Another home sale question

So the buyers are getting their inspection tomorrow but they have already ordered the appraisal. If they decide not to buy the house based on tomorrow findings we arent required to reimburse them for appraisal right?

Re: Another home sale question

No - the buyer always pays for the appraisal. For that reason, most buyers want to wait until they are in contract to have an appraisal done. So they are doing it early at their own risk.

If something comes up at the inspection, or for any reason, and you don't go to contract, you would not have to reimburse them.

It's just like with the home inspection itself. The buyers are paying for that (and it's typically $500-$600). If you should decide not to sell, or if a better offer came along, and you hadn't yet signed the contract, you could back out with no repercussions. You would not have any legal obligation to reimburse them for their inspection costs. In that case, though, most sellers would agree to reimburse to "do the right thing."

I usually tell my buyers to hold off on the appraisal until we are in contract. I mean, a week isn't going to make a difference one way or the other in terms of the timeline to close. So even on "rush deals" it's very rare to do an appraisal before you are under contract.

Typically, a bank won't start processing a loan application until they receive a copy of a fully executed contract. The appraisal is usually done within 2-3 weeks of going to contract, and it varies. But that's usually how it goes.

But again, if the buyers want to have the appraisal done earlier, it's on them to pay for it.

Re: Another home sale question

Thank you!