If you’ve decided on a property and about to seal the deal before closing, become familiar with the term ‘appraisal contingency.’
What is an appraisal contingency?
As the buyer, you’re required to obtain a written appraisal of the property by a licensed appraiser in Florida. It’s part of the contract and ensures the value meets a specific minimum. In a real estate transaction, the appraisal is typically ordered by the buyer’s mortgage lender and considered a closing cost.
What is a real estate contingency clause?
It details specific conditions that must be met by a deadline to advance the deal. If those conditions are not met, the buyer can back out of the contract.
Who pays for an appraisal and how much does it cost?
The buyer pays for the appraisal, and it’s typically $500 for a single-family home, according to the National Association of Realtors. “A professional appraiser will use the home inspection and current housing market to provide an appraised value, which is very important to the home loan process,” according to the NAR.
How can you guarantee an appraiser is legitimate?
Appraisers are regulated by federal law under the Dodd-Frank Wall Street Reform and Consumer Protection Act. Neither the buyer or seller can choose one. Neither can the lender to avoid any conflicts of interest. You can rely on your Lang Realty professional who works with licensed appraisers who are part of the real estate industry.
What does no appraisal contingency mean?
It’s risky. The term is “waiving the appraisal contingency.” It means the buyer agrees to proceed with the purchase without a written appraisal determining the property value.
What are examples of contingencies in real estate?
The most common ones are mortgage, title, home inspection, sale of a prior home, homeowners insurance and appraisal. Common contingencies in real estate
