Posted on: 08th Aug, 2007 05:02 am
Hi guys, can anyone help me out with this. My finace' and I were to buy his late granny's home and cannot decide. His aunts had a comparative market analysis being done but the bank is asking for a copy of the appraisal. it seems that they want a comparative analysis but we are not aware as to how this works?? Who is it that pays for the appraisal – the seller or buyer??
It seems that your finance's aunts are interested to go for a comparatively analysis. But if you are buying the home with a mortgage, the lender or the company will probably ask you for an appraisal to determine your home value and hence the loan to value ratio. In such a case, the seller or the aunts will have to allow the lender to have an appraisal done on your home. The lender may also allow you to appoint an appraiser for evaluating the value of the home.
"Who is it that pays for the appraisal – the seller or buyer??"
Its generally that you will have to bear the expense for the appraisal.
Miller
Its generally that you will have to bear the expense for the appraisal.
Miller
"His aunts had a comparative market analysis being done but the bank is asking for a copy of the appraisal. it seems that they want a comparative analysis but we are not aware as to how this works?? "
You will have to contact an appraiser to get the appraisal done for the home. Banks do not accept any CMA while considering your loan application that is the reason you will have to get the appraisal done.
You will have to contact an appraiser to get the appraisal done for the home. Banks do not accept any CMA while considering your loan application that is the reason you will have to get the appraisal done.
Hi Michael,
Welcome to the forum.
Usually a home buyer pays for the appraisal since he is the person who needs a mortgage. However, if the home buyer puts down a very low amount of cash, he may request the seller to pay for him as a part of his closing costs. However, if you make a down payment of 20% of the purchased price, the seller will not be paying for it.
Hope this helps..
God bless you.
Samantha
Welcome to the forum.
Usually a home buyer pays for the appraisal since he is the person who needs a mortgage. However, if the home buyer puts down a very low amount of cash, he may request the seller to pay for him as a part of his closing costs. However, if you make a down payment of 20% of the purchased price, the seller will not be paying for it.
Hope this helps..
God bless you.
Samantha
i was looking in to a refi and the lender agreed tp pay for the appraisel even took it out of closing line on hud statement. they didnt pay cause i didnt refi and now the appraiser is hounind me. is this legal
hi lee obryan,
lenders will ask for a appraisal when you try to refinance the property. as far as i know, it is you who will have to pay the appraiser because it's your property which is being appraised. so the appraiser has the right to claim the money from you.
lenders will ask for a appraisal when you try to refinance the property. as far as i know, it is you who will have to pay the appraiser because it's your property which is being appraised. so the appraiser has the right to claim the money from you.
Hey lee obryan,
I have been in situations like this. In terms of legality, because the lender is usually identified in the appraisal as the client and thus inherits the rights of the appraiser/client relationship, it is ultimately the lenders responsibility to pay the appraiser. However, I have been in situations where attempts to collect from the lender are unsuccessful, and collection is then attempted from the homeowner, sometimes even at the request of the lender. This can get very sticky in legal issues, since requirement of payment from the homeowner can be argued that it may invoke privity of contract. This would mean that if payment was required from the homeowner, the homeowner then shares the responsibility as well as the priviledge of the appraiser/client relationship and then retains rights to ownership of the appraisal. Not that some would even care, but it is easy to see how in certain situations, this could cause major problems.
Long story short, the appraiser does have a right to try to collect and in many states could go as far as placing a lein on the property. Of course, you could try to fight it and probably win but after spending tons of money on legal fees, it may just be easier to pay for it and be done or get on the lender and make them take care of it like they promised originally.
I have been in situations like this. In terms of legality, because the lender is usually identified in the appraisal as the client and thus inherits the rights of the appraiser/client relationship, it is ultimately the lenders responsibility to pay the appraiser. However, I have been in situations where attempts to collect from the lender are unsuccessful, and collection is then attempted from the homeowner, sometimes even at the request of the lender. This can get very sticky in legal issues, since requirement of payment from the homeowner can be argued that it may invoke privity of contract. This would mean that if payment was required from the homeowner, the homeowner then shares the responsibility as well as the priviledge of the appraiser/client relationship and then retains rights to ownership of the appraisal. Not that some would even care, but it is easy to see how in certain situations, this could cause major problems.
Long story short, the appraiser does have a right to try to collect and in many states could go as far as placing a lein on the property. Of course, you could try to fight it and probably win but after spending tons of money on legal fees, it may just be easier to pay for it and be done or get on the lender and make them take care of it like they promised originally.
by all means, lee obryan, you ought to fight this. i presume you have a copy of your good faith estimate, which would reflect no charge by the lender for the appraisal work.
please don't be intimidated by the thought of legal fees. if what you've told us is accurate, the lender must eat the fee. it's truly a cost of doing business for lenders - if they fail to collect a fee, that's their problem. in no way ought a potential borrower be required to pay the fee based on the lender's inability/unwillingness/error in failing to collect it up front.
benjamin, i can't disagree with you more here.
please don't be intimidated by the thought of legal fees. if what you've told us is accurate, the lender must eat the fee. it's truly a cost of doing business for lenders - if they fail to collect a fee, that's their problem. in no way ought a potential borrower be required to pay the fee based on the lender's inability/unwillingness/error in failing to collect it up front.
benjamin, i can't disagree with you more here.
