Home Buying in Hawthorne>Question Details

Marlon Young, Home Buyer in Los Angeles, CA

I am in my 3rd escrow extension and the seller has gotten his own appraisal after not being satisfied with my lender's appraisal. He is

Asked by Marlon Young, Los Angeles, CA Sat Apr 10, 2010

contesting. Do I have to honor his appraisal after my lender has received an appraisal? What if my lender agrees with his appraisal and his newly found comps? Can I contest his appraisal and come up with comps of my own?

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I would have the same quesitons as below. "how did it get this far?"

Either way, I would let your lender look at the appraisal so they can tell you all the reasons that value is not supported. His comps are probably all adjusted to the wazoo.

By chance they are not the lender can not use that specific appraisal but they can send the comps to the original appraiser for additional consideration.
0 votes Thank Flag Link Mon Apr 12, 2010
Lew's correct. Your seller's appraisal will not be accepted so it doesn't matter if he contests it or not. This is the new laws/guidelines as per 2010.

Honestly, how did it get this far? Once the initial appraisal was completed by the lender, you still had an option to cancel escrow. If your loan/appraisal contingency does not extend this far, then you may be stuck with the agreed upon price. If you can't perform, then seller may cancel and pocket your deposit. This depends on how the contract was initially written, tho.

Good luck and next time get a better agent that can advise you on these matters. Agents that just tell you to "buy buy buy" or "sell sell sell" without explaining the consequences appropriately should not be your agent!


Cheers,


Lou
0 votes Thank Flag Link Mon Apr 12, 2010
This issue should be addressed in your contract. Chances are your lender is NOT going to agree with the seller's appraisal and nor do you. I would wait to see what the sellers appraiser comes up with. There is always the possibility that your lenders appraiser missed something or another house closed recently for more money. If the sellers appraiser comes back higher than your then your lender will probabley have a discussion with their appraiser to see if there was oversight. Your lender nor you have to agree to teh additional appraisel however.

Good Luck.

Jason Stevens, GRI,ABR
Kevin Flynn Realty, Inc.
email: jasonstevens@embarqmail.com
0 votes Thank Flag Link Sat Apr 10, 2010
The appraisal obtained by the seller will not be accepted by any lender under any circumstances. Lenders can not have any communication with an appraiser or otherwise try to or appear to try to influence any appraisal report, and must work through 3rd parties such as an Appraisal Management Co. Even then, the appraisal report is still subject to underwriting review.
0 votes Thank Flag Link Sat Apr 10, 2010
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