Steve of phpBB wrote: ↑
Fri Nov 13, 2020 12:54 pm
Johnnie wrote: ↑
Fri Nov 13, 2020 12:11 pm
So does that mean someone can come in over the top when the house is listed and
go under contract for that number only to have an appraiser undercut it and thereby fuck over the seller? Seems like the logic if you play it out.
This depends entirely on what kind of contract you negotiate. If you go accept an offer that is contingent on financing, and you know financing is contingent on the appraisal, then you're agreeing to make your contract contingent on the appraisal.
So if you have a choice between a contingent offer and a non-contingent cash offer - if you can get one of those - you'll be less likely to be at the risk of an appraisal.
Even that can't give you complete protection, though. The standard REPC usually makes the purchase contingent on inspection. So if the buyer gets his own appraisal and doesn't like what he sees, he can use the inspection contingency to back out.
A real estate deal is never done until the cash hits your account.
See, that makes more sense and goes into more detail than what my realtor (or any realtor, honestly) can explain up front.
My story, if you missed it: I put my house on the market at 240k. Within 12 hours of listing I had a full cash offer up to 250k. (The lady really, really wanted my house.) We went under contract at 240k by the end of that day (no one else offered more). She accepted my pre market inspection. And she only had a contractor look at the fixed stuff (which was fine) and we did the inspections for termites (cleared), vents (needed work, offered a credit which was accepted), and sewage (fine).
That's when my realtor was like "Last hurdle is appraisal and we're golden." To which I'm like "Wait... She's paying full cash. Why even bother?" She says, "It's part of the process." "And if after everything this appraisal comes in below asking, then what? I potentially get screwed out of money?" She's like,"I don't see that happening, but it's possible."
So luckily my appraisal was exactly at asking and I dodged a money loss, but looking at your last sentence, I wasn't enthusiastic when I went under contract initially because there's always something
. And I trust nothing. That's what happens after many, many years in the military and sometimes people just don't get it.
But once I had the money in my account...weeeeeee!