Do You Need An Appraisal Contingency?

Once you have signed the purchase and sales agreement, the property will be appraised by a licensed appraiser. The home appraisal is an estimate of what the property is valued at. The appraisal takes into account a number of factors such as the location of the home, the condition of the house, and recent sales of like homes in the area. The value that is determined by the appraiser is the maximum amount that can be loaned out by a mortgage company.   

If you’re buying a $300,000 home, but the appraisal comes back at $297,000, you’ll need to pay the remaining $3,000 out of pocket in addition to the down payment and the closing costs that are paid up front at the time of purchase.

If the appraisal comes in too low, you might not have the necessary funds in your bank account to actually make the purchase of the home. Since you have already signed the purchase and sales agreement, you have signed a legally binding contract that states that you will in fact buy the home from the seller. If you break the agreement, you’ll lose your deposit, which could be a significant sum of money.  

The Appraisal Contingency

Most purchase agreements contain something called an appraisal contingency. This is an out for the buyer in the case of a low appraisal. If the appraisal is less than the agreed upon price, there’s a way for you as a buyer to get out of the contract without it taking a hit on your finances. You need this contingency to protect you.  

Is Waiving The Appraisal Contingency Is A Good Idea? 

You could be in a situation where you might consider waiving the appraisal contingency. This would be a case where you agree to pay the entire amount of the contact price, even in the event of a low appraisal. This gives the seller a clear message that you want the home no matter what. The only way that you should even really consider doing this is if there is a lot of competition for the home that you want to purchase. If an appraisal comes back much lower than expected, you’ll be expected to make up the difference in price. In most cases, it’s a good idea to keep the appraisal contingency in the agreement to protect yourself as a buyer.

How To Know For Sure

This is why it’s so important to hire a real estate agent. In many states, agents are able to give you advice on the best course of action for buying a home. You can also hire your own attorney to help you through the legal portions of the home buying process. In other states, attorneys are required for the sale of a home. These lawyers will be able to advise you as a buyer what’s in your best interest. Your attorney is there to protect you!

Open house on 7/23/2017 at 97 Bogastow Brook Road Sherborn, MA 01770


Date: 07/23/2017 Time: 2:00 PM to 3:30 PM  
For Directions: feel free to contact me.  
For more information: click here for the full details  

Elegant & stately five bedroom Colonial surrounded by lush landscaping, brick patios, gorgeous pool & cabana area. Living areas are graciously proportioned and include large marble foyer, first floor study, four season sunroom with cathedral ceilings just off the dining room and family room areas. Classic living and dining areas are great for entertaining. Open kitchen with stainless ovens, wide pine floors and cherry cabinets that open to large breakfast nook and family room. Mudroom entrance to the side/rear with tiled floors offer ample storage and back staircase to second floor. A generous sized landing on the second floor has expansive hall with four sunny bedrooms & stairs leading up to third floor which has fifth bedroom/bonus area. Finished lower level with both carpet and tiled areas with large laundry room. Three-car detached garage with storage above. Enjoy sailing and swimming in Sherborn’s own Farm Pond and Dover-Sherborn top-rated schools.

Open house on 7/23/2017 at 11 Davis Brook Drive Natick, MA 01760


Date: 07/23/2017 Time: 11:30 AM to 1:00 PM  
For Directions: feel free to contact me.  
For more information: click here for the full details  

Gracious South Natick Farmhouse Colonial w/wraparound porch in Farm Hill Village is wonderful for both formal and casual living. Current owners have expanded from original design. Kitchen with granite counters, stainless appliances, hexagonal dining area and light-filled breakfast nook. This opens to family room with coffered ceilings, door leading to bluestone patio, stone walls & new outside fireplace. First floor office with cherry built-ins & pass through wet-bar area to formal living room w/custom fireplace. French doors and transom windows lead back to foyer & dining room. There are five generous bedrooms on second flr. Master suite includes a dressing/sitting room added in renovation w/custom closets. 4 add’l bedrooms are serviced by 2 tiled baths & reading/sitting area. Lower level has direct access to garage, several finished rooms with full bath and hardwood floors in new work-out area. All located minutes to Wellesley and Natick.

Reasons to Add Your House to the Real Estate Market Today

Adding your house to the real estate market today may prove to be a great decision. In fact, there are many terrific reasons to list your home today, including:

1. You may be able to generate a profit on your house.

If you maintained your home over the years, the residence may have increased in value. Thus, you may be better equipped than other home sellers to generate a profit on your residence.

Furthermore, if you’re preparing to enter a seller’s market, you may be able to earn a significant profit in no time at all.

A seller’s market frequently includes an abundance of homebuyers and a shortage of home sellers. As such, if you add a high-quality house to a seller’s market, it may be only a matter of time before you receive multiple offers at or above your initial asking price.

2. You can downsize your home or upgrade to a larger residence.

Although your current residence may have served you well for an extended period of time, now may prove to be a great time for a change. Fortunately, if you add your house to the real estate market, you can take the next step to downsize your residence or upgrade to a larger residence.

For those who want to downgrade, it may be simple to sell a house and get rid of excess items at the same time. Then, you can relocate to a smaller residence that better suits your budget and personal needs.

On the other hand, those who want to move into a bigger and better residence can explore a vast array of residences any time they choose. After a home seller finds a buyer for his or her residence, this individual will have plenty of funds to pursue a superior residence as well.

3. You can embark on a new adventure.

Selling a home opens new doors for any individual, at any time.

For example, you can use the funds from your home sale to go on a cross-country journey. Or, you may choose to move closer to family members and friends in another area of the country. Regardless of which option you choose, you won’t have to worry about being saddled to a home mortgage after you sell your residence.

Consider the short- and long-term ramifications of selling your house, along with what you’ll do immediately following a home sale. By doing so, you can map out the next stage of your life.

Of course, if you ever have concerns or questions about selling a house, it is always best to consult with a real estate agent. With a housing market professional at your side, you can receive expert insights throughout the home selling journey.

A real estate agent will keep you up to date about offers on your house and offer honest, unbiased home selling recommendations. In addition, he or she is ready to respond to your home selling queries at any time.

Get ready to sell your home – meet with a real estate agent, and you can take the next step to add your residence to the real estate market.