Question: We
recently signed a contract to purchase an existing home for $236,000. We were
all set to sign but the appraisal came in at $226,000. We have already paid the
$300 appraisal fee, the $75 pest inspection fee and the $300 home inspection
fee. If we now back out of the contract because of the low appraisal what are
our liabilities? Will the seller have the right to sue/demand damages? If so,
what will be the amount?
Answer: You
need to see what the sale agreement says. It may say, for example, that the
deal is off and your deposit must be returned if the appraisal is less than the
selling price -- unless the sellers are willing to take a price cut. Why?
Because a lender will only provide financing on the basis of the sale price or
the appraised value, whichever is less. Speak with your broker for specifics.
No comments:
Post a Comment