Why it’s important to understand the importance of a bank appraisal.
Most if not all banks will require that a Massachusetts licensed appraiser evaluate the value of the Boston condo that you wish to purchase. The theory is that a licensed appraiser will present an unbiased objective value on the condo based on recent sales. the problem is that if the appraiser value is under your asking price the bank may turn you down for the loan, even though you have been approved for the loan amount. In this situation the buyer can do one of three things;. The buyer can bring more money so the loan amount corresponds with the loan amount. Option number two the buyer or his agent can renegotiate with the seller or his representative, and finally he/she could walk away from the deal, if you have an appraisal contingency.
Your appraisal contingency should cover you if the value of the property comes up short (consult with your attorney).
Before purchasing a Boston condo it’s important that you know from the lender about how much time you need for an appraisal contingency.
For more information call Ford Realty at 617-720-5454.
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Updated: January 2018