When you buy a home for sale in Aspen by using a mortgage loan, your lender will most likely require you to have a home appraisal. That means a qualified, third-party appraiser will visit the home and determine how much it’s worth.
If the home isn’t worth what the seller is asking for it, you might have an uphill battle ahead of you – and you might have to decide whether you want to come up with additional money to buy the house or walk away from the deal. That’s where the home appraisal contingency comes in.
What’s an Appraisal Contingency in Real Estate?
A home appraisal contingency in real estate comes into play when an appraisal comes in low. That means the appraiser has evaluated the home and found it to be worth less than what the seller is asking you to pay for it.
In cases like those, the lender will balk at giving the full amount you’re asking for. Lenders don’t want to let you borrow more than the home is worth, because if you default on your payments, the lender is going to be on the hook for that extra cash… and it can’t recoup it by selling the home.
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When you have an appraisal contingency in your contract, you have the right to ask the seller to come down on the price. You could come up with the difference between what the seller’s asking and what the bank is willing to lend you, too. Finally, you have the option of walking away from the deal if the seller isn’t willing to budge on price and you can’t – or simply don’t want to – come up with the extra cash.
Are You Selling a Home in Aspen?
If you’re ready to sell your home in Aspen, Woody Creek, Basalt, Carbondale or Snowmass, we may be able to help you.
Get in touch with us right now to find out how much your home is worth – and discover how we’ll be able to help you sell it quickly and for top dollar.
If you’re also looking for a home for sale in Aspen or a nearby community, check out our:
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