Is an appraisal contingency based on business days or calendar days?

Appraisal Contingency:

An appraisal contingency is a clause in a real estate contract that allows the buyer to back out of the deal if the property does not appraise for the agreed-upon purchase price. One common question that arises regarding appraisal contingencies is whether they are based on business days or calendar days.

Answer:

**An appraisal contingency is typically based on calendar days**, not business days. This means that the buyer has a certain number of days from the date of the contract to obtain an appraisal of the property and decide whether to move forward with the purchase.

FAQs:

1. What is an appraisal contingency?

An appraisal contingency is a clause in a real estate contract that gives the buyer the option to back out of the deal if the property does not appraise for the agreed-upon purchase price.

2. How long does an appraisal contingency typically last?

An appraisal contingency usually lasts anywhere from 10 to 14 calendar days, but this can vary depending on the terms negotiated in the contract.

3. What happens if the property appraises for less than the purchase price?

If the property appraises for less than the purchase price, the buyer can either walk away from the deal or renegotiate the price with the seller.

4. Can the appraisal contingency period be extended?

Yes, the appraisal contingency period can be extended if both parties agree to an extension in writing.

5. Do appraisal contingencies vary by state?

Yes, appraisal contingencies can vary by state, so it’s important to consult with a real estate agent or attorney to understand the specific rules in your area.

6. Are there any drawbacks to including an appraisal contingency in a real estate contract?

One drawback of including an appraisal contingency is that it can potentially delay the closing process if the appraisal comes back lower than expected.

7. What happens if the buyer waives the appraisal contingency?

If the buyer waives the appraisal contingency and the property appraises for less than the purchase price, the buyer is still obligated to proceed with the purchase.

8. Can the seller require the buyer to waive the appraisal contingency?

While the seller can request that the buyer waive the appraisal contingency, it is ultimately up to the buyer to decide whether to do so.

9. What should buyers do during the appraisal contingency period?

During the appraisal contingency period, buyers should schedule an appraisal of the property and carefully review the results to determine if they are comfortable moving forward with the purchase.

10. Can sellers request a copy of the appraisal report?

While sellers are not entitled to a copy of the buyer’s appraisal report, they can request one as part of the negotiation process.

11. Can sellers back out of the deal if the property appraises for more than the purchase price?

If the property appraises for more than the purchase price, sellers cannot back out of the deal based on the appraisal results.

12. Can buyers use a low appraisal as a bargaining chip to negotiate a lower purchase price?

Buyers can use a low appraisal as a bargaining chip to negotiate a lower purchase price, but whether the seller agrees to the new price is ultimately up to them.

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