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What are buyer's rights in terms of getting multiple appraisals?

I'm about to purchase a condo and I'm working with three mortgage lenders right now. For multiple reasons, I'm ok with spending around $500/ea appraisal, but does the seller have any rights based on the standard CAR purchase docs to say only one appraisal is enough? Or do I have the right to request 3 appraisals as long as I am paying for them in full.

Worth noting that I'm not making this purchase contingent on the appraisal value, so it will have very little impact on the seller other than the time it takes to open up the unit to 3 people.

Thanks! 
  • December 12 2013 - Los Angeles
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Answers (11)

3 Lenders and 3 different appraisals is too much work and unnecessary.  Why not work with a mortgage
broker who can 'shop' your scenario to 3 different funding sources?

Those funding sources would be Fannie Mae, Freddie Mac, or a Portfolio lender such as Fremont Bank.

Portfolio Lenders do not use Fannie or Freddie guidelines to make decisions but use their own rules instead.  The drawback is that typically you'll need 20% down or more and they may not offer a 30 yr fixed mortgage....

As for what value of which appraisal the seller will be interested in - that is not their choice.  The lender will review the appraisal that is submitted to them and determine if it is legitimate.  90% of the time or more, in my opinion, the appraisal is taken 'as is'.

The appraisers today are highly regulated and 'by the book' as compared to 6-8 years ago... 

*note on Litigation - a good loan officer or sales manager will review the lawsuit to see the depth and scope of the problems of defects and should give you a good idea of whether the loan would be approved.

Better yet - why not talk to recent buyers and see where they got their loans from?  Realtors who have sold here already should be able to assist as well.
  • December 13 2013
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It is extremely difficult to get a lender to finance a condo purchase when the HOA is in litigation. The only time you have a chance of this, in my experience, is when the buyer has a very large down payment and even then it is not a sure thing.
  • December 12 2013
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Wow. Well, yeah. You are making this purchase subject to obtaining financing, so I see why you're shopping around. This is the first time I've come across your solution, and I am interested in how the story ends. Please keep us posted.
  • December 12 2013
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If anybody wants to buy property in the Portland area, you should find a Realtor that you like and want to use to represent you.   THEN you should contact David Triol to show you homes until you find one that you like. It may take months and David may spend a lot of time and gas money driving you around, but that's part of his job.   Once you are ready to write an offer, contact the first agent and have them handle the rest.

Sound like a side plan DAVID?

You may not know this, but when a lender locks and then has to cancel that lock (Because the borrower switched companies) the original lender will get in "trouble" for breaking the lock with their investor. If it happens too much, the investor can actually terminate the relationship or put them in a lower tier where they don't get the best rates or pricing. Maybe you are so high and mighty that you don't give a crap about loan officers and don't mind wasting their time. But that is bad business practices and does nothing to help form a mutually beneficial Realtor / Lender relationship. 

If you have such a distrust of lenders. maybe you should consider a different occupation.


 
  • December 12 2013
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Thanks for the responses! 

The condo complex is suing the builder for defects (I guess this is common for a complex that has been around for less than 10 years). All three lenders agree that it is 50/50 whether or not their company will fund the loan so they are fine being one of three as long as I pay for the appraisal.
  • December 12 2013
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I wish you would post the results of getting three different appraisers to do one house. It is something I have often wished to see the results of but I was never willing to throw away $1200 to find out how close (or not) they were to each other. Let us know since you must be loaded and willing to throw money away. I would be curious to know.

tim
  • December 12 2013
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Why do you need 3 lenders? You are wasting your lenders' time and wasting your money on appraisals.
  • December 12 2013
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WHY do you want to do this?
  • December 12 2013
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I believe it is wise to have at least 2 lenders..    They don't charge fees to lock in the rates.   So if rates go down you lock in with lender #2........see if lender #1 will match it.

Your not buying the house for the lender......it's all about the best deal for you.

And it is all fabrication when a lender says  " if you goet your credit pulled too many times your credit score goes down.  You have 2 months to get the best deal.

See if the Lender will order the appraisel.....If the lender doesn't have paperwork to put you on the hook for the appraisal.   Then they eat the cost.
  • December 12 2013
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If you are working with 3 lenders and you are submitting a formal loan application, you will have to have 3 appraisals. None of this should concern the seller.

It may be a concern to the lenders of course. Why are you working with 3 of them, rather than interviewing 3 and then committing to the one that can provide the financing that best suits you? Are you being up front with the lenders and letting each know they only have a 1 in 3 chance of getting your business?
  • December 12 2013
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I don't think a seller has any say in any appraisal since it is a requirement of your lender and you pay for it. Why you have 3 going is my question.


tim
  • December 12 2013
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