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Old 04-20-2010, 09:32 AM
 
Location: Central FL
1,382 posts, read 3,331,236 times
Reputation: 1183

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The contract for the sale of our home had a 21 day appraisal deadline. The buyers' bank sent the appraiser out on day 21, so the buyer requested an extension to 25 days. Well, today is day 25 and the buyer has not received the appraisal.

As a seller, I'm tired of being in limbo worrying that the deal could fall through. We made it through inspection, and loan qualification, and now the appraisal is the final step.

What if the appraisal doesn't come in today? As I understand it, the buyers would then lose the right to request that we lower the price if the appraised value came in lower than the sales price.

Is it common for the appraisal to take too long? I really don't feel inclined to extend the deadline again if they should ask. The buyers' agent should be in contact with the bank/ appraiser to get things straightened up.

One other thing: I requested the property disclosure on a short sale that we are interested in buying in FL, but it has been almost a week and the report has not been provided. As I understand it, the seller is required to disclose any known facts about the property unless it's a bank REO (which it is not). I'm just getting frustrated with this whole process.
The property has been on the market for a year as a short sale and the price has been reduced about 10 times. The listing agent says the bank is eager to sell and they promise to repond to offers in 2 weeks and close within 4 weeks after that. It seems the seller is not so eager. He owes $300k on the loan and the asking price is down to $129k. (and due to be reduced again soon)
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Old 04-20-2010, 12:05 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,107,578 times
Reputation: 2197
Do you have a listing agent? Your agent should be counseling you on your options regarding the appraisal. It depends on what your contract says is required and your possible options.

It's not unusual for it to take a week or more to get the appraiser's report after visiting the home.
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Old 04-20-2010, 12:50 PM
 
Location: Central Maryland - Mt Airy
160 posts, read 722,997 times
Reputation: 61
Sounds like you have a buyer on the hook and the bank and/or appraisal company is the hold up. Very common these days. If this is the only issue with the contract (i.e. buyer is otherwise ready, willing and able to close the deal), unless you have a super duper spectacular house in a great area that's in high demand you might want to hold on to this buyer. If you let them go now it could be months before you get another bite. And….just a tiny bit of unrequested advice, if you don’t like being in limbo worrying about whether or not real estate deals will fall through or not, ya might want to stay away from short sales
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Old 04-20-2010, 01:23 PM
 
Location: Central FL
1,382 posts, read 3,331,236 times
Reputation: 1183
The contract states that the buyer has 25 days from binding date of agreement to request that we lower the price to the appraisal amount (if it comes in low) That means they lose that right after today, and if the appraisal comes in for lower than the purchase price, they are obligated to purchase at the agreed price and all contingencies are removed.

The problem is on their end. I know the buyers are angry that they paid for this appraisal weeks ago and it took forever to get it scheduled. I was available anytime for the appraisal and even tried to get the man to come out here sooner than the date he suggested.

I guess if I were the buyer, I would be on the phone with somebody today so I didn't lose my right to request a price reduction if the appraisal comes in low!

I also expect another request for extension today from the seller's agent unless he is just totally dropping the ball. I guess we will agree to that because we really need this deal to close on time. We either move now or wait another year due to crazy work issues. Then again, we've already gone above and beyond to help the buyers out, and I feel that deadlines were placed in the contract for a reason. How many more extensions do we have to grant? I need to start packing and doing a lot of things but I'm holding off until the final contingency is removed and this is getting frustrating. Also, we agreed to quite a few expensive repairs and we are holding off on getting the rest of those done until we are sure the house will appraise for the sale price.

Last edited by MovedfromFL; 04-20-2010 at 01:37 PM..
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Old 04-20-2010, 01:37 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,107,578 times
Reputation: 2197
Quote:
Originally Posted by MovedfromFL View Post
The contract states that the buyer has 25 days from binding date of agreement to request that we lower the price to the appraisal amount (if it comes in low) That means they lose that right after today, and if the appraisal comes in for lower than the purchase price, they are obligated to purchase at the agreed price and all contingencies are removed. ...
Interesting, our contract does not have a deadline, just that the buyer has 5 days from receipt of appraisal to cancel if appraised price is lower than sale price.

Obviously, it's to your advantage to enforce the contingency expiration and not grant an extension. The question is, how will the buyer react? Can they cancel over another issue? Will they cancel anyway rather than pay extra if the appraisal is lower? Are you willing to drop your price?

Again, if you have a listing agent, you should be asking their advice. Sounds like you don't?
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Old 04-20-2010, 02:02 PM
 
Location: Illinois
718 posts, read 1,834,141 times
Reputation: 974
The listing agent has absolutely no control over when, and at what time an appraiser calls to have access to the house. The appraiser is working on behalf of the buyer's lender. This entire year, if I were to have a problem with a transaction, it is with this stupid new "hands off" appraiser rule. When you finally meet with an appraiser...it isn't their fault. They don't get called until the last possible minute...when the committment date is some 3-4 days away and then it is an appraisal way out of their area. Am waiting for one to call me as we speak. Deal was consummated weeks ago....committment date is 4/29/10....VA....think it will come in on time. Heck no. As the listing agent I have contacted every one I can and still my seller waits and waits. These new guidelines and rules and regs only protect the lender but no one thinks about the human lives involved in these transactions...people who literally don't know whether they are coming or going.
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Old 04-20-2010, 04:04 PM
 
Location: Central FL
1,382 posts, read 3,331,236 times
Reputation: 1183
My listing agent did mention something about the new rules. She said the lender doesn't even know what appraiser they will be assigned.

Well, I have good news! The appraisal is in just now and it came in for $6550 more than the sale price! I told my agent that the buyers should feel like they are getting a deal, and she said well, in fact, they are disappointed because they thought the appraisal should have come in higher!

Whatever, all I know is that was the final contingency and now we can move toward closing!
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Old 04-20-2010, 04:32 PM
 
Location: Tempe, Arizona
4,511 posts, read 12,107,578 times
Reputation: 2197
Good news. Glad it worked out.
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