Appraisal

During: Buying Process Overview: Contract to Close: Appraisal

Contract to Close

The following is a visual representation of the Appraisal process when buying homes as a Nomad. It is part of the Contact to Close process that you’d use once you are under contract to buy a property.

contract-to-close-appraisal

  1. Complete "Contract To Close" checklist
  2. Class Watch "Contract to Close" Recording of Live Class
    Watch the recording of the live presentation of "Contract to Close" available on:

    https://RealEstateFinancialPlanner.com/contract-to-close/

    ClassesContract To CloseUltimate Nomad ChecklistWeek 60Week 8

  3. Complete "Contract To Close: General" checklist
  4. Complete "Contract To Close: Title" checklist
  5. Complete "Contract To Close: Owner’s Association" checklist
  6. Complete "Contract To Close: Seller's Property Disclosure" checklist
    Complete the "Contract To Close: Seller's Property Disclosure" checklist:

    https://RealEstateFinancialPlanner.com/sellers-property-disclosure/

    Since the "Seller's Property Disclosure" is often provided even before we write the offer, it is not uncommon that we use "Completed" for the date of this deadline. However, if we have not received the "Seller's Property Disclosure" prior to writing the offer, we often use "MEC + 3 Days" so that you can ideally get a copy of the "Seller's Property Disclosure" prior to your inspection.

    This is especially important since there is not an objection for the "Seller's Property Disclosure"; you'd need to object based on your inspection if you found something at the property that you learned about via the "Seller's Property Disclosure".

    Contract Deadline: Seller's Property Disclosure DeadlineContract To CloseContract To Close: Seller's Property DisclosureSellers Property DisclosureUltimate Nomad ChecklistWeek 13

  7. Complete "Contract To Close: Loan and Credit" checklist
  8. Complete "Contract To Close: Appraisal" checklist
  9. Complete "Contract To Close: Survey" checklist
  10. Complete "Contract To Close: Inspection and Due Diligence" checklist
  11. Complete "Contract To Close: Closing and Possession" checklist

Contract to Close:
Appraisal

And, here is the visual representation of the Appraisal process.

appraisal-nothing-selected

Let’s look at each step in more detail.

Complete "Contract To Close: Appraisal" checklist

Contract To CloseContract To Close: AppraisalUltimate Nomad ChecklistWeek 13

Appraisal Deadline

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The Appraisal Deadline is the deadline for having the appraisal completed.

  1. Complete "Appraisal Deadline" checklist
  2. If you haven't done so already, pay Lender for Appraisal
    If you have not already done so, pay your Lender for Appraisal so they can order it.

    Contract Deadline: Appraisal DeadlineContract Deadline: Loan Application DeadlineFinancingUltimate Nomad ChecklistWeek 9

  3. Authorize Lender to order Appraisal
    Since you're almost always paying for the Appraisal you will need to authorize your Lender to order the Appraisal.

    IMPORTANT NOTE: If you're concerned about what you might find at the inspection and may be terminating your contract on inspection, you should discuss with your Lender and Real Estate Broker delaying your Appraisal so you do not have to pay for an Appraisal on a property you are not going to buy.

    Mark this task complete once you've authorized your Lender to order the appraisal and provided them all the forms and payment information they need to do so.

    Contract Deadline: Appraisal DeadlineFinancingUltimate Nomad ChecklistWeek 9

  4. REAL ESTATE BROKER: Check with Lender to make sure Appraisal has been ordered
    Your Real Estate Broker should be checking in with the Lender to make sure your Lender has ordered the Appraisal.

    Contract Deadline: Appraisal DeadlineFinancingUltimate Nomad ChecklistWeek 9

  5. REAL ESTATE BROKER: Check with Lender and/or Seller's Real Estate Broker to make sure Appraiser has visited property
    Your Real Estate Broker should check with the Lender and/or the Seller's Real Estate Broker to make sure the Appraisal has visited the property to complete their Appraisal.

    This is a proactive step in case it looks like you might not make the Appraisal Deadline and we'd need to negotiate with the Seller to see if we can extend that deadline.

    Contract Deadline: Appraisal DeadlineFinancingUltimate Nomad ChecklistWeek 9

  6. Receive Appraisal from Lender
    Once the Appraisal is complete and has gone through your Lender's underwriting review, they should give you a copy and let you know if the property has appraised for Purchase Price or not.

    Contract Deadline: Appraisal DeadlineFinancingUltimate Nomad ChecklistWeek 9

  7. REAL ESTATE BROKER: Receive Appraisal info from Lender
    Once the Appraisal is complete and has gone through your Lender's underwriting review, your Lender should communicate with your Real Estate Broker to let us know if the property appraised or not.

    While some Buyers send us copies of the Appraisal, Lender typically do not automatically send a copy of your Appraisal to your Real Estate Broker.

