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ANTICIPATORY BREACH: robwilliams7/22/21: Anticipatory breach and/or failure to deliver notice of inability to obtain loan approval without prior to document conditions based on lender's statements to listing agent on Monday, July 12th, that Buyers' loan, as set forth in the PQF and subsequent LSUs, has been or will be denied.
ANTICIPATORY BREACH: See articles in doc’s tab. Arizona law defines anticipatory breach as a “positive and unequivocal manifestation on the part of the party allegedly repudiating that he or she will not render the promised performance when the time fixed for it in the contract arrives.” See Kleeb v. Burns, 5 Ariz.App. 566, 568, 429 P.2d 453, 455 (App. 1967). A “positive and unequivocal manifestation is required.” Therefore, an expression of doubt is insufficient. Q: In order to constitute an anticipatory breach, must the manifestation of intent not to perform be in writing? No. A verbal representation can constitute anticipatory breach provided that it is clear and unambiguous. As a practice tip, it may nonetheless be beneficial to confirm in writing the manifestation not to perform which was previously conveyed verbally. NOTE: Arizona Court of Appeals to address anticipatory breach, stating as follows, “While a contract generally cannot be breached until the date of the performance, if one party unequivocally indicates he will not perform when the date arrives, he has committed an anticipatory breach.”
ANTICIPATORY BREACH, LANGUAGE FOR CURE NOTICE: ANTICIPATORY BREACH: “Buyer has verbally indicated (or indicated in writing, see attached) they will not close escrow as schedulced on xx/xx/xxxx. Therefore, as allowed by law, seller hereby issues this CURE notice for anticipatory breach as evidenced by buyers representation that they will not perform and the buyers expected failure to close escrow as per the terms of the purchase contract.” NOTE: Attach Article from legal hotline. NOTE: Q: Can a party cure their anticipatory breach? A: Yes. Should a party wish to cure their anticipatory breach upon receipt of a Cure Period Notice they can do so by: (i) performing; or (ii) reassuring the other party of their intent to perform as required by the Contract. ANTICIPATORY BREACH: Buyer has not listed their contingent property for sale: ADAMJERA2/4/2020: Here is the language we discussed, Basically what we are saying is we don’t think they are going to perform based on their actions and failure to list the contingent property for sale. I think to resolve this they would reply in the affirmative that they will perform under the terms of the contract. Also, this is a complicated argument, they may come back and say it doesn’t matter, they have until March to go under contract since that’s the date written in the Buyer Contingency Addendum. ANTICIPATORY BREACH: “As of (todays date xx/xx/xxxx) contingent buyer still has not listed their contingent property for sale. This is a requirement in order to be able to perform under the terms of the purchase contract dated xx/xx/xxxx for the property located at (property address 123 Main St). Therefore, this cure notice is being sent as it is now anticipated that the contingent buyer will not be able to perform due to not having their contingent property actively listed or available for sale. ANTICIPATORY BREACH: ADAMxJERA 2/2/2020: Here is the language we discussed, Basically what we are saying is we don’t think they are going to perform based on their actions and failure to list the contingent property for sale. I think to resolve this they would reply in the affirmative that they will perform under the terms of the contract. Also, this is a complicated argument, they may come back and say it doesn’t matter, they have until March to go under contract since that’s the date written in the Buyer Contingency Addendum. ANTICIPATORY BREACH: “As of (todays date xx/xx/xxxx) contingent buyer still has not listed their contingent property for sale. This is a requirement in order to be able to perform under the terms of the purchase contract dated xx/xx/xxxx for the property located at (property address 123 Main St). Therefore, this cure notice is being sent as it is now anticipated that the contingent buyer will not be able to perform due to not having their contingent property actively listed or available for sale. ANTICIPATORY BREACH: CURE NOTICE LANGUAGE: “Sellers anticipatory breach of contract as seller is unable to (deliver clear title, or whatever the breach is) as promised in the purchase contract.” ANTITRUST: https://www.ftc.gov/tips-advice/competition-guidance/guide-antitrust-laws/antitrust-laws I'm sorry, but I can't approve the back side for publication. As you may know, the Dept of RE insists that any broker advertisements are not confusing or misleading to the public. In addition, the Sherman Antitrust act states that commissions are negotiable. According to the MLS listing for this property, we're offering a 3% co-broke fee, which means we must have a 4.5% commitment from the Owner in the listing contract if you agreed to 1.5% on the listing side