or would you want to have someone you hire do your own? As a buyer would you spend 400 to 500 upfront before making an offer to know what you were getting yourself into?

[sdduuuude]

I’d be just as leery of your mortgage broker telling you it was a bad appraisal. Of course they’ll say that, if it means killing a deal and their commission.

If it were me, I would seriously re-evaluate prices in the area to make sure I’m really getting this house at a fair price and also seriously consider backing out if it turns out I aimed to high with my offer. Maybe make a new offer at the appraised price.

[sdduuuude]

I’d be just as leery of your mortgage broker telling you it was a bad appraisal. Of course they’ll say that, if it means killing a deal and their commission.

If it were me, I would seriously re-evaluate prices in the area to make sure I’m really getting this house at a fair price and also seriously consider backing out if it turns out I aimed to high with my offer. Maybe make a new offer at the appraised price.

[sdduuuude]

I’d be just as leery of your mortgage broker telling you it was a bad appraisal. Of course they’ll say that, if it means killing a deal and their commission.

If it were me, I would seriously re-evaluate prices in the area to make sure I’m really getting this house at a fair price and also seriously consider backing out if it turns out I aimed to high with my offer. Maybe make a new offer at the appraised price.

[sdduuuude]

I’d be just as leery of your mortgage broker telling you it was a bad appraisal. Of course they’ll say that, if it means killing a deal and their commission.

If it were me, I would seriously re-evaluate prices in the area to make sure I’m really getting this house at a fair price and also seriously consider backing out if it turns out I aimed to high with my offer. Maybe make a new offer at the appraised price.

[sdduuuude]

I’d be just as leery of your mortgage broker telling you it was a bad appraisal. Of course they’ll say that, if it means killing a deal and their commission.

If it were me, I would seriously re-evaluate prices in the area to make sure I’m really getting this house at a fair price and also seriously consider backing out if it turns out I aimed to high with my offer. Maybe make a new offer at the appraised price.

[andymajumder]

Guys, I really need some help here. In my case based on some more comps which the seller’s agent had sent the appraiser has increased the value by 25K. Now from being 15K below the purchase agreement price, its 10K above. However, the house measures 200 sqft less than what it was listed for. I spoke to the appraiser a little while back…he is certain that the size of the house is very close to what he measured it as and is not close to what it was listed in the records.
What should I do, I don’t want to and will not pay for the agreed upon purchase price because I am getting 200sqft less than what I thought I was paying for. But, the 17 day contingency period is over, but I haven’t signed for any of the contingency release documents. But, since its already appraised at the purchase price….I maybe forced to sign the appraisal contingency. How can I back out without loosing by 5K earnest money deposit.

[andymajumder]

Guys, I really need some help here. In my case based on some more comps which the seller’s agent had sent the appraiser has increased the value by 25K. Now from being 15K below the purchase agreement price, its 10K above. However, the house measures 200 sqft less than what it was listed for. I spoke to the appraiser a little while back…he is certain that the size of the house is very close to what he measured it as and is not close to what it was listed in the records.
What should I do, I don’t want to and will not pay for the agreed upon purchase price because I am getting 200sqft less than what I thought I was paying for. But, the 17 day contingency period is over, but I haven’t signed for any of the contingency release documents. But, since its already appraised at the purchase price….I maybe forced to sign the appraisal contingency. How can I back out without loosing by 5K earnest money deposit.

[andymajumder]

Guys, I really need some help here. In my case based on some more comps which the seller’s agent had sent the appraiser has increased the value by 25K. Now from being 15K below the purchase agreement price, its 10K above. However, the house measures 200 sqft less than what it was listed for. I spoke to the appraiser a little while back…he is certain that the size of the house is very close to what he measured it as and is not close to what it was listed in the records.
What should I do, I don’t want to and will not pay for the agreed upon purchase price because I am getting 200sqft less than what I thought I was paying for. But, the 17 day contingency period is over, but I haven’t signed for any of the contingency release documents. But, since its already appraised at the purchase price….I maybe forced to sign the appraisal contingency. How can I back out without loosing by 5K earnest money deposit.

[andymajumder]

Guys, I really need some help here. In my case based on some more comps which the seller’s agent had sent the appraiser has increased the value by 25K. Now from being 15K below the purchase agreement price, its 10K above. However, the house measures 200 sqft less than what it was listed for. I spoke to the appraiser a little while back…he is certain that the size of the house is very close to what he measured it as and is not close to what it was listed in the records.
What should I do, I don’t want to and will not pay for the agreed upon purchase price because I am getting 200sqft less than what I thought I was paying for. But, the 17 day contingency period is over, but I haven’t signed for any of the contingency release documents. But, since its already appraised at the purchase price….I maybe forced to sign the appraisal contingency. How can I back out without loosing by 5K earnest money deposit.

[Author]

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