Legal Matters: Ill-timed appraisals leave seller curious
It is in a seller's best interest to co-operate with a homebuyer's appraisers, writes Jeffrey Cowan.
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Q: We had sold our home that was conditional on financing but the buyer waived this condition so we now have a firm deal. Since then, we have had repeated requests for access to the property so that bank appraisers can determine the value of it. There was no clause in the agreement that we provide this access and the appraisers are choosing times that are difficult for us to be at home to let them in. Do we have to provide access?
A: The buyer may have satisfied the financing condition with a preapproval but the financial institution that is loaning them the money still needs to know the value of the home that is being pledged as collateral. The problem in today’s market is that there is a slight reduction in the appraised value of homes and the mortgage rules for funding have become more restrictive. These two factors combined has made getting a mortgage for a home purchase challenging.
It is obviously in your best interest to co-operate with the buyer’s appraisers. They may be shopping around for the best deal or at least one that will give them the funds to purchase your home.
So, although it is a pain and there is no provision for these visits, you should be as engaged as possible to ensure the buyer can close on time with adequate funds.