Do you have to have a contract signed in order for the lender to order an appraisal of that property?

Get Legal Help Today

 Secured with SHA-256 Encryption

Do you have to have a contract signed in order for the lender to order an appraisal of that property?

If the appraisal of our home comes in lower than the asking price, the buyer won’t have enough money to make up the difference between the appraisal price and the asking price. We don’t want to sign the contract and have our house essentially off the market while we wait for the appraisal. Can the lender order a appraisal without a contract?

Asked on May 9, 2012 under Real Estate Law, Colorado

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

A lender can order an appraisal if it wants to, so long as the owner's consent, prior to tghere being a signed contract; on the other hand, a lender is not required to do so. Speak with the potential lender (the buyer's bank, so presumbly with the buyer), explain the situation, and see if they will have it appraised by an appraiser whose recommendation they will accept if you pay for the appraisal, prior to signing the contract; or if not, see what suggestions or alternatives they have.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption