Addendum: Seller accepts appraised value when appraised value is unknown?

Layer-visible-off
0
Unfavorites
0

We are selling our home and the appraisal was just completed. I understand we (the sellers) are not entitled to a copy of the appraisal (since we never added that into the initial contract) but now our realtor just handed me an addendum with three items. 1 is a change of the closing date 2 specifically states “Seller to accept appraised value of home.” and 3 states all other terms to remain the same.

My question is: Without knowing what the appraisal came in at and already having a price that was agreed upon why would I need to sign anything stating that I agree to accept the appraised value of the home?

A preemptive thank you for any help.

6 months ago High Roller said:
 

As an update: We ended up going to a real-estate attorney in town and the suggestion was to remove line item 2 and add the verbiage “Buyer agrees to pay the contracted sales price OR the appraised value, whichever is greater.” We decided not to add that and simply removed the language out of the addendum. As it turns out, the appraisal came in at about 7.5% above the sales price which is why they added that language – so that we wouldn’t come back and try to negotiate more (why they didn’t just keep their mouth shut and push to close faster is beyond me since we never would have known). That’s fine, it just means that the buyer’s bank won’t have any problems issuing the loan and we’re more interested in being able to purchase a home that popped up than in missing out, relisting our house and hoping to squeeze another $5-10k out of our house (going into winter to boot). Also, according to the attorney, based on California state law (which we are not in CA but we could have used that case as precedence in NV), if the appraised value comes in at 15% or higher above the sales price of the home, the seller is entitled to renegotiate the closing costs (including fees, i.e realtor fees) such that the net proceeds from the sale are higher. The contracted sales price can’t change but you can force the buyer to pay more of the fees and the seller can pocket more money. We also found the easiest way for us to find out what the appraised value was to have our lender (for the house we are attempting to purchase) get a hold of the lender of the people who are buying our house. The two lenders apparently did not have any issues passing information back and forth. Good luck to everyone else out there and a huge thank you to the MND folks that responded to the question. The attorney agreed that you NEVER sign anything that talks about a valuation that does not have a specific number attached.


0

That’s a new one, and you need to ask your realtor what the appraised value was. Don’t THINK it’s an issue, since they are NOT asking you to reduce the sales price, but in 13 years I have never heard of a seller being asked to accept the appraised value since it really is of no concern to the seller, UNLESS the sales price is being reduced due to appraised value. You could add “sales price to remain $xxxxx, regardless of appraised value” to the amendment, that would alleviate any concerns on appraised value impacting the sales price. Hope that helps. Ted

updated 6 months ago
Ted Rood
1093 6
Answered 6 months ago
Ted Rood
1093 6

0

Yes, this may be a sneaky ploy to lower the value of the purchase agreement. If you have an agreed price of $250,000 but then there is an addendum dated some days later stating that you will accept the value of the appraisal, it may indicate that you are willing to accept the appraised value as the purchase price. (I am not sure if the language would hold up in court.)

If the appraisal comes in substantially less, lets say $225,000, and you sign the addendum, you may be locking the appraised value in as the purchase price.

If you want to sign the addendum, I would counter by saying that “Seller accepts appraised value and buyer is required to personally increase their down payment to cover any price differences between the appraised value and the purchase price.”

Answered 6 months ago

0

HMMMMM. I’ve seen this, and the appraisal was much higher than the contracted price.

Answered 6 months ago

You Must Be Logged In To Answer