Posted by JPiper on June 10, 2000 at 14:25:50:
You could do it that way…have the seller reimburse if the appraisal doesn’t come in at a specified dollar figure. Of course then if the seller doesn’t pay, you would have to sue.
You could also have the seller pay, and you agree to reimburse if the appraisal is a specified figure. That way, if it doesn’t come in, you don’t have to chase the seller for the money.
But the other factor is that you should KNOW, based on the comps that you have run, what the value of the property is, and roughly how the appraisal will come in. When you say “I can get the house for well under what I was told the appraised value would be.”, it sounds like you’re relying on someone else for value…always a poor idea. If YOU don’t know the value of what you’re buying or contracting for…this is going to be a mighty tough business.