of the deal. That's a 4.5% listing, not a 1.5% listing. Please revise and resubmit. Thanks for your time and cooperation. ANTITRUST…? BULLSHIT, NO. MY ANSWER: Q: Would a Rider be allowed that says: "4% Listings" A: No, for many reasons including that would not reflect well on either you or HomeSmart. We all know that commissions are negotiable, and we don't want consumers or the general public to be led in any way to believe this is "HomeSmarts Policy" or "HomeSmarts Program" and that is exactly what will happen based on past experience. So, you can certainly present your individual program one-on-one to your seller clients, but we never want to give any impression to the general public or consumers that HomeSmart has some set or fixed fee. ANTITRUST: 72 SOLD; At the end of the day if it could be proven that HagXue was somehow shutting out competition by 1) monopolizing the showings and 2) to the detriment of seller and/or buyers, that would be an anti-trust violation and the state's attorney general's office would investigate that. Of course ADRE would be involved as well since their mission is to protect the consumer. But the burden of proof is on the plaintiff and that would be hard to prove. APPRAISAL: EMERGENCY LANGUAGE CHANGE, TALKED WITH COURTNEY AT LEGAL HOTLINE ON 2/19/2021, PHONES BLOWING UP! SENT NOTE TO EQUITABLE FOR FEEDBACK...RECEIVE? QUOTES FROM LEGAL HOTLINE: Possible differing opinions from legal, title, brokers, etc. Purchase price is a material term of the purchase contract and must be changed on an addendum, ie, paying over appraisal so change in purchase price if x & y must be memorialized on an addendum (in writing to reduce the likelihood of problems arising at a later date) vs just saying “BUYER AGREES. Always need an addendum anytime price is changed as this is material. NOTE: Be specific about what BUYER will do and about what SELLER will do ie, FLOOR AND CEILING...ie, Seller and Buyer Acknowledge and Agree to the following additional terms and conditions which may modify the selling price agreed to by the parties on line #10 of this purchase contract. Seller and Buyer agree that the sales price will be adjusted to $X above the appraised value up to the sales price of $Y. The parties further agree to execute an addendum reflecting any new, adjusted sales price if required by these terms and conditions. (To protect our seller, say however, should the appraisal come in below $X seller can immediately cancel this contract and EM shall be refunded to he buyer). From Marcie: This is the verbiage I use when agents insist on adding appraisal contingencies to the offer; I feel this covers both the buyer and seller. Thoughts? "Buyer agrees to pay up to XX over the appraisal value up to the sales price agreed upon in the Purchase Contract. Seller is not obligated to sell the home for less than the sales price agreed upon in the Purchase Contract." MISC: "Buyer and seller agree that the sales price shall be adjusted to $5K above the appraised value up to a maximum of the sales price of $X and the parties further agree to execute an addendum reflecting any new, adjusted sales price if required by these terms and conditions." APPRAISAL, IMPORTANT NOTES: Agents should use the ADDITIONAL CLAUSE ADDENDUM to waive the appraisal when getting a loan/financing, or include the appraisal if a cash transaction. Also, from Trudy’s quick code note: FYI - please be very careful about including language in the contract that might indicate you have concerns about the home appraising. The lender will receive a copy of the contract and this may be a huge red flag to the appraiser. It is best to leave language about the home appraising out of the contract. APPRAISAL, ADDITIONAL APPRAISAL REQUIRED BY LENDER: “If an additional appraisal is required by the lender, and said appraisal comes in lower than agreed to sales price, buyer agrees to make up any difference required by lender.” APPRAISAL MANAGEMENT COMPANY (AMC), WHO ORDERS APPRAISAL, LENDER? https://www.nar.realtor/appraisal/nar-issue-brief-appraisal-management-company-qa APPRAISAL, COMPLETE DURING INSPECTION PERIOD: Q; What happens (or should happen) if the parties agree the appraisal will be completed during the inspection period, and it isn't...? Does the 5 day appraisal timeline start automatically at that point in time? Would seller issue a cure notice for that? (YES...terms of the contract not met) A; Appraisal to be ordered and completed during the inspection period or the appraisal contingency shall be considered/deemed waived by the buyer. In other words, include the remedy in the provision vs relying on the cure period notice if it doesn't happen. APPRAISAL: AUTOMATED VALUATON (ALSO SEE WAIVER OF APPRAISAL, OR RAPID VALUE APPRAISAL): ***Addendum not required, but you could use the following language: “Buyer has accepted the lenders automated valuation method in lieu of a full appraisal. All parties agree that the full purchase price will be $X.” APPRAISAL: CONDITIONS: For example, an FHA or VA appraisal may be conditioned on additional repairs being completed. Use an Addendum: “Seller agrees to complete the following additional repairs to satisfy the (FHA or VA) Appraisal Conditions: List ____ ____ ____ Both parties sign off. APPRAISAL: CONDITIONS, LANGUAGE TO USE WITH BINSR…? Seller agrees to credit buyer X$ at closing in lieu of repairs. If appraisal conditions come back requiring repairs, repair costs will be deducted from the sellers credit to buyer.” APPRAISAL, CONTEST APPRAISAL: Q: HOW TO CONTEST? Steps to contest an appraisal: 1) The first step in the process of contesting an appraisal is to convince the lender that the appraisal is flawed or contains errors. For example, comps used are not the best available, failure to give value to features (ie, pool, upgrades, etc), the appraisal states no upgrades in 14 years, yet seller has receipts showing $10K in upgrades, etc., 2) Be aware that is very difficult unless there are obvious errors or mistakes, 3) Call the lender and voice your concerns and see what they have to say and what their thoughts are, 4) Be prepared to point out the factual mistakes and provide more reliable data, ie, better comparables, upgrades/cost documentation, etc, (have those ready to submit to the lender for consideration), 5) It is the buyer's choice to continue with the sale if the appraisal comes in low, typically they will ask the seller to reduce the sales price to the appraised value. An FHA appraisal will stick with the property for 120 days, VA for 180 days so keep that in mind as well. Bottom line is that contesting the appraisal is difficult, you are saying the appraiser made mistakes. And you need to point out those specific mistakes to the lender. Worth a shot, but be ready to back up your challenge with facts and data to support your position. CASE STUDY: Now the Appraisal came in $4000 short. The seller put $8600 in upgrades in the condo and was given zero for upgrades even when provided the invoices and receipts. My seller spent 5 weeks working from California with the contractor here to update the property, which was needed. My question is if the buyer is not willing to pay the $4000 difference and the seller will not come down $4000 (and does not close escrow) and we put it back to Active Status, my seller is asking if the appraisal be put in the system for future appraisers to see? I don't believe there's any database for past appraisals other than for FHA loans. An FHA appraisal sticks with a property for 6 months, but that's not true for conventional loans, so if it was conventional I don't think you'll have a problem. Also, just an FYI, the Buyer only has 5 days to decide if they want to move forward or cancel from the day they received the appraisal information. If they go past that 5 days, and then try to cancel based on the appraised value, they would be putting their EM in jeopardy. KF The lender is contesting the appraisal with information I provided to him. I assume we have to wait on the response from the Appraiser? It consisted of $8600 of upgrades the seller had done, but the Appraiser stated there were “no updates in the 14 years” the seller owned the property. Judy Technically the appraisal contingency doesn't automatically extend for the review of the appraisal. If you were on a Buyer side, I would say you need an addendum signed by the parties extending the appraisal contingency. I sent the upgrades & receipts a second time to the appraiser and he adjusted the price up to the purchase price. I really appreciate your help and direction. Yeah Team. Well done Judy! It's rare that they actually change it, so it's good to hear that it does happen sometimes :) I shared with the seller that exact statement when the Appraisal issue occurred. I have found that is correct from my experience. Very surprised, but he did not consider the upgrades so it worked. So happy! Appreciate the advice as to the number of days buyer has to make decision and otherwise an addendum would be needed to extend the time. APPRAISAL: CONTINGENCY STILL VALID ON CASH TRANSACTION: “Appraisal Contingency on page x, line #x of this PC to still be valid if Buyer elects to have property appraised. If Appraisal is ordered, it is to be completed during the Inspection Period.” APPRAISAL, DESK TOP APPRAISAL: A desktop appraisal is an appraisal that is done at a desk, without leaving the desk. There's no interior inspection, no exterior inspection, and no measuring. Nothing is done in person. Desktop appraisals use the data available to the appraiser via third-party resources. (Clients are increasingly requesting appraisers to provide different types of appraisals in lieu of the traditional “full” appraisal. There are many different types of these non-traditional assignments, including evaluations, desktop appraisals, appraiser-assisted AVMs, and others. These types of assignments are sometimes called limited scope appraisals, because the scope of work for these assignments is usually something less than the traditional “full” appraisal that appraisers are accustomed to completing). See the following website for detailed Q&A on Desk Top Appraisals: https://realvals.com/desktop-appraisals/#:~:text=A%20desktop%20appraisal%20is%20an,appraiser%20via%20third%2Dparty%20resources. APPRAISAL, EXTEND