Is this realtor correct ?

[Cody Wray]

I’m speaking to a realtor for a listed $89,900 for a 4plex . I mentioned getting it appraised . This was her response . “””””When the property is under contract your lender will send out an appraiser. They will not accept the appraisal of anyone else. The sales contract protects the buyer. There is a paragraph that reads that the property has to appraise at or below sales offer or the buyer does not have to move forward. No way that you will have more money in a property than it is valued at.””””””. I thought it was possible to go into a deal sometimes with equity already in it ? And to do that wouldn’t it have to appraise for more than I buy it for?

[Kyle J.]

@Cody Wray  A few comments/thoughts:

Like @Joe S. said, if you're financing this purchase, your lender will order the appraisal. 

The appraisal needs to be at or ABOVE your agreed upon purchase price as far as you and your lender are concerned, not at or BELOW the agreed upon purchase price like that realtor told you.  If that was a direct quote from her you posted, she probably just misspoke. 

Lastly, it actually is common to have an appraisal contingency in a purchase contract for a financed offer (despite what someone else said above).  Here's how that contingency is worded in my state's standard contract: "APPRAISAL CONTINGENCY AND REMOVAL: This Agreement is (or, if checked, is NOT) contingent upon a written appraisal of the Property by a licensed or certified appraiser at no less than the purchase price. Buyer shall, as specified in paragraph 14B(3), in writing, remove the appraisal contingency or cancel this Agreement within 17 (or ___) Days After Acceptance."

Hope that answers all your questions.