We're first time home buyers in a hot sellers market. We are under contract for a home with an appraisal contingency in place. We presented as cash (and showed proof of funds), however, we intend to take out a mortgage for 20% of the current contract price and cash flow the rest. We waived a financing contingency because we are not worried about our ability to obtain a mortgage before our contractual closing date. Our mortgage requires an appraisal due to Fannie Mae requirements. We think it's possible that our current contract price is higher than the CMA comps, and we included an appraisal gap in the contract.
My question is this, would you use the mortgage appraiser or hire your own independent appraiser to use for appraisal contingency purposes? My assumption is the one hired by the mortgage company will try to justify the contract price. And the one we hire would be a more independent evaluation (other than the fact that we hired him), more likely in line with CMA comps. The seller would see, however, that we entered the house with two different appraisers, which could reduce our negotiating power if the home under appraises. There were three offers on the home, two of which were cash.
My question is this, would you use the mortgage appraiser or hire your own independent appraiser to use for appraisal contingency purposes? My assumption is the one hired by the mortgage company will try to justify the contract price. And the one we hire would be a more independent evaluation (other than the fact that we hired him), more likely in line with CMA comps. The seller would see, however, that we entered the house with two different appraisers, which could reduce our negotiating power if the home under appraises. There were three offers on the home, two of which were cash.
Statistics: Posted by BelleGomery — Tue Jun 25, 2024 8:00 pm — Replies 11 — Views 571