Appraisal, Title and Financing

🏦 Buyer Financing

In this article, lender means the bank, mortgage company, credit union, or other financial institution the buyer is using to finance the purchase.

After the contract is accepted, the buyer works with the lender to complete underwriting and satisfy loan conditions. The lender may verify income, assets, debts, insurance, property eligibility, and other requirements.

We communicate with the buyer or buyer’s agent and the lender as appropriate, monitor financing deadlines, and keep you informed.

📈 The Appraisal

When required, the buyer’s lender orders an appraisal to obtain an independent opinion of value and evaluate the property for the loan program. No one can hand pick the appraiser. The appraiser is assigned through the lender’s approved independent process.

For the financing to proceed at the agreed price, the appraised value must be at least the purchase price. We coordinate access and provide relevant property information and comparable sales when appropriate. The appraiser works independently.

If the appraised value is at or above the purchase price, the appraisal and value are generally shared only with the lender and the buyer or buyer’s agent. As the listing agent, we are typically told only that the appraised value is satisfactory. We or the seller are generally told the value only when it is below the purchase price.

🔧 Appraisal-Required Repairs

An appraisal may identify repairs that the lender or loan program requires before financing can be approved. These are different from repairs requested after a home inspection. The buyer and seller cannot simply waive a lender-required repair while continuing with the same financing.

You still decide whether you are willing to complete the required work. If the repairs are not completed or another solution acceptable to the lender is not reached, the buyer’s financing may be denied and the contract may fall through. We explain the requirement, help gather estimates when appropriate, and carry out the decision you make.

📉 If the Appraisal Is Low

A low appraisal does not automatically end the transaction, but it may require decisions. Depending on the contract and financing, the parties may renegotiate the price, the buyer may bring additional funds, or the buyer or buyer’s agent may exercise a contractual right.

We explain the written terms, communicate with the buyer or buyer’s agent, and negotiate according to your instructions.

🔑 Title Work

The title or closing professional researches ownership, liens, judgments, taxes, legal descriptions, and other matters that may affect transfer. You may be asked for payoff information, prior closing documents, estate or divorce records, entity documents, surveys, or other items.

Responding promptly helps prevent delays. We coordinate with the closing professional and help you understand what is being requested, while attorneys and title professionals handle legal title questions.