Seller wants us to waive appraisal clause - thoughts?

[Munim Jalil]

Hi All,

I like to the BP thoughts on this.

Context - We are in the midst of purchasing a 3-family property in NYC to be used as an investment rental.

We agreed upon a purchase and had our contract drafted and sent to the sellers lawyers.

The seller came back very upset, that he wants us to waive the mortgage appraisal clause in our contract? This clause protects in the case of us needing to walk away from the deal if the appraisal comes in too low. NYC property’s fluctuate quite a bit from neighborhood to neighborhood. The current assessed tax value is $780k and the agreed upon purchase price is $995k.

We also had additional clauses for his tenants since he had a section 8, requesting him to escrow some money until the rent starts to come to us - since the transition takes forever.

The sellers seems like he just wants to completely unload the property without any stipulation.

I wanted to hear folks thoughts on the matter?