Buyers Should Read the Appraisal Report
It has been my experience that Buyers only glance at the appraisal report to make sure that the value is sufficient. It is a good idea to really look at the appraisal report and read the comments made by the appraiser.
In California most contract offers are made on the Calif Residential Purchase Agreement and there is a section under 3.i that regards APPRAISAL CONTINGENCY AND REMOVAL. Normally the contract calls for the appraisal removal within 17 days but what is interesting is that in perhaps 99% of the cases the buyer does not look at the appraisal until later and is told by the lender that the appraisal "came in" (meaning came in to the value on the contract)
Pursuant to the Home Valuation Code of Conduct (HVCC) we are required to provide the Borrower with a copy of the Home Appraisal at least 3 Business days prior to the date on the closing of the loan documents if the appraisal is emailed toÂ the the borrower and eight (8) business days if it is sent by mail.
Suppose a 30 day escrow. The appraisal continguency must be removed by the 17th day but the appraisal does not have to be reviewed by the borrower until perhaps the 26th day.
Something to think about.
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