Sunday, March 24, 2013

Appraisal contingency Las Vegas Houses



If you are buying a house in Las Vegas "cash", appraisal shouldn’t be a problem since your offer most likely won’t have appraisal contingencies;
however if you are using any kind of financing when purchasing a home in Las Vegas, the appraisal comes in play. Appraisers are very conservative nowadays, specially after the mortgage crisis we had a few years back nationwide, even though housing prices are going up in Las Vegas Real Estate Market, it is not been reflected in the appraisals, we notice that appraisers are a few months behind the rising prices.

I wanted to touch this topic because if the house doesn’t appraise for what you offer your lender will only let you borrow based on the appraised value of the house for sale, meaning if you offer 200,000 and the appraised value comes back at 185,000 your bank will only consider the 185,000. At this point you will have to come to the table with your down payment based on the 185,000 plus the 15,000 difference on the appraisal or try to negotiate the price down with the seller. This last option may be a tough one in the current real estate market in Las Vegas, where the inventory is so low and prices continue on the rise. 

Via Fullerton Group 

Photo by woodleywonderworks @ flickr

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