sitedrifter
Member
What is the name of your state? New Jersey
I just purchased a home and my attorney added an appraisal contigency which basically states if the appraisal falls short of the selling price, the buyer (me) can cancel the deal. Well the sellers attorney rejected it completely. My attorney tells me it is not that much of an issue since I have a mortgage contigenency and if the aprpaisal falls short, my lender should deny my loan which in turn would let me out of the purchase. Problem is, my lender seems they want to give me the loan even if the appraisal falls short since they told me they will work with me to get the loan. I was not afraid of the home being appraised low but after this new screw in the works, I am getting nervous about it and am wondering if it might truly come in low. i have checked comps int he area and there really are none that I can find since most of the homes are 2 floor and this home is a ranch.
The seller has agreed to alot of things including removal of an underground oil tank but I still need an assurance I can back out of the appraisal is low.
I am meeting with my attorney Tuesday 6/1/04 and am going to tell him I want the clause left in but maybe add one of the following:
1.The Seller must agree to reduce the purchase price at appraised value or buyer can cancel the transaction.
or
2. Appraisal value falls short of selling price, buyer can cancel the contract with no penalties. Appraisal must be completed before seller removes heating oil tank.
With #2 I mention the oil tank becuase I think they are afraid if they remove it and I back out, they are stuck with a hefty chunk of money spent. this might calm their fears a bit if in fact they are nervous about spending money on the removal and I might cancel.
I am also going to send my realtor on a mission to the sellers realtor using the following logic:
The seller should understand that no other buyer will be able to get a loan on the house for more than its appraised value.
What do you (anyone) think?
Site
I just purchased a home and my attorney added an appraisal contigency which basically states if the appraisal falls short of the selling price, the buyer (me) can cancel the deal. Well the sellers attorney rejected it completely. My attorney tells me it is not that much of an issue since I have a mortgage contigenency and if the aprpaisal falls short, my lender should deny my loan which in turn would let me out of the purchase. Problem is, my lender seems they want to give me the loan even if the appraisal falls short since they told me they will work with me to get the loan. I was not afraid of the home being appraised low but after this new screw in the works, I am getting nervous about it and am wondering if it might truly come in low. i have checked comps int he area and there really are none that I can find since most of the homes are 2 floor and this home is a ranch.
The seller has agreed to alot of things including removal of an underground oil tank but I still need an assurance I can back out of the appraisal is low.
I am meeting with my attorney Tuesday 6/1/04 and am going to tell him I want the clause left in but maybe add one of the following:
1.The Seller must agree to reduce the purchase price at appraised value or buyer can cancel the transaction.
or
2. Appraisal value falls short of selling price, buyer can cancel the contract with no penalties. Appraisal must be completed before seller removes heating oil tank.
With #2 I mention the oil tank becuase I think they are afraid if they remove it and I back out, they are stuck with a hefty chunk of money spent. this might calm their fears a bit if in fact they are nervous about spending money on the removal and I might cancel.
I am also going to send my realtor on a mission to the sellers realtor using the following logic:
The seller should understand that no other buyer will be able to get a loan on the house for more than its appraised value.
What do you (anyone) think?
Site
My attorney sure made me feel like I was!
