Who Orders Home appraisal

Question

Hi, I am buying a home.Home inspection is done, found some issues, doing negotiation, in the mean time got call from Mortgage company that you have appointment for home appraisal.I told him that we found issues in home inspection, until we are done with negotiation, we want to put a hold on home appraisal.Mortgage guy told me that it's listing agent( common realtor for buyer and seller) who had setup appointment.I am confused, who decides about home appraisal, Can somebody please put some light on this.Thanks

Wayne Brooks · Answer

@Raj G. You seem to be missing something here.....you Do have an agent, if you didn't use your own buyer's agent, the listing agent is now also Your agent. You already have your answer on the seller doing repairs, who cares if it has "gone thru the attorneys". Either proceed and order the appraisal, or cancel the contract. Letting the agent know this may get the sellers reconsidering, or perhaps they're just "testing the waters" (I do) with the verbal response. You may want to do the same, as a verbal "I'm canceling if they don't do _______" doesn't allow them to actually cancel the contract as verbal is not "official".

Russell Brazil · Answer

In most places the buyer pays for the appraisal and approves it being ordered. The appointment for the appraiser is set up with the listing agent. The time from order to appraisal can take a good amount of time, then from the time he does it till the time he writes it up can also take time. So if you have an appraisal contingency be very mindful of the timelines. In my market the time line from when it is ordered to when we receive it is roughly about 18 days....so an appraisal essentially needs to be ordered as soon as it goes under contract. As markets get hot, the timeline stretches longer. Hot markets can take 4 weeks or more.Your agent should be aware of how long it will take to get the appraisal and thus when it needs to be ordered. If you don't have an agent, this is one of the areas where their expertise would come in handy so you don't overshoot your appraisal contingency date.

Raj G. · Answer

Hi @Wayne Brooks..Thanks, you have very practical/experienced reply, I was thinking the same...

Raj G. · Answer

thanks all for your reply, I asked lender if I can postpone appraisal,he told me talk to listing agent since he has ordered it.

Shawn Ackerman · Answer

@Raj G. the realtor is doing too much! The appraisal is initiated by your lender if your getting financing. The appraisal dictates how much the lender will lend you for the transaction.

Percy N. · Answer

@Raj G., why don't you have your own agent, especially since the seller pays for their commission? Did you sign any agreement with the listing agent to allow dual representation? If not, I would involve another agent who has your best interest in mind.

Jim Cummings · Answer

RajThis is a good example of why you should HAVE YOUR OWN AGENT representing your interests in the deal. My presumption from the tenor of your remarks is - you are inclined NOT TO PROCEED with the transaction unless & until you have satisfactory resolution of the Requested Inspection Repairs. Speak with your Lender and about the timing of the Appraisal. Lender can give you the timeline for the Appraisal and or put it on hold as you deem appropriate.Good luck - Next time - have your own agent!

Russell Brazil · Answer

How longoing is your contingency for the appraisal? It's p9ssible you might not be able to get it done in time. You need to have a discussion with your lender of whether it can likely be done in time...and hope you don't get a slow appraiser. The appraisal has nothing to do with your negotiations. Just be prepared that you will still be paying for the appraisal if you opt out of the contract.

Raj G. · Answer

Thanks @Russell Brazil, my situation match with your reply.I don't have any agent as a buyer, I am working directly with listing agent.We have done with home inspection, my attorney has sent repairs estimate to seller's attorney, till now didn't get any official reply from seller's attorneyBut realtor(listing agent), told us that seller doesn't want to negotiate and won't come down on price,but did not get official reply via attorney.Listing agent is putting pressure on me to have home appraisal asap.If I say yes to listing agent for appraisal, as he is putting pressure on me , does it gives a message to seller, that I will buy the house irrespective of his(seller) reply on our estimate for repair?Should I postpone home appraisal until my attorney gets reply, then based on reply, I decide if I want to go ahead or not and then if yes, then go for home appraisal?

Jeff B. · Answer

The buyer's lender authorizes (ie underwrites) the loan and the appraisal is the property of the lender. see also Ralph's comment.