Since the financing is based on the lesser of (1) the purchase price or (2) the appraised value, an appraisal that results in a value at or above the contract purchase price means the deal remains intact.
Bidding wars, lack of appropriate comps or buyers that perceive value regardless of the appraisal, may or may not result in a renegotiation of the sales price.
But the college would have to value the gift using an IRS-approved appraisal, which is typically lower than book value and vastly lower than the valuation you'd get on a frothy Nasdaq.
Lenders are happy when the appraisal delivers a value at or greater than the contract purchase price.
Actually, lenders could care less what the property appraises for, it is the loan officer (me) and the real estate agent, Larry who care (a great deal) what the value result is from the appraisal.
When an appraisal results in a value that is less than what the buyer and seller agreed to, several issues begin to swirl into a potential funnel cloud.
That same agreement also gives Mr. Scott and his related family interests the right to put their shares to the Corporation at fair market value to be determined by independent appraisal if the sellers do not agree with the price offered by the Corporation, and payable in Berkshire shares.
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Large sculptural meteorites remain in high demand, their value determined less by scientific than artistic appraisal.
The primary reason that an appraisal will result in a value that is less than the sales price is comps.
Obtain an independent appraisal of the fair market value of the residence.
An appraisal that results in a value that is less than the contract purchase price can potentially mean all kinds of woe for the loan officer (me) and the real estate agent.
But there are well established appraisal methods to measure the present value of future benefits through capitalized income streams.
Because the appraisal didn't lower his loan-to-value ratio, and despite his high credit score, Mr. Lattas says he's going to end up with a mortgage rate that's a quarter of a point more expensive than the lowest rates available.
The easements are valued by taking the present value of the land, as is, and contrasting that with an appraisal of the land if it were fully developed.
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With private jumbo mortgages, if the appraisal indicates that the borrower's loan amount is more than 80% of the value of the home, the borrower will likely have to put more money down if he wants to proceed.
Occasionally homeowners will ask for a second appraisal, the mayor said, and the city has ultimately negotiated what the owners consider "fair value" with enough time in advance to relocate.
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