I am representing a buyer who is working with cash but has certain guidelines. She is putting in an offer with cash and is giving the seller the asking price but is contingent on the appraisal coming back for that price. Addendum Concerning Right to Terminate Due to Lenders Appraisal states to use this form only if using third party financing addendum, so can I put it in special provisions?
To answer the question of can you put this in special provisions, may be an opportunity for you to certainly discuss this with your broker and or legal. As far as the purchaser having certain conditions that must be met and prior to the purchase, indeed I agree with a few of the other responses in that a longer option period may be the best option for these conditions to be clear before having this purchaser bound to a contract awaiting an appraisal. If the purchasers conditions are based on ite...
To answer the question of can you put this in special provisions, may be an opportunity for you to certainly discuss this with your broker and or legal. As far as the purchaser having certain conditions that must be met and prior to the purchase, indeed I agree with a few of the other responses in that a longer option period may be the best option for these conditions to be clear before having this purchaser bound to a contract awaiting an appraisal. If the purchasers conditions are based on items such as a roof or other factors that may somewhat affect the outcome of an appraisal, then these items should be taken into account with the option period and inspections and comparables and the bottom line price of what that purchaser is willing to pay if these conditions are not met.
The saying cash is king is because A) you don't have to worry about the loan approval contingency, B) they typically can close faster, and C) you don't have to worry about the appraisal contingency. There is not a specific form for an appraisal contingency on cash deals, as appraisals are required by lenders to protect their investment and not lending more than the home is actually worth. I would ask for further clarification from your client as to why an appraisal is required. They may not rea...
The saying cash is king is because A) you don't have to worry about the loan approval contingency, B) they typically can close faster, and C) you don't have to worry about the appraisal contingency. There is not a specific form for an appraisal contingency on cash deals, as appraisals are required by lenders to protect their investment and not lending more than the home is actually worth. I would ask for further clarification from your client as to why an appraisal is required. They may not realize as a cash deal, appraisals are not required. Ask more questions: maybe they want an appraisal for peace of mind they are buying a worthy investment, in which case I may offer to run comps for them. Or maybe they are using something that requires an appraisal & if that is the case I would want further clarification of any other stipulations. But like everyone else said, and depending on the clients answer, I would speak to my broker and likely put something in Special Provisions.