Appraisal Addendum: I am suggesting the possibility of including a separate “Appraisal Addendum” for all conventional contracts. The Addendum should provide if the property does not appraise for the purchase price, that the Purchaser and Seller need to negotiate a new price based on the appraisal. There should be a time limit on the negotiation period, and any new negotiated price cannot be less than the appraisal. If the parties cannot agree on a new price, then either Purchaser or Seller reserves the right to terminate the contract. Please contact me at if you have any questions.
William D. Tucker, III
Tucker Griffin Barnes P.C.
434-973-7474
Tucker@TGBlaw.com
http://www.tgblaw.com/
Showing posts with label Appraisals. Show all posts
Showing posts with label Appraisals. Show all posts
Apr 16, 2009
Mar 3, 2009
Tip 5-2009: Appraisals
APPRAISALS: We are experiencing a sharp increase in the number of real estate contracts which are being terminated due to appraisal problems. Several lenders are now requiring urban comps within one mile, sales within 90 days, and sometimes other strict criteria. In a falling market, this can result in much lower appraisals. To make matters worse, on May 1, 2009 new rules are going to be enacted regarding the assignment of appraisers. Be prepared to defend the contract price, with pending sales unknown to the appraiser or in some cases, even changing lenders.
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