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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 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.
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