In this week's video, Dawn shares a different interpretation of the impact of Paragraph 2 of the addendum on Buyer's right to terminate.
THIS IS EXTREMELY HELPFUL. NEEDED TO WATCH MORE THAN ONCE TO GET IT CLEAR. WILL CALL WHEN IT COMES TO AN APPLICABLE TRANSACTION. HOPE THERE IS SOMEONE VERSED IN THIS WHEN NEEDED. DAWN YOU CAN ONLY HANDLE SO MUCH!!
How do you protect a buyer when they are putting down 20% and you know the home will not appraise for offer buyer is making. They want the home but want it at appraisal value. Advise
The only protection is the ability to terminate if the house doesn't appraise. There's no guarantee the seller will agree to lower the price.
Hi Jo Ann, IF the buyer is putting 20% down, and the lender requires an 80% loan-to-value ratio, then there is nothing further needed to protect buyer than the Property Approval contingency built into B(2) of the Third Party Financing Addendum, as that provides that buyer can terminate all the way up to closing if the property does not satisfy lender's underwriting requirements, including appraisal. Buyer can also choose to bring more cash, or Seller can agree to reduce the price, but neither is required. Feel free to give me a call if you want to discuss further- 817-510-6490.