Appraisal Addendum PDF Form
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People also ask appraisal gap waiver form
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What is an example of an appraisal gap addendum?
Here's an example of an appraisal gap clause that can be written into the purchase agreement: "If the property does not appraise for the purchase price, the buyer agrees to pay up to $20,000.00 above the appraised value, but not to exceed the purchase price."
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What is an appraisal waiver addendum?
If the appraisal comes in low, then the buyer would need to make a higher cash down payment. The “appraisal waiver” addendum does not bind the buyer to pay a certain amount above the appraised value. The buyer will still pay the sales price on the contract. This addendum only affects the loan amount.
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What is an example of an appraisal gap addendum?
Example: Purchase Price agreed to is $250,000, but Purchaser is concerned the Property will not appraise for that amount and is willing to accept an appraisal up to $25,000 under the Purchase Price. The Purchaser can utilize the Addendum and insert an Appraisal Minimum of $225,000.
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What is an appraisal addendum?
An appraisal addendum protects the buyer from acquiring an undervalued home. If a property appraisal does not value the home at the minimum sale price, an appraisal addendum allows the buyer to withdraw from the sale. The buyer then has the right to terminate the contract and receive their earnest money back.
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What is the most common addendum in real estate?
Common addendums include contingencies such as home inspections or the sale of the buyer's house, as well as including certain items, like furniture.
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What is the purpose of an addendum in real estate?
A real estate addendum modifies an original lease or purchase agreement. Items in the addendum could reflect a change in the agreed-upon price, what is included in the transfer of property, what improvements must be made before the home is paid for, or any other agreed-upon requests or responsibilities.
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How do you write an appraisal clause?
Here's an example of an appraisal gap clause: "Buyer and seller agree that if the appraised value comes back lower than the purchase price, buyer agrees to pay up to $20,000 above appraised value, but not exceeding the purchase price." Appraisal gap clauses can help strengthen your offer in a bidding war.
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How risky is waiving appraisal contingency?
Risks of Waiving the Appraisal Contingency Waiving the appraisal contingency can be risky if you're uncertain that the home is worth what you're offering for it. It also risks any earnest money deposit you pay when your offer is accepted. Typical earnest money deposits range from 1% to 3% of the home's value.
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