Home Buying in Pensacola>Question Details

Sandralee Pr…, Home Buyer in Viva P  Lapham, Cocoa,...

The Owners want us to pay for the appraisal My husband & I Feel this is Wrong we have been renting this home for 3 yrs & HOUSE NOT WORTH AMOUNT

Asked by Sandralee Presley, Viva P Lapham, Cocoa, FL Fri Aug 16, 2013

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Are you joking and are trying to get a rise out of everyone?

If not, who in your realm of financial advisors in your life, planted the notion in your mind that the seller should somehow be responsible for paying for the appraisal...of all things?

You better hope you can pay for an appraisal separate from the seller's influence as it could cost you thousands of dollars if not!
1 vote Thank Flag Link Fri Aug 16, 2013
If you are purchasing the home, you would be the one responsible for paying for the appraisal? Not sure why you feel that is wrong? That is normally how it works.
0 votes Thank Flag Link Fri Aug 16, 2013
In order to buy any property, you need an estimate of the property's current value. It is performed by an Appraiser, who is a real estate professional licensed or certified by the state. Generally speaking, the buyer pays the appraisal's fee. Review the agreement that you signed 3 years ago and find out who is responsible for the appraiser fee.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes Thank Flag Link Fri Aug 16, 2013
In order to buy any property, you need an estimate of the property's current value. It is performed by an Appraiser, who is a real estate professional licensed or certified by the state. Generally speaking, the buyer pays the appraisal's fee. Review the agreement that you signed 3 years ago and find out who is responsible for the appraiser fee.

Best of Luck,

Maria Cipollone

http://www.Flahomespecialist.com
0 votes Thank Flag Link Fri Aug 16, 2013
You don't say whether you've simply been renting or whether you're doing a lease-option.

If it's a lease-option, check the option document and see what it says about determining value. Often, the price is set up front. Then, when you apply for a loan, you pay (just as you would with any mortgage application) for the appraisal. If the price isn't set up front--if it says something like the sales price will be determined by an appraisal--the option should specify who pays for the appraisal.

If it doesn't, then you can either pay for one and decide whether to exercise your option, or simply walk away.

Or: Negotiate an extension to the option.

If it's a rental--no option attached--you need some way of determining the house's value. Again, though, the appraisal would usually be done after you've applied for a mortgage.

What you really need at this point is a CMA performed by a Realtor--a determination of the value based on recent comps. (Excluding the possibility that your option calls specifically for an appraisal, in which case that's what you'd need.)

You say the house isn't worth the amount the owners want. Well, then, don't buy it.

Or: Negotiate a lower price. Say they want $300,000. It's only worth $275,000. You say: "I'd like to buy the house, but I am not going to overpay. I'm willing to pay you $275,000, and that's it." Or: "I'd like to buy the house, but I am not going to overpay. I'm willing to pay you $250,000." Then you can negotiate up to around $275,000.

Seems to me you're in the driver's seat. You can buy the house, but not if it's overpriced. If you have solid evidence (a recent CMA) that the house isn't worth what the owners are asking, then present that evidence to them. Follow my suggestions above. There's no point in overpaying for a property. And there's almost no justification (except as noted above) for paying for an appraisal prior to the mortgage process.

Hope that helps.
0 votes Thank Flag Link Fri Aug 16, 2013
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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Appraisal is traditionally a buyer expense necessary to secure the loan. It is not unfair or out of the norm that the buyer pays this closing cost.
0 votes Thank Flag Link Fri Aug 16, 2013
Hi Sandralee. Getting an appraisal on a house would give both sellers/buyers an idea of what the house is worth in today's market and that number is usually negotiable. As far as who pays for the appraisal, that too is negotiable. Maybe you can split the cost? Good luck to you!
0 votes Thank Flag Link Fri Aug 16, 2013
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