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Short Sale - Who pays for appraisal?

Hi All,

If you have gone through a short sale, who paid for the appraisal? You did or the bank? 

The mortgage broker is telling us that we need to pay for it, but what if something happens and we do not buy this home? we are going to be out $425.

Thank you


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Re: Short Sale - Who pays for appraisal?

  • We had to pay for the appraisal.  I was apprehensive about it as well because you end up losing the money, but we were told it was the only way. 
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  • We didn't buy a short sale, but we had to pay for the appraisal on the home we bought. I think it's normal for the buyer to pay for this.

    However, we didn't have the appraisal until after our offer was accepted. Also we had the home inspection done before the appraisal. That way if there was something major wrong with the house, we could have backed out of the deal if we needed to without having to spend money on the appraisal. Hopefully in your offer you have a "pending home inspection" clause that will allow this.

    I think the buyer pays for the appraisal because it's really in the best interest of the buyer to have one done. You are buying the home and you don't want to pay more than what the home is appraised for. Also, the bank will not lend you more money than what the appraised value is.

  • The buyer pays for the appraisal in every case as far as I know. We bought a foreclosure and paid for ours.

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  • Ditto, we bought a foreclosure and paid for the appraisal ourselves.
  • I am currently in buying a short sale and we have to pay for the appraisal. You have to find out what the bank and seller is paying but we were told that we have to pay for it and if the house doesnt go thru i believe you loose the money which suxs.
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