Home Buying in 80027>Question Details

Lkanim6, Home Buyer in 80027

what if i sign a waiver on appraisal contingency and later on decided to back out of the contract, what will happen?

Asked by Lkanim6, 80027 Wed Mar 10, 2010

Appraisal waiver requested by seller.......buyer wants to know what to do

Help the community by answering this question:

Answers

10
Have you talked to your real estate agent? Or is this a For Sale By Owner deal? I can't think of any good reason to waive any rights you might have during the contract period, including the right to an appraisal. As your question implies, there are circumstances in which you would want to get out of the deal. Finding out the house is not worth what you thought it was might be one of these times.

Best,
Ron Rovtar
Prudential Real Estate of the Rockies
Boulder, CO
303.473.1926
1 vote Thank Flag Link Sat Mar 27, 2010
First of all never sign something like this, second, ask your Realtor, third of all are you wanting out because the home did not Appraise?
Brian
1 vote Thank Flag Link Wed Mar 10, 2010
You need to hire a Realtor. There are several other legal and straight forward ways to "undo" the contract if that is what youneed or want to do. Note that typically, Realtor fees are paid by the seller, even for the benefit of a buyer.
0 votes Thank Flag Link Tue Jul 19, 2011
NEVER waive anything like that. It could cost you your earnest money deposit. Imagine having your financing all lined up. The day of closing your lender goes out of business. Where would you be? Can you imagine finding out the house only appraises for $50k LESS than you offered? Now what do you do. You are stuck. Forget it!!!
0 votes Thank Flag Link Thu Mar 11, 2010
I would NEVER recommend someone waive the right to an appraisal; even if you are planning to purchase a property with cash and are not required to get an appraisal. This is even more true with our current market conditions and the fluctuations in property values. Having an appraisal done is vital to making sure you are purchasing an investment that is worth what you are paying for it.

Unfortunately if you sign a waiver and don't have other avenues to get out of a contract (i.e., unsatisfactory conditions discovered in an inspection - if this is a condition in your contract), you will have to forfeit your earnest money if you later change your mind and decide to not purchase a property.
0 votes Thank Flag Link Thu Mar 11, 2010
If you chose to terminate and passed all your other dates for termination, you would loose your earnest money.
If you love the house, find some more negotiating points to discuss. These days appraisals are important.

Laurie Clark
laurie.clark@coloradohomes.com
Coldwell Banker
Web Reference: http://www.bouldercb.com
0 votes Thank Flag Link Wed Mar 10, 2010
If the Seller is requesting that you waive the Appraisal Contingency, that's a red flag to me. Either they know it won't appraise or they suspect it won't. Either way, I wouldn't waive that provision - it's there for your protection. I would chat with your agent and ask him/her to find you some comparables on this home so you can get an idea of what it should appraise for.

Good luck!
0 votes Thank Flag Link Wed Mar 10, 2010
Lk-
If you waive the appraisal contingency, then you will not be able to terminate the contract for appraisal conditions. If you are getting a loan on the property the bank will HAVE to appraise it for the contract price.
Check with your agent about the details on your contract.
Kimberly Ryan
303-523-8333
Keller Williams Realty Success
http://www.SwanRealtorGroup.com
0 votes Thank Flag Link Wed Mar 10, 2010
If you are getting a FHA loan for the property, the lender will usually only loan on appraised value... if the property doesn't appraise, you will not be able to get the loan. This might be different on Conventional and other loan options. Please call your lender and discuss as this is very important.

You could lose your earnest money if you back out of your contract outside of all contingencies / deadlines. Again, please consult with your mortgage broker before signing any appraisal waiver.
0 votes Thank Flag Link Wed Mar 10, 2010
If you waive your rights to an appraisal contingency then that door is closed. You're best bet would be to examine the contract to make sure you have other rights in place that you can exercise. If you need a loan to purchase then an appraisal and the value of that home is critical to a successful closing. Consult a real estate attorney or other professional to make sure you are protected during your purchase. Good luck.
0 votes Thank Flag Link Wed Mar 10, 2010
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer