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Appraisal Contingency

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Joined
Jan 16, 2002
Oddly enough nearly all people I talk to about this never gave it a thought. When asked if their attorney included such a contiengency there is almost always a long pause
followed by "no". I almost never see it in contracts. Of course the article assumes everybody involved in re is honest, knowledgeable, and has a brain (which we all know should not be assumed).
 

Jo Ann Meyer Stratton

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Arizona
It is in almost every contract that I see in my area, southeastern Arizona.
 

Tom Barclay

Senior Member
Joined
Apr 7, 2002
Professional Status
Retired Appraiser
State
Oregon
Very common in Oregon. I have included it in 100% of the earnest money agreements I have written as a broker in the past 15 years.
 

Cliff Salisbury

Senior Member
Joined
Jan 16, 2002
Professional Status
Retired Appraiser
State
Ohio
I can not remember the last time I saw this in a contract. I think that a lot of buyers think that if it does not appraise the deal is void. I just did a sale that the buyer was represented by a buyer broker and it did not have it in their contract.
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Very often, however, this contingency is written to make the buyer feel rosey in my opinion. The reason I say this is because, should I happen to appraise a house for less than the purchase price--rather than renegotiate, the first thing one of the agent's will do is call my client and start the BASHING!!!

I'm sorry (not really) to keep harping on this issue, but everytime (I can remember) when I've appraised a home for less than the purchase price the agent comes unglued, and starts with the character assassination. I've even had lenders in the past not pay me for my appraisal when it came in lower than the sales price, and cease to order from that time on (agent called and yelled I was told). They just go find an appraiser who'll give them their number--doesn't matter if there's a contingency in the purchase and sale agreement!

-Mike

I made Evangelist, I MADE EVANGELIST!!! I didn't even notice...the odometer clicked past 500 and there it is all stars (I can quite writing now!).
 

Tater Salad

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Missouri
There in almost every one I see. It doesn't stop the agent from arguing, but it's in there. I wonder if a case could be made for malpractice (against the agent) if the appraisal came in low and there was no appraisal rider? Not that I would advocate that :twisted:
 

larryhaskell

Senior Member
Joined
Apr 23, 2002
Professional Status
Certified General Appraiser
State
Nevada
Pamela:

Happens on very rare occasions unfortunately.

Mike:

We'll miss you. Good luck.
 

Don Clark

Elite Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Virginia
B) Very rarely.

What I am seeing is contracts for big chunks of money as a down payment, and NO contingcies. My God, anyone smart enough to have $100,000.00 to put down on a $300,000.00 house would lead you to believe they would protect themselves. Tain't so. I am doing one now. My opinion is $270,000.00 and contract price is $311,000.00 and no contingcies. Geshhhhhhhh!

Don clark

BTW, my area is Virginia Beach, Virginia. In northern Virginia the contingcies involve putting a first right of refusal in the contract that states that should a seller receive an offer higher than the signed and accepted contract, the buyer has 24 hours to meet the new price or their contract is void.
 
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