I just wanted to see how you feel about this. I have a client that is purchasing a very nice, 3 story condo, one street back from the beach. They are first time buyers and moving here from out of state. We looked at everything, and this was the winner. Priced right and they got a healthy closing cost assistance amount from the seller. We get a call from the lender (they chose them) telling us they have the option to waive their appraisal. I call the clients and explain to them, due to their great credit scores, and the sum they are putting down, their lender is willing to waive the appraisal. This will save about $400 dollars in an appraisal fee (appraisal would have been $450, this way is about $50). However, I tell buyer, this cost has already been included in your closing cost estimate, and should be covered by the CCA provided seller. So why not go ahead and get the appraisal? Then you will know. Yes, we want the appraisal.
I call the lender and tell her the clients want the appraisal. She says, but what if the value doesn't come in? The buyers will have to come up with the difference!! I say, "That is one way to deal with a bad appraisal, the other is the seller will have to meet the appraised amount." And in this market, I want my buyers to have the best information AT THE TIME. Now, of couse I have already done a CMA and I don't see where there is going to be a problem, but I don't want that liability. I feel (and told the lender) that I have to have my buyers best interest in mind and I am advising them to get the appraisal. If there is a problem, we will deal with it.
What do you guys think about this? To appraise or not? I say, my fiduciary duty requires me to do what I would want done. And I would definately want an appraisal.... thoughts?