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The house I'm buying appraised for a lot more than my accepted offer. As the closing date is within a couple of days, I started wondering if the seller might back out of the sale in order to try and get a higher offer that is closer to the appraised value. To be clear, this isn't something that is happening to me. Just curiosity mostly and wondering if anyone has had this experience.
Location: Danbury CT covering all of Fairfield County
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I never out the appraised value when representing a client, only if it is a problem. I just let the sellers agent know the appraiser report is in and the value is OK.
I never out the appraised value when representing a client, only if it is a problem. I just let the sellers agent know the appraiser report is in and the value is OK.
Thanks. This is pretty much what I found on my internet search. There were just very few differing opinions that made me wonder.
Last edited by mil88lim; 08-23-2018 at 09:35 AM..
Reason: grammar
Buyer pays for the appraisal as it's for the buyer's knowledge that the house is worth the price. Seller doesn't pay for it so they don't get to see it. The only time a seller sees an appraisal is when it is low and the buyer wants a price reduction.
Besides the fact that most sellers do not know the appraised value, there is also the fact that most contracts do not give the seller the right to just change their mind. If there isn't some valid reason the house can't close (no clear title, or the seller died and the house is going into probate, or foreclosure or something), then the seller has to go forward with the sale. If they don't, most contracts I've seen say that the buyer can sue for specific performance (basically, force the seller to sell). Buyers seem to have a lot more protections than sellers do when it comes to real estate transactions.
Besides the fact that most sellers do not know the appraised value, there is also the fact that most contracts do not give the seller the right to just change their mind. If there isn't some valid reason the house can't close (no clear title, or the seller died and the house is going into probate, or foreclosure or something), then the seller has to go forward with the sale. If they don't, most contracts I've seen say that the buyer can sue for specific performance (basically, force the seller to sell). Buyers seem to have a lot more protections than sellers do when it comes to real estate transactions.
People do it all the time . I got involved in a sale and three days before we were to move she backed out of the sale . She gave my earnest money back plus some for the trouble . I felt sorry for the other people whose house she was supposed to buy they got stuck with two mortgages for almost 6 months . My agent let me know they finally got a buyer , my agent is also a dear friend of my late father in law . I hope to never be in that position ever again .
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