Bravo. Thanks for stating it again. I do contract review for 285 agents and have seen every permutation of appraisal language imaginable. Some even in contradiction to FHA/VA guidelines. Keep up the good work.
Thank you Lou! You keep up the good work as well. And thank you for watching Dawn's Tip of the Week!
Received this from one of my agents. I told him absolutely never let your buyers sign this.
"Notwithstanding any other provisions of the Contract or the provisions of any addendum to Contract, Buyer acknowledges and understands that the Sales Price for the Property may be higher than the current market value of the Property as determined by an independent, licensed appraiser chosen by the Buyer or Buyer's lender(s). If the Property does not appraise for an amount equal to or greater than $325,000 (Sales Price) by an independent, licensed appraiser chosen by the Buyer or Buyer's lender(s), then the Buyer shall increase the cash portion of Sales Price payable by Buyer at closing (Down Payment) to meet the underwriting requirements of the Buyer's lender(s), including but not limited to, property value approval, loan-to-value approval, and any other underwriting requirements of the Buyer's lender(s) for loan approval. If the Buyer does not or cannot increase the Down Payment as described above, then the Buyer will be in default and the Earnest Money shall be released to the Seller as liquidated damages or Seller may elect other remedies available at law or in equity in the alternative."
Matt Anderson: Thanks for sharing your comment. Crazy indeed! Thanks for watching.