I think you really need legal advice. Although there are some really bright agents/brokers on this forum, this is really not the best place to obtain legal advice. Many attorneys will not give you legal advice unless they are retained by you. Many attorneys will not even speak with you since you are already represented. I suggest you ask your attorney for a clear and thorough explanation of his/her position. If you still disagree with him/her, then you may need to seek other legal counsel.
All the best!
The part about not including Contingencies; that is desirable to present a STRONG offer. Preferably we would make a CASH offer, with no contingencies, an As-Is purchase, with a 15 day Escrow. The Lawyers and Realtors involved would like to work these kind of deals.
But this is not a perfect world, and my primary concern would be protecting my client with Inspections and Contingencies: I don't feel that your Attorney is protecting you if he suggests doing without them.
The question about the Appraisal/$100/Loan should be shared with your Lender; you need their committment. This sounds like a very desirable Loan for them, so you shouldn't get any resistance.
Good luck and may God bless
Second, YES my typing was off and fast I have been suffering with being sick all week and pardon me for not being better about reviewing my typing. I have a BA from Fordham University and I consider myself a smart person. Being prepared and planning ahead is the SMART thing to do. Buying a house is a huge investment, I question anyone who would not be prepared and ask the right questions. Asking after the fact is stupidity.
EVERYONE---- I am not in contract, nor am I putting 100K down at contract, that one 100K comes in at closing for my down payment. I am putting in 12K in escarow AFTER we sign the contract. My lawyer gave me a hard time about putting in the Subject to appraisal clause and that is not sitting well with me. So I came here for advise BEFORE I sign. There has been no appraisal yet, no mortgage so although I appreciate some of the suggestions, this all has to do with what is customary on LONG ISLAND to put in a real estate contract. My lawyer thinks I may lose the house if we put that clause in, that banks don't give a mortage if the appraisal comes in lower. I've done my research and the fact is the bank CAN give you the mortgage, so long as the amount of their loan is covered, its up to the bank. Which it would be, because of the large down payment. Has anyone on LONG ISLAND seen this clause before and not for an FHA loan. (I would be doing conventional). I don't feel like subject to obtaining financing is protecting me enough. The appraisal needs to be put in there giving me the opportunity to re-negociate if it comes in low.
Thank you to the majority of you, who have been straight forward and read my post and follow up posts. Tom, I would never work with you based on how you answered. You have no tact.
Thanks for your questions and response below.
Prudent for you to write up a contract with an Appraisal contingency, otherwise walk from the property
And the attorney, if he cannot protect your interests.
Usually, an appraisal goes hand-in-hand with a mortgage contingency as it is your lender who orders the appraisal. If the property does not appraise at the sales price or above then you cannot get a mortgage approval.
My suggestion is to renegotiate the sales price with the seller if you truly want the home.
Good luck to you!
Prudential Connecticut Realty
If any of the three fail to come in as expected, then our Buyer has the ability to back out of the deal.
Good luck and may God bless
Accredited Buyer Representative
Licensed Associate Broker
William Raveis Legends Realty Group
NYS Associate Broker
Keller Williams Landmark II
Serving Queens, Nassau and Brooklyn
Couple of things - you're not putting that down on contract and if you are - that's WAY TOO MUCH MONEY to put down on the signing of a contract.
I can tell by your typing also - that you started off with a "If"...blah blah blah...and the appraisal only comes in at 350k"
So you're not in contract.
Okay - so you're basically thinking ahead and worrying about every detail.
Are you working with AN AGENT? If not - that's your first BIG mistake.
All the free (and good) advice you'll get on trulia will NOT help you mentally overcome your fears. You need a Realtor to help you - period, end of discussion.
I am assuming you are already in contract if the appraisal is being done, but you do not yet have your commitment.
This is mainly a question for a mortgage broker. Call Dominick Sutera (516) 655-2900 (he is one of my favorite mortgage brokers) and ask him the question.
You may also see if you can lessen the amount of cash downpayment therefore requiring the bank to deny the mortgage.
On the other side of the coin, if you love the house, you may still have the option to purchase. Ask your Realtor to run recently sold comps in the area; not every appraiser is local with access to everything needed.
If you run into a problem there, contact me and I will run some for you.