Appraisal addendums
Yes. So we’re going to pull up the appraisal addendum and I want to show you guys something on it. Well, I don’t. Are we pulling it out or we will. OK, and what we have here.
Ok, so this is our new appraisal addendum. Yes. It’s a little confusing at times. And we talk through them with you guys, but we want to look at the top. It says use only if the third party financing addendum is attached. So if somebody’s paying cash, you don’t need this.
OK, so let’s remember that the other part of this is the transaction does not involve FHA or VA financing. So any type of government backed loan programs, you cannot use this form. OK, so does it make it difficult if you have a buyer that is obtaining FHA or financing? Yes, the answer is yes. So if you have that and they’re trying to compete, there’s a few things that we can do.
One, you have to talk to the lender and see if, you know, is it possible to switch them to a conventional right. You’re going to have to to really communicate with the lender and your client to see if there are other options. The other option is maybe a lender says, you know what, we can waive the appraisal they have. They have money and resources to be able to do waive the appraisal.
OK, you know, there’s things that we can do most likely get an attorney involved to write up the verbiage that would go into the contract and special provisions because we wouldn’t do that ourselves. But let’s think about this. If someone’s obtaining FHA, it’s typically because they want a lower down payment. So if they want a lower down payment, but then they’re going to waive the appraisal, where’s that money going to come from if it comes up short?
So, you know, we just need to kind of think through that. If somebody is getting an FHA loan because maybe their credit score is lower, but they have cash, then that’s a different story. So you have to dive in and really ask these questions to understand what’s going on here.
You know, Shana, that’s really some good information on these forms. Just came out. You did great.
Well, that appraisal Labour’s been out for a while, but yes, you know, I still think that there’s a little bit of confusion on how to fill these out. So we you know, when you guys do these, we tend to talk through them. Either you talk through it with me or with Stacy and we guide you and make sure that we’re doing these correctly.
Ok, but it’s a great thing to review. So if you have one coming up that you’re working on and you’re not ultimately really sure or fresh your mind and like, look back at this episode. Yeah.
And it’ll all be here. If you have a buyer, you should be very familiar with this form because competing in this market, most likely you’re having to waive the appraisal. So if you don’t know what that means and what that means to your client, then we need to be having these discussions. So please reach out to us and let us know so we can make sure. Ok, very good. OK, that’s amazing.
