How binding is a subject-to-completion appraisal report?

How binding is a subject-to-completion appraisal report?

A subject-to-completion appraisal report is not legally binding. It is an estimate of a property’s value based on various factors such as location, condition, and comparable sales. The purpose of this report is to provide guidance to the parties involved in a real estate transaction, but it does not serve as a guarantee of the property’s value.

What is a subject-to-completion appraisal report?

A subject-to-completion appraisal report is an assessment of a property’s value that is contingent on certain conditions being met, such as repairs or renovations being completed before the final appraisal is conducted.

Who typically orders a subject-to-completion appraisal report?

A subject-to-completion appraisal report is usually ordered by a lender or a buyer to determine the value of a property before finalizing a real estate transaction.

What factors are considered in a subject-to-completion appraisal report?

A subject-to-completion appraisal report takes into account various factors such as the property’s location, size, condition, amenities, and recent sales of similar properties in the area.

How long does it take to receive a subject-to-completion appraisal report?

The time it takes to receive a subject-to-completion appraisal report can vary depending on the complexity of the property and the availability of the appraiser. Typically, it can take anywhere from a few days to a few weeks to receive the final report.

Can a subject-to-completion appraisal report be contested?

If you believe that the information in a subject-to-completion appraisal report is inaccurate, you have the right to contest it. You can provide additional evidence or request a reevaluation of the property by another appraiser.

Can a subject-to-completion appraisal report affect the final sale price of a property?

Yes, a subject-to-completion appraisal report can impact the final sale price of a property. If the appraised value is lower than the agreed-upon sale price, the buyer may request a renegotiation of the terms or the seller may be required to lower the price.

Are subject-to-completion appraisal reports required for all real estate transactions?

While subject-to-completion appraisal reports are not mandatory for all real estate transactions, they are commonly requested by lenders to ensure that the property is worth the amount being borrowed.

Can a subject-to-completion appraisal report be used for tax purposes?

A subject-to-completion appraisal report can be used for tax purposes to determine the assessed value of a property. However, it is important to note that the assessed value for tax purposes may differ from the market value determined by the appraisal report.

Is a subject-to-completion appraisal report the same as a home inspection?

No, a subject-to-completion appraisal report is not the same as a home inspection. While both assessments evaluate a property, an appraisal report focuses on the property’s market value, while a home inspection assesses the condition of the property’s structure, systems, and components.

Can a buyer use a subject-to-completion appraisal report to negotiate a lower price?

Yes, a buyer can use a subject-to-completion appraisal report to negotiate a lower price if the appraised value is lower than the agreed-upon sale price. The buyer can present the appraisal report to the seller as evidence for a price reduction.

Can a seller request a subject-to-completion appraisal report before listing their property?

Yes, a seller can request a subject-to-completion appraisal report before listing their property to get an idea of the current market value. This can help the seller determine an appropriate listing price and attract potential buyers.

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