Have been asked by the seller to pay for the appraisal of the property. Last time I was doing this each got their own. Owner fishing for a free appraisal? I don't have to show them the appraisal when I pay. Looking at 350.00 for house and out buildings. I am sure many have been asked this what is your suggestions?
- Thread starter 1936
- Start date
Hotflashjr
Well-known Member
- Location
- Western MA
To me that sounds bad. I work in lending and the buyer always gets their own because it is a conflict of interest for you as the seller to obtain the appraisal on your property. You chose the appraiser; that's too much room for you as the seller then to choose a "friend". On the surface if looks un-ethical. I personally would tell them no and if I were to advise you in a professioanl manner I would no way accept an appraisal as the lender that you, as the seller, paid for and had completed.
Anonymous-0
Well-known Member
If the seller has and asking price why would he now want an appraisal?
Also do you have property tax in your area? I would think the seller would have an appraisal from the taxing authority, if he does do the taxes have some relevance to the actual worth of the properties or are they based on square footage and not on the actual condition of the property?
Also do you have property tax in your area? I would think the seller would have an appraisal from the taxing authority, if he does do the taxes have some relevance to the actual worth of the properties or are they based on square footage and not on the actual condition of the property?
In my area that's pretty standard. You need your own appraisal. In fact if you are borrowing money to buy, your lender will require an independent appraisal. Otherwise, the seller could shop for a "high" appraisal to inflate the actual value of the property.
Now if you are only negotiating who pays, at closing the seller can pay for the appraisal. But you better be able to pick an appraiser that's independent of the seller.
slim
Now if you are only negotiating who pays, at closing the seller can pay for the appraisal. But you better be able to pick an appraiser that's independent of the seller.
slim
Geo-TH,In
Well-known Member
Where I live in West Central Indiana, my county has a web sight that uses BEACON. Our property taxes are deterimed by a state appraiser. All I have to do is put in my address and it will show me the land and building values along with the taxes. You can also look your neighbors property to see is you are being overcharged, which at one time I was.
I feel this gives me a fair market value of my properties. It doesn't cost me a thing. However, the values are a year or two old.
If you are getting a loan, the bank will have to do an apprasial, which the buyer will pay for as a part of his closing costs.
I would never purchase any property without going through a title company.
George
I feel this gives me a fair market value of my properties. It doesn't cost me a thing. However, the values are a year or two old.
If you are getting a loan, the bank will have to do an apprasial, which the buyer will pay for as a part of his closing costs.
I would never purchase any property without going through a title company.
George
If you are the buyer, I would think you would want your own appraisal. Or, if you are happy with the deal and are paying cash, you don't need one.
If financing the bank will require one.
As the buyer you should want one to make sure you are not over-paying the value of the property.
Rick
If financing the bank will require one.
As the buyer you should want one to make sure you are not over-paying the value of the property.
Rick
You're the buyer, right? Normally, the only need for an appraisal is for financing. The bank picks the appraiser, buyer pays for it as part of his loan closing costs. If there is no need for appraisal for financing, why are you getting one? If seller wants one, let him pay for it. If you want one, for whatever reason, you pay for it.
A note of caution about using county tax values as substitute for an appraisal: Most assessor's offices are now underfunded and understaffed, and their values are getting further and further from reality. Oftentimes, they don't even look at the property, and just apply a percentage adjustment from the last go around. In my county, I know of a buildable 2 acre parcel with road frontage that the county values at $200, and a 1.7 acre abandoned railroad right of way that is landlocked and unusable, valued at $15,000. I have always maintained that our Assessor is the most incompetent in all the world, but then again, the world is a pretty big place. . .
A note of caution about using county tax values as substitute for an appraisal: Most assessor's offices are now underfunded and understaffed, and their values are getting further and further from reality. Oftentimes, they don't even look at the property, and just apply a percentage adjustment from the last go around. In my county, I know of a buildable 2 acre parcel with road frontage that the county values at $200, and a 1.7 acre abandoned railroad right of way that is landlocked and unusable, valued at $15,000. I have always maintained that our Assessor is the most incompetent in all the world, but then again, the world is a pretty big place. . .
Anonymous-0
Well-known Member
let's say I was selling a tractor for $1500 and you wanted to buy it.
the only catch is if you want an appraisal you'll have to pay for it out of your own pocket.
also if you'll have to pay to transfer any titles into your name.
oh, and if you want to register it you'll need to pay for that too.
almost forgot if you want insurance you need to pay for that also.
tractor is sold as is. any repairs or upgrades come out of your pocket.
if you need to borrow money to buy the tractor, the person lending you the money might request appraisals, EPA checks, and a notarized bill of sale along with a contract and witnesses... You need to pay that too.
Basically I just want my $1500 and I'll give you the tractor, anything else is on you.
If you're nice I might help you load it on your trailer... what you don't have a way to get the tractor home????
that's extra
the only catch is if you want an appraisal you'll have to pay for it out of your own pocket.
also if you'll have to pay to transfer any titles into your name.
oh, and if you want to register it you'll need to pay for that too.
almost forgot if you want insurance you need to pay for that also.
tractor is sold as is. any repairs or upgrades come out of your pocket.
if you need to borrow money to buy the tractor, the person lending you the money might request appraisals, EPA checks, and a notarized bill of sale along with a contract and witnesses... You need to pay that too.
Basically I just want my $1500 and I'll give you the tractor, anything else is on you.
If you're nice I might help you load it on your trailer... what you don't have a way to get the tractor home????
that's extra
Anonymous-0
Well-known Member
I bought some farm ground in 1992. It was a private sale, meaning it wasn't advertised or it wasn't an auction. Someone mentioned that they might want to sell it and I called them and they did. Anyway, the bank wanted me to get it appraised so they gave me the name of a "good" appraiser. I called him and asked how he would appraise it. Would he use a value of how much the land was capable of making in order to pay for it, what the land would bring if put on the open market, or what the value was for tax purposes was. There would be a huge difference in the 3 options. He said, "I guess we will do it however you want to do it." I told this to the banker and said why should I have to pay $350 dollars for this and they said I didn't need to, so we didn't get it appraised. Both the sellers and I were happy with the agreed price.
johndeerefan
Member
As stated above, if you are financing it (I assume you are) the bank has the appraisel done for your loan. It will be included with the closing cost of the mortgage. Most banks have a list of certified appraisers they use exclusively.
Make sure you put in the purchase agreement that the property sale is contengent upon the appraised value. Meaning, the property has to be worth equal to or less than the purchase price. if not, you can void the sale and get your deposit money back. This will keep you from having to pay the additional amount out of your pocket since the banks only finance about 80% of the loan value. So, you don't want to have to come up with the remainder of it.
Make sure you put in the purchase agreement that the property sale is contengent upon the appraised value. Meaning, the property has to be worth equal to or less than the purchase price. if not, you can void the sale and get your deposit money back. This will keep you from having to pay the additional amount out of your pocket since the banks only finance about 80% of the loan value. So, you don't want to have to come up with the remainder of it.
Anonymous-0
Well-known Member
As the buyer I would want to pay for an appraisal so I had a good idea what comparable property has sold for. I would not share it with the seller unless he wanted too much for the property then I would make him an offer based on the appraisal using it to show him why I think this is what it is worth also taking into account how much I want it. If he thinks it is worth too much above the appraisal and won't move you won't be able to agree on a price appraisal or not.
It sounds like the seller got an appraisal in order to set the price of the property and now wants 1936 to pay for that appraisal at the closing table. If this is how it happened and 1936 is being asked to pay for the appraisal [b:7696191f42]after[/b:7696191f42] the sellers signed the paperwork to sell, then the proper answer is "pound sand".
You have to decide though, is it worth losing the property over $350? Sellers can back out (not legally but it still happens) and how you gonna force the sale to go through? Even if you can force it, it will end up costing you way more than $350. Sometimes you are better off just paying up....
You have to decide though, is it worth losing the property over $350? Sellers can back out (not legally but it still happens) and how you gonna force the sale to go through? Even if you can force it, it will end up costing you way more than $350. Sometimes you are better off just paying up....
I'd laugh. If I want an appraisal, I'll get one, no way I'm paying for someone elses. If he wants to try to chicken s me for 300 bucks he can find another sap to buy it. If I get my own appraisal the appraiser knows from the get go who he is working for and who is paying him.
Cant say anyone I've bought property from has ever asked me to do this.
Cant say anyone I've bought property from has ever asked me to do this.
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