Can the listing realtor do this?

Question

I placed a bid on a house that is on short sale. The countered me with wanting me to agree to get an appraisal on the house in the next 5 days. Why would I do that if the bank hasn't even approved the sale? Why would they ask for this? Usually the appraisal is done after the offer has been accepted, any reasons why they want be to do it even before they submit the paperwork to the bank?

trblmkr30-they are not asking for an inspection, they are asking for an appraisal, those two are different.

Answer 1

Prices are falling and they have reason to believe that their appraisal will be lower if they wait even a few weeks. (Makes me think that they know of one or more recent sales nearby that an appraisor is likely to use to cut the price they hope to get.) What they are asking is not normal or reasonable in this market. Walk. If you really like the house, it will probably be around, at a lower price, in the near future.

Answer 2

This is a bit odd, as lenders typically get a BPO or an appraisal regarding value in the early stages of a foreclosure sale.

I don't think it has anything to do with the listing Realtor, the Realtor represents the seller, and maybe someone in the loss mitigation department has a new spin on how to process REO properties.

The seller is a lender, but that doesn't mean you have to use this lender, so your lender may require a separate appraisal for loan approval.

Weird, I know.

Answer 3

It's quite simple. The lender is looking for some validation that your offer is within reason, and they don't want to pay for the evidence. Depending on the results they obtain for the appraisal, they will either consider your offer, counter it, or decline it.

This request for appraisal is completely separate from the appraisal you will need to obtain financing. The appraisal is information only for the lender.

The listing realtor has nothing to do with this request. The counter offer is generated by the seller, and the realtor is merely passing the counter offer to you.

Answer 4

Although short sales ARE handled a bit different, I have never heard of an inquiry from the listing agent to a potential buyer to have an appraisal done, maybe she already has clients and is just using you for paperwork for proof and covering her own interests to close... Earnest monies, title companies, banks, etc are the ones who order for Appraisals. I have worked for Smethers Appraisals in Arkansas going on 8 years and know this end of it, and also can tell you it is very hard to find a good Realtor. Go to Realtor.com and find someone to work with, they are all handpicked and investigated before allowed to have a spot on their site. Good luck to you.

Answer 5

I don't know what state you live in; the laws in each state are peculiar to that state. But as a general rule; the appraisal comes with obtaining the loan. If you are obtaining a loan, you need an appraisal. HOWEVER, you are right. Why get an appraisal if they have not accepted your offer. They are hoping someone comes in with a higher offer or that the appraisal is higher. Which in itself is stupid. Because, your lender tells the appraiser what you offered for the home and what the loan is and they never come in with a higher appraisal.

The bank has the final say. Who are you dealing with.

Answer 6

Why can't you call the listing agent and just ask them?

I can understand them wanting a pre-approval letter in 5 days, but I haven't heard of a condition calling for an appraisal in 5 days. An appraisal doesn't mean anything if you are denied financing.

They can counter with anything they want, but you also don't have to accept it either.

Answer 7

Um, it really sounds like the seller is requiring that, if you get accepted on your offer, you have an inspection done within 5 days - that's pretty standard here in Colorado.

I believe that Acermill is wrong in the fact that the bank wants you to get an appraisal for the banks benefit. The bank has already had an appraisal done before they brought it to foreclosure.