Home Buying in 48430>Question Details

Milkmoney11, Home Buyer in Flint, MI

Am I obligated as the buyer to disclose the appraisal price of the home to the seller?

Asked by Milkmoney11, Flint, MI Wed May 20, 2009

I close on a house next week. The seller is requesting that I disclose the value of my appraisal to them. I told my agent to tell them that the home "appraised at value" and did not want to disclose the exact appraisal value. I feel that I paid the $400 for the appraisal and if they want an appraised value, they should pay for their own. Am I obligated to tell them? Why would they even care what the house appraised at as long as it hit the value?

Any help is appreciated.

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13
Suzan Hollis’ answer
As a seller who is going through this right now I feel it is an unscrupulous practice to not disclose the appraisal value. After all, as a seller we are asked to disclose everything that we know about the home before placing it on the market. This is most definitely the single most lucrative financial transaction most of us will make during our lifetimes and I feel it is unfair to the seller to not know all the details including the appraised value of the home.

Of course, knowing that my house appraised well above the selling price would do little more than cause me to rethink selecting an agent in the future and most certainly having an appraisal of mine own done prior to listing.
0 votes Thank Flag Link Wed Apr 10, 2013
If you want to know, you "as the seller" should have got your own before even listing it. I as well am going through this, but I am a buyer. The house I am in contract with came in far less than the appraised value, and now my lender is not wanting to lend on that. I have waisted money (inspection, turning on utilities, setting up home owners insurance, second inspection, earnest money etc. This could all have been avoided if sellers would just list prices realisticly and have that once piece of paper to back up their list price.
Flag Fri Feb 21, 2014
This is an old post but I am going to comment. A seller should offer to pay for the appraisal for the buyer, if they want the information. Unscrupulous? If you want something, you need to be willing to pay for it. You get the idea.
Flag Thu Oct 31, 2013
Great advice from the other Agents. You are not required to disclose the price but there really is not a benefit to keep it to yourself.
1 vote Thank Flag Link Sat Oct 20, 2012
No you don't have an obligation to tell them. Your right, you paid for it. On the other hand if it did not appraise you would certainly want them to know that it did not and maybe do some re negotiating on price.
1 vote Thank Flag Link Tue Mar 20, 2012
Hi - you are absolutely correct. Since you paid for it, you own it. If they want to pay you for a share of the appraisal or go get their own then they can have the appraisal. Chances are though that if they go out and get their own, it will have a different value.
0 votes Thank Flag Link Thu Apr 11, 2013
No obligation, but you may want to if it helps the negotiation process along.
0 votes Thank Flag Link Wed Jan 23, 2013
Interesting question! You seem to have a good feel for things. You have paid for the appraisal and therefore it is yours. The seller may have obtained knowledge of the value and it may strengthen their asking price if they can obtain a recent appraisal. Keep in mind that most appraisals have a shelf life and after 6 months it will more than likely be worthless to either parties. Good Luck!
0 votes Thank Flag Link Wed Mar 14, 2012
good morning...no, you're not obligated to tell them the value.......bob mcclure- success mortgage partners- plymouth, michigan.......
0 votes Thank Flag Link Thu May 21, 2009
Hello Milkmoney and thanks for your question!

With the recent changes in the mortgage industry in which, at least here in California, the bank selects an apparaiser from a "pool" of available qualified appraisers, we are only told that the sales price was supported by the appraisal, and often do not see the actual appraisal report until the transaction is just about to close--too late for either party to pull out. Many times (okay, most of the time) sellers or their representatives will ask to see the appraisal report, but, much like you have already been advised, I usually only disclose that the appraiser was able to verify the price of the home at its sale value.

The only time that I felt compelled to provide the seller with a copy of the appraisal was when the home did NOT appraise for the sale price. In this case, because we were trying to negotiate a lower sales price, the seller needed to know why the appraisal came in lower and also needed proof as to why a lower sales price was warranted. Otherwise, I would not have supplied the report to the seller.

Thanks again for your question!

Sincerely,
Grace Morioka, SRES, e-Pro
Area Pro Realty
0 votes Thank Flag Link Wed May 20, 2009
I meant sellers remorse in my last post.
0 votes Thank Flag Link Wed May 20, 2009
no you are not obligated at all


va loan
0 votes Thank Flag Link Wed May 20, 2009
Yes I was asked to disclose the information. I was advised by my agent NOT to disclose it because all seller's normally want is to know IF it appraised at value. If it did...great! That's all they should be concerned with. I think he is just concerned they are getting buyers remorse and will feel they didn't get all that they should have. The appraisal did not come in much higher, and I don't want to hurt negotiations, but I am going on my agents advice. Is it reasonable?
0 votes Thank Flag Link Wed May 20, 2009
No, you are not obligated to do so. Were you asked to provide that information?
Web Reference: http://DoorToDreams.com
0 votes Thank Flag Link Wed May 20, 2009
I don't think you're obligated to share your appraisal with the seller. However, I'm not sure why you wouldn't want to share it with them after the transaction closed if you're concerned it might affect your negotiations.
0 votes Thank Flag Link Wed May 20, 2009
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