    Contract Deadline: Appraisal DeadlineFinancingUltimate Nomad ChecklistWeek 9

Appraisal Objection Deadline

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The Appraisal Objection Deadline is the deadline for the buyer to object based on the appraisal.

  1. Complete "Appraisal Objection Deadline" checklist
  2. Review Appraisal
    When you get the Appraisal from the Lender, review it. If you have questions, discuss it with the Lender and/or your Real Estate Broker.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  3. IF NOT OBJECTING TO APPRAISAL: Continue with purchase
    If the property appraised for at least the Purchase Price or you will make up the difference between what it appraised for and the Purchase Price, you can ignore this deadline and continue with the purchase.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  4. IF OBJECTING TO APPRAISAL: REAL ESTATE BROKER: Prepare "Appraised Value Objection Notice"
    If the property appraised for less than Purchase Price and you want to object to the Appraisal, ask your Real Estate Broker to prepare an "Appraised Value Objection Notice" to protect your Earnest Money.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  5. IF OBJECTING TO APPRAISAL: Sign "Appraised Value Objection Notice" via DocuSign
    If the property appraised for less than Purchase Price and you want to object to the Appraisal sign the "Appraised Value Objection Notice" via DocuSign before the Appraisal Objection Deadline to protect your Earnest Money.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  6. IF OBJECTING TO APPRAISAL: Save "Appraised Value Objection Notice" to Dropbox
    Once you sign the "Appraised Value Objection Notice" via DocuSign save a copy to your property folder in Dropbox.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  7. IF TERMINATING BASED ON APPRAISAL: REAL ESTATE BROKER: Prepare "Notice To Terminate" and "Earnest Money Release"
    If the property appraised for less than Purchase Price and you want to terminate based on Appraisal, ask your Real Estate Broker to prepare a "Notice To Terminate" and "Earnest Money Release" before the Appraisal Objection Deadline to protect your Earnest Money.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  8. IF TERMINATING BASED ON APPRAISAL: Sign "Notice To Terminate" and "Earnest Money Release" via DocuSign
    If the property appraised for less than Purchase Price and you want to terminate based on Appraisal sign the "Notice To Terminate" and "Earnest Money Release" via DocuSign before the Appraisal Objection Deadline to protect your Earnest Money.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

  9. IF TERMINATING BASED ON APPRAISAL: Save "Notice To Terminate" and "Earnest Money Release" to Dropbox
    Once you sign the "Notice To Terminate" and "Earnest Money Release" via DocuSign save a copy of them to your property folder in Dropbox. Once you get them back signed from the Seller, replace your copies with the fully executed copies in your property folder in Dropbox.

    Contract Deadline: Appraisal Objection DeadlineUltimate Nomad ChecklistWeek 13

Appraisal Resolution Deadline

appraisal-appraisal-resolution-deadline

The Appraisal Resolution Deadline is the deadline for buyer and seller to come to an agreement on how to resolve the objection to the appraisal.

  1. Complete "Appraisal Resolution Deadline" checklist
  2. REAL ESTATE BROKER: Negotiate on your behalf regarding Appraisal
    If you've objected to the Appraisal, your Real Estate Broker should negotiate on your behalf to find an acceptable compromise to the property appraising lower than Purchase Price.

    Contract Deadline: Appraisal Resolution DeadlineUltimate Nomad ChecklistWeek 13

  3. IF RESOLVED: REAL ESTATE BROKER: Prepare "Amend/Extend" and withdraw "Appraised Value Objection Notice"
    If you've come to a resolution regarding your Appraisal, then your Real Estate Broker should prepare an "Amend/Extend" to the "Contract to Buy and Sell Real Estate" to document the resolution and prepare your "Appraised Value Objection Notice" to have you withdraw it so your contract does not terminate.

    Contract Deadline: Appraisal Resolution DeadlineUltimate Nomad ChecklistWeek 13

  4. IF RESOLVED: Sign "Amend/Extend" and "Appraised Value Objection Notice" withdrawal via DocuSign
    If you've come to a resolution regarding your Appraisal, then sign the "Amend/Extend" to the "Contract to Buy and Sell Real Estate" to document the resolution and sign the withdrawal section of the "Appraised Value Objection Notice" via DocuSign.

    Contract Deadline: Appraisal Resolution DeadlineUltimate Nomad ChecklistWeek 13

  5. IF RESOLVED: Save "Amend/Extend" and "Appraised Value Objection Notice" withdrawal to Dropbox
    Save the "Amend/Extend" to the "Contract to Buy and Sell Real Estate" and withdrawn "Appraised Value Objection Notice" that you signed via DocuSign to your property folder in Dropbox.

    You'll replace the "Amend/Extend" with the copy signed by both you and the Seller once the Seller signs it.

    Contract Deadline: Appraisal Resolution DeadlineUltimate Nomad ChecklistWeek 13


See the Survey group of Dates and Deadlines.

IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado and is based on the Colorado Real Estate Commission approved Contract to Buy and Sell Real Estate. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.

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