Special offer

Funny How the Appraiser Calls AFTER the Home Inspection

By
Real Estate Agent with Long and Foster Real Estate VA License # 0225089470

Funny How the Appraiser Calls AFTER the Home Inspection

One of my pet peeves, as a top producing Bristow Real Estate Agent, is how deadlines are handled by buyer agents on my listings.  Let's start with the fact that all deadlines in our contract, unless specified otherwise in writing, run the date of final acceptance and delivery to all parties.  We call that the date of ratification.  Home inspections are usually given ten days max and a seven day max negotiation period, followed by a day or two right to void.  Meanwhile appraisal contingencies are about twenty-one to twenty-four days.  And in my experience, it takes about a week from teh time the appraiser has been at the property to turn in the appraisal to the buyer's lender.

Knowing these fact, you would think that buyer agents would advise their clients to schedule the home inspection and appraisal ASAP.  Yet, time and again, I am dumbfounded when miraculously, I won't hear from an appraiser until after the home inspection and any repairs have been negotiated.  If a buyer has a twenty-one day appraisal contingency, they are putting your appraiser in quite a pickle to get the job done.  But ultimately, they are putting themselves in a pickle as all deadlines fall on the buyer's head.

Imagine how much smoother home inspection negotiations might go with a seller if they weren't worrying about what was around the corner at the appraisal?  I represented a Bristow seller recently where appraisal was a major concern for both parties.  Naturally, the appraisal order was delayed, but not until the very end.  Just until after the inspection.  By that point in time, the buyer and seller were in tough negotiations.  Buyers wanted their last chance at getting repair money, which they felt they deserved for paying so much for the home.  Well, that "paying so much for the home," was yet to be determined.  The appraisal came in when the seller finally made a counter tying any repair credit to the home appraising for sales price.  I'm still not sure how that upset the buyers, as their entire argument was how much they were paying for the home.

The argument buyers and their agents will use is that buyers don't want to be out money ordered for an appraisal if the deal falls through on home inspection.  Let me just say, if that is a legitimate concern, based on a poor condition of the property, write a much longer time frame for appraisal.  Otherwise, know that the inspection deadline being over doesn't kick off the beginning of the appraisal contingency.  These run concurrently.  And if you are a serious buyer, you should pay for all of them up front.

My seller clients are going to be getting some pro tips on how to deal with this approach to deadlines when they negotiate their purchase offers.  It's a poor business tactic and leaves too many unanswered questions at a time when both parties deserve the most information they can have.  

Comments(7)

William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

I don't have a lot of issues like this...unless it is an agent from out of the area

Apr 21, 2018 05:11 PM
Chris Ann Cleland

William Feela --It's become an unofficial business practice in our area and the agents advising it have no clue how much trouble it causes.  That's probably because they have never represented a seller.

Apr 22, 2018 07:17 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

There are times, Chris Ann, when I suggest to my clients they first get an appraisal back before spending money on an inspection in the event the home does not appraise and the seller wont work with us on the purchase price. But I can't remember suggesting they order inspections before an appraisal.

Apr 22, 2018 05:52 AM
Chris Ann Cleland

Nina Hollander --I think our customary inspection periods are a lot shorter than yours, which would probably explain why the reverse happens from time to time in your market.

Apr 22, 2018 07:18 AM
Elizabeth Weintraub Sacramento Broker
Elizabeth Anne Weintraub, Broker - Sacramento, CA
Put 40 years of experience to work for you

We run a similar battle in Sacramento, Chris Ann. Inspections by default are 17 days, whereas appraisal is 21. I often shorten the inspections to 10 days, and I generally insist on AS IS. Nip that strategy in the bud. No renegotiations. Some agents depend on renegotatiations to pull their buyer to closing.

It is very rare for any of my clients to pay a credit nor do a repair for a buyer.

Apr 22, 2018 09:35 AM
Chris Ann Cleland

Elizabeth Weintraub Sacramento Real Estate Agent, Top 1% of Lyon Agents --Wish our buyers out here would go for that.  Doubt it will ever happen.

Apr 23, 2018 12:39 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

I agree with your last paragraph especially, Chris Ann.  It is a poor business tactic. 

Apr 22, 2018 01:40 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

CONGRATULATIONS Chris Ann, on having this blog FEATURED in the Old Farts Club group!    

Apr 22, 2018 01:41 PM
Chris Ann Cleland

Thanks for the feature Myrl Jeffcoat .

Apr 23, 2018 12:40 PM
Anna "Banana" Kruchten
HomeSmart Real Estate - Phoenix, AZ
602-380-4886

Chris Ann why anybody would take such a risk on getting appraisal back according to your contract and on time is odd to say the least and a poor business practice. We have a 10 day inspection similiar to yours. Appraisal is ordered when lender asks for it and they normally work with the agent on this. We normally have appraisals back within 4 or 5 days so it's never been an issue before.

Apr 22, 2018 03:45 PM
Chris Ann Cleland

Anna Banana Kruchten CRB, CRS, Broker --Some agents really don't take deadlines seriously.

Apr 23, 2018 12:40 PM
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Chris Ann

I am constantly amazed at how often agents just don't think things out when these time frames are so important. Also, I have to laugh for I have a bit of a difficulty when I see anyone featured in Myrl's Old Farts Club. It always bring a chuckle, cheers cvc

Apr 23, 2018 09:08 AM