Hi Francesca, Good answers below. Sellers do want to know value as soon as possible and it is common to have the appraisal deadline date a few days after your inspection resolution deadline date. If you are doing an FHA loan, you are covered whether the date has been met or not, as the language in the appraisal paragraph is very broad in the Colorado Real Estate Contract to Buy and Sell:
Paragraph 6.2.2 6.2.2. FHA. It is expressly agreed that, notwithstanding any other provisions of this Contract, the Purchaser (Buyer) shall not be obligated to complete the purchase of the Property described herein or to incur any penalty by forfeiture of Earnest Money deposits or otherwise unless the Purchaser (Buyer) has been given in accordance with HUD/FHA or VA requirements a written statement issued by the Federal Housing Commissioner, Department of Veterans Affairs, or a Direct Endorsement lender, setting forth the appraised value of the Property of not less than $______________. The 218 Purchaser (Buyer) shall have the privilege and option of proceeding with the consummation of this Contract without regard to the amount of the appraised valuation. The appraised valuation is arrived at to determine the maximum mortgage the Department of Housing and Urban Development will insure. HUD does not warrant the value nor the condition of the Property. The Purchaser (Buyer) should satisfy himself/herself that the price and condition of the Property are acceptable.
Basically, you do not have to pay any more than the appraised value or you get your earnest money back regardless of appraisal dates in the contract.
Hopefully you have looked at recent sold comparable properties and are comfortable with value as you don't want to go spending $300-400 on an inspection if the value is not there. I have actually asked the seller to pay for an appraisal before the inspection deadline and that the seller would receive a credit back from the lender at closing if the property came in at value. This has happened twice this year with clients.
Hope these things help!
Paul Mooney 303-810-7280 direct http://www.paulsdenverhomes.com