Home Buying in Illinois City>Question Details

Hk616, Real Estate Pro in Naperville, IL

If appraisal contingency clause is added to the contract when I make an offer, what will seller feel? Will this make me in a bad position to bid?

Asked by Hk616, Naperville, IL Sat Apr 10, 2010

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If your financing clause is a FHA loan then it's automatic that there is an appraisal clause. This is found in the FHA rider. Remember, you're protecting yourself if the home doesn't appraise out. And also remember, the sellers set their asking price and if they feel confident with their price then they should have no problem with you asking for that contingency.

Good Luck.
0 votes Thank Flag Link Mon Apr 12, 2010
Sellers prefer no contingencies, buyers prefer contingencies. The best chance of having an offer accepted is top price, fewest contingencies.

However. There are contingencies that Sellers generally accept as being quite reasonable: inspection, financing, appraisal contingency, that sort of thing.

But, look - if it's a screaming deal, maybe you might not want to load up your offer with too much baggage.
0 votes Thank Flag Link Sun Apr 11, 2010
If you do not include that and financing ability you could be forced to overpay for a house you could not finance. That means your earnest money could be lost.

Even if a seller does not like it, I would not go without that protection in my offer.
0 votes Thank Flag Link Sun Apr 11, 2010
Hk616, I don't work in your state, but in Washington every contract I write has a clause addressing the issue of appraisal less then selling price. I'd be surprised if that wasn't customary elsewhere. If you are in a competitive bidding situation, and feel you can afford to buy the home by making up the difference if it doesn't appraise, than leaving it out could give an advantage over others, but it puts in you a dangerous position.
Ask your broker what they would recommend.
0 votes Thank Flag Link Sat Apr 10, 2010
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