APPRAISAL CONTINGENCY PERIOD, SELLER WANTS TO CHALLENGE APPRAISAL (OR SECOND APPRAISAL) My clients are first time buyers who do not have extra funds to bring in. The seller wants to CHALLENGE THE APPRAISAL and refuses to lower the price. I am wondering what type of paperwork I should complete to protect my clients as this will take them outside the contingency period. Thanks in advance for your help, Bob. HI Bob, I'd do an addendum (and make sure it's fully executed during the contingency period) that states: “Buyer and Seller agree to extend the appraisal contingency time frame to allow for the appraisal to be Contested. In the event the appraisal review does not result in the appraisal amount being increased to at least the purchase price, or the lender gives notice that the appraisal challenge has been denied, the Buyer shall have the right to cancel the contract with a full refund of the earnest money within 48 hours of notification. If appraisal challenge is successful and appraised value comes in at or above purchase price, buyer agrees to waive appraisal contingency and proceed with this transaction”. ‘Buyer and Seller agree to extend the appraisal contingency time frame to allow for a Second Appraisal. In the event the second appraisal does not result in the appraisal amount being increased to at least the purchase price, the Buyer shall have the right to cancel the contract with a full refund of the earnest money within 48 hours of notification. If second appraisal value comes in at or above purchase price, buyer agrees to waive appraisal contingency and proceed with this transaction.” Something along those lines should suffice. KF FHA questions: What is the proper way to notify FHA buyer 2 that a prior FHA APPRAISAL has been completed and is within the 120 day stick period? Counter offer? Addendum? Does buyer #2 have to pay for this prior appraisal? Is the seller wrong to offer FHA if they are listed above the prior FHA appraisal? (they could ask buyer to pay difference out of pocket since the buyer is going to find out). Just trying to be sure how to handle this situation. Thanks, Jeff. Good morning. Has the FHA appraisal already been paid for by the original FHA buyer? Yes it has, the deal fell apart due to the low appraisal, seller did not want to lower price. Are you listing it at the FHA appraised value? No, higher, they are hoping a conventional or cash deal comes in. I would counter any FHA offers stating an FHA appraisal exists at "$x" value and borrower will be required to pay "$y" in cash (if they are offering more than the FHA appraised value). That would hedge off a deal falling apart later on. Jeremy House APPRAISAL, FORGOT:WHAT IF YOU FORGOT TO USE THE APPRAISAL CONTINGENCY WITH YOUR CASH OFFER? You can still cancel on Due Diligence, sect 6a, line #215, determining value is included in inspection! APPRAISAL, ISSUES OR POSSIBLE ISSUES: FYI - Please be very careful about including language in the contract that might indicate you have concerns about the home appraising. The lender will receive a copy of the contract and this may be a huge RED FLAG to the appraiser. It is best to leave language about the home appraising out of the contract. It is best to address the appraisal at the appropriate time as per the boiler plate language in sect 2l of the AAR Residential Purchase Contract. TM, 6/3/2019 APPRAISAL, LOW APPRAISAL, WHAT NEXT? Hi x, Is there any language in your contract that says your buyer will pay $X above appraised value, or anything like that? If not, then the buyer has several options as per the appraisal contingency in sect 2l of the purchase contract. NOTE: Buyer has five (5) days from notice of appraised value to either: 1) Cancel the contract using the appraisal contingency notice (see screenshot box #1), 2) Move forward with the contract even though the appraisal came in below sales price (see screenshot box #2) or 3) Negotiate with the seller to reduce the price to the appraised value or somewhere in the middle if the parties agree to that...you would prepare an addendum with the new sales price. APPRAISAL, LOW, CONCESSIONS, BUYER MAINTAIN CONCESSIONS IF CONCERNED ABOUT POSSIBLE LOW APPRAISAL LANGUAGE: Seller and Buyer agree that if the home fails to appraise, any buyer requested reduction in the sales price as a result of the appraisal will be not be offset by a corresponding decrease in seller concessions. APPRAISAL, LOW, CONCESSIONS: SELLER REDUCE CONCESSIONS IF CONCERNED ABOUT POSSIBLE LOW APPRAISAL LANGUAGE: Seller and Buyer agree that if the home fails to appraise, any buyer requested reduction in the sales price as a result of the appraisal will be offset by a corresponding decrease in seller concessions. APPRAISAL, LOW, EXISTING LOWER APPRAISAL, BUYER AGREES TO MAKE UP THE DIFFERENCE LANGUAGE Appraisal exists at $x. Should the property fail to Appraise for at least the contract sales price, Buyer agrees to proceed with this transaction and further agrees to pay any difference between the sales price and the appraised value as required by the lender.
APPRAISAL LOW ON VA, FHA, CONVENTIONAL LOAN, BUYER PAY DIFFERENCE (override amendatory clause): YOU CANNOT OVERRIDE THE AMENDATORY CLAUSE “All parties are aware that the (LOAN TYPE) Appraised Value is $xx, and the Sales Price is $yy. Seller and Buyer Acknowledge and Agree that Buyer will pay the Purchase Contract Sales Price of $yy and that the Buyer will pay the difference required by lender of $zz at closing to meet the Contract Sales Price.” APPRAISAL, LOW APPRAISAL, PAY $1000 ABOVE APPRAISED VALUE LANGUAGE: “In the event that the Premises fails to appraise for the purchase price in any appraisal required by lender, buyer agrees to pay up to $1,000.00 above the appraised value, to a maximum of the purchase price on line 8.” APPRAISAL: LOW, PAY $X ABOVE APPRAISED VALUE: (FROM MAXINE): If appraisal comes in at or above $649,500, buyer agrees to pay the difference, up to $30,000, up to but not more than the contract sales price of $679,500. If the premises fails to appraise for $649,500 or higher, the buyer has five (5) days after notice of appraised value to cancel this contract and receive a refund of the Earnest Money, or renegotiating with the seller the purchase price of the home, or the appraisal contingency shall be waived and considered satisfied, unless otherwise prohibited by federal law. APPRAISAL, LOW, PRICE REDUCED DUE TO LOW APPRAISAL LANGUAGE Sales price to be reduced to the appraised value of $x...or...Buyer and Seller agree to a reduced sales price of $x….or…Seller and Buyer hereby agree to amend the purchase price to reflect the appraised value of $x.”
APPRAISAL: PAY $10K OVER APPRAISAL: 11/16/2020: USED WITH ERINXRESINGER, GOOD USE OF CEILING & FLOOR TO PROTECT SELLER: “Sales price shall be $457,000. Buyers agree to pay $10,000 over the appraised value up to the sales price of $457,000. Should the appraisal come in below $435,000 seller, at her sole option, shall have the right to unilaterally cancel this contract within 48 hours of notification with earnest money refunded to the buyer. Buyer agrees to provide seller a copy of the appraisal immediately upon buyers receipt..”
APPRAISAL: PAY $10k OVER APPRAISAL: The Buyer agrees to pay $10,000 over the appraised value of the property, up to a maximum purchase price of the current sales price of $300,000. That means if the appraisal comes in at $290,000 or above, the sales price will remain $300,000, with the Buyer making up the difference between the appraised value and the sales price in cash to close this escrow. If the appraisal comes in for less than $290,000, the parties agree to lower the final sales price to the appraised value plus $10,000. APPRAISAL, PAY $10K OVER APPRAISAL: Should the property fail to appraise at the sales price, buyer agrees to pay up to an additional $10K over the appraised value.” APPRAISAL IS AN OPINION OF VALUE: If I get an appraisal of a listing prior to listing to I have to disclose the appraisal information in MLS? No, an appraisal is an opinion of value and there is no legal obligation to disclose it. See section 5b, line #201 of the purchase contract. APPRAISAL: PROOF OF APPRAISAL: “Proof of appraisal order to be provided by xx/xx/xxxx in the form of a receipt or screenshot.” APPRAISAL, RAISE LIST PRICE TO MATCH OVER ASKING OFFER TO SUPPORT VALUE FOR APPRAISER…? LAURIEXMcD response, 10/22/2020: I appraised RE for 15 years. I can assure you that changing the list price does nothing. It is clear and obvious the price changed after offers submitted/accepted. Listing agent should be able to clearly support value by providing showing history, all offers received redacting personal information etc. APPRAISAL: RAPID VALUE APPRAISAL...SEE WAIVER BELOW, ALSO AUTOMATED VALUATION FOR LANGUAGE. APPRAISAL: Seller offers to lower price: Q:What if Appraisal comes in low, seller proactively offers to lower price? Can buyer still walk? A: YES. No written agreement between the parties. APPRAISAL, SHARING, MUST BUYER GIVE A COPY TO THE SELLER? Q: The listing agent put in the counter offer that the seller wants the buyer to supply the appraisal to the seller upon request. The buyer is paying for the appraisal. Must the buyer give the seller the appraisal? We are concerned that the seller will not complete repairs and may try to cancel the transaction. A: There is no provision in the pc that says the buyer shall furnish the seller with a copy of the appraisal. That being said, if the buyer agrees, then the buyer will be obligated to provide a copy of the appraisal to the seller. Otherwise, the buyer just needs to disclose that the appraisal “came in at value.” APPRAISAL, SHARING, WHEN IS IT COMMUNICATED TO THE BUYER? Q: In my experience, there's often no indication from a buyer's lender that an appraisal result has been communicated to the buyer. Short of calling the lender to find out if they've provided the appraisal results to the buyer, is there a way to solidify the date that starts the contingency clock for the buyer? A: You're right Jon, and the answer really is no. Other than doing what you described and calling the lender, there's no definitive way for you to know that exact day. KF APPRAISAL: SHOULD I ORDER AN APPRAISAL FOR MY LISTING? Q: I've taken a look at some of the comps in the area but the homes that sold are updated and its hard to compare this property with others because of the condition it is in. Would you recommend that she get an appraisal before she lists to have an idea of where to price this type of property? A: Yes, a paid appraisal would be beneficial in any situation where the agent has a difficult time assigning a value to the property. It can also be a nice tool to use for marketing and advertising purposes as well in order to justify the asking and/or sales price… APPRAISAL, WAIVER: RAPID VALUE APPRAISAL, APPRAISAL WAIVER: Make sure your buyer approves. GET IT IN WRITING! AUTOMATED VALUATION Appraisal WAIVERS: Fannie Mae has also expanded the availability of appraisal waivers, to be used for both home conventional home purchase loans and refinance loans. Everything starts with Fannie Mae's desktop underwriting system, which analyzes data on properties and will now potentially issue a waiver of appraisals on the following type of transactions: 1) Home purchase loans for primary and secondary homes with a minimum 20% down payment. 2) Rate and term home refinance loans up to 90% loan to value on primary and secondary homes and 75% on investment property homes. 3) Cash out refinance loans up to 70% loan to value on primary homes and 60% on secondary and investment property homes. The waivers are not guaranteed, but are definitely being issued on many transactions that meet these qualifications currently and will continue to grow as Fannie Mae continues to expand its database of appraisal numbers. As always everyone's individual situation is unique and it is always best to speak with a licensed lender to explore all available home loan options, for your specific situation.
APPRAISAL, WAIVE APPRAISAL: You can include this language if your sellers are ok with it...anytime we start to use an escalation clause, there is always a chance of having the price "bid up" to the point where the appraisal might become a concern. This language resolves that. “Buyer(s) agree to waive the appraisal contingency. Should the property fail to appraise for at least the contract sales price, Buyer(s) agree to pay any difference between the contract sales price and the appraised value as required by their lender.” APPRAISAL: Q: I have a client that really-really likes this property in “Estrella Mountain” and the asking price is about $289k. The husband of my client told the wife hey maybe we should just offer up $300k to make sure we win this property. I wanted to get a brokers opinion on this because I’ve personally never had an offer this much above asking price. Is it normal, is that a little too high, or on a home in that area which is pretty desirable and under $300k goes so fast is this somewhat viewed as being acceptable? Before I have them sign and send the full offer to listing agent I definitely wanted to run this by a broker. Thanks in advance, A: When you offer above asking price, you run the risk of the property not appraising.......the biggest issue if there's a loan involved. You will need to take a close look at the comps and the amenities this property has to make sure that kind of offer makes any sense and advise your clients accordingly. APPRAISAL, WAIVED, CAN BUYER STILL DETERMINE THE VALUE?: ***Q: How can I protect my seller if the buyer waives the appraisal? Can the buyer still cancel if the appraisal comes in below contract sales price? A: To remove the appraisal completely, you would also need to remove the language “Determine the Value” from line #215 in the Due Diligence Section (sect 6a) of the pc. Language such as: “The specific phrase or language “Determine the Value” is hereby stricken (or removed or deleted) from line #215 of this purchase contract. Buyer acknowledges that in addition to waiving the appraisal contingency and contrary to any language otherwise, Buyer further agrees to proceed with this transaction regardless of any determination of value noted in sect 6a or anywhere else throughout this pc or any related documents or addendums.” APPRAISER: WHO LETS THEM IN THE HOUSE? The primary contact person for the appraisal is the listing agent. You should provide comps and a list of upgrades/improvements to support the list price or sale price. APPRAISER: GEOGRAPHICAL KNOWLEDGE: Make sure the Appraiser has the geographical knowledge (local market expert). APPRAISER: HIRING YOUR OWN APPRAISER, WHO PAYS? FEDERAL RESERVE GUIDELINES, What is sale falls through? http://homeguides.sfgate.com/can-hire-own-appraiser-home-loan-72271.html APPRAISER: REFERRALS: 1) Josephs Appraisal Group, Jay Josephs, 602-955-4050 https://www.josephsappraisalgroup.com/ContactUs 2) An appraisal from Wolf Appraisal Service, PLLC as part of your overall marketing strategy will give the ultimate credibility to your asking price. You'll have fewer hassles with offers and counter offers, and your sellers will be confident you're getting top dollar for the home. We're ready to help with quality reports, excellent client service and fast turn-around times. Please visit my website at www.wolfappraisalservice.com or give me a call at (480) 659-8233. Earl Wolf, Certified Residential Real Estate Appraiser, Wolf Appraisal Service, PLLC (480) 659-8233 earl@wolfappraisalservice.com ARIZONA REGISTRAR OF CONTRACTORS, LICENSING REQUIREMENTS: (GREATER THAN $1000 COST) https://roc.az.gov/license-classifications (Also see registrar of contractors) Plus Recovery Fund. ARIZONA REGISTRAR OF CONTRACTORS: AZROC.gov Bldg Standards: https://documentcloud.adobe.com/link/review/?uri=urn%3Aaaid%3Ascds%3AUS%3A096ba0d8-72ba-4f59-bb6f-0e26f7ec4d64&pageNum=4 ARIZONA RESIDENTIAL LANDLORD AND TENANT ACT: ARLTA; ARIZONA DEPARTMENT OF HOUSING: https://housing.az.gov/general-public/landlord-and-tenant-act ARIZONA SCHOOL OF REAL ESTATE & BUSINESS: Articles, clauses, language: http://www.irealtyschool2.com/newsletter/articles/dCompton/article6.asp ARMS LENGTH TRANSACTION: HAFA SHORT SALE DISCLOSURE/ADDENDUM: (SEE HAFA AFFIDAVIT) If Agent is buying on his/her own behalf, they are not allowed to be paid a commission as per the terms of the HAFA Affidavit which all parties must sign. FYI: This is not an arms length transaction due to the agent being the buyer. If the lien holder sends an arms length transaction form to sign, be sure to get it approved by a broker prior to signing. Be sure you notify the broker that the buyer is also the agent. Thank you. Article 26 Section 1 of the Arizona Constitution: Powers of real estate broker or salesman https://law.justia.com/constitution/arizona/26/1.htm 1. Powers of real estate broker or salesman Section 1. Any person holding a valid license as a real estate broker or a real estate salesman regularly issued by the Arizona State Real Estate Department when acting in such capacity as broker or salesman for the parties, or agent for one of the parties to a sale, exchange, or trade, or the renting and leasing of property, shall have the right to draft or fill out and complete, without charge, any and all instruments incident thereto including, but not limited to, preliminary purchase agreements and earnest money receipts, deeds, mortgages, leases, assignments, releases, contracts for sale of realty, and bills of sale. ASK FORGIVENESS: Grace Hopper. It's easier to ASK (BEG) forgiveness than it is to get permission. Rear Admiral Grace Murray Hopper (12/9/1906 – 1/1/1992) was a U.S. Naval officer, and an early computer programmer. ASSOCIATIONS: WHY JOIN? Without payment to SAAR your membership will lapse and HomeSmart will be forced to sever you with DRE. You can rejoin when it is a better time for you. Another option is to move your license to Smart Referral Network. Monthly/Quarterly dues are $25/$75 and no Association Membership is required (nor allowed). You can't list or sell real estate - strictly a referral agent - but you can receive referral fees. |