Fort Hood Real Estate - Killeen homes, Copperas Cove homes, Fort Hood homes

Suppose the seller thinks, as sellers sometimes do, that the property sold "too low." Suppose further, as sometimes happens, that the seller is right. If the seller obtains a copy of the appraisal -- or is apprised of its results -- he or she may start looking for ways out of the transaction. The seller may become less than accommodating to any requests by the buyer. Certainly, in such circumstances, the seller may have less inclination to negotiate over the kinds of matters that commonly arise during the course of an escrow. If you, as a seller, learn that the property appraised for $5,000 more than the contract sale price, you probably would not be as likely to give the buyer a $1,500 credit for repairs as you might have been otherwise.

So, there could be reasons for a buyer not to want the seller to know the appraised value or details of such. But, can the buyer withhold that information if the seller requests it?

There certainly is no law requiring that the seller be provided with the appraisal report. Nor is a lender under any obligation to provide that information to the seller. Indeed, it is questionable whether the lender has a right to provide that information to the seller, absent permission from the buyer who paid for it.

If a seller has a right to the appraisal, that right must arise from an obligation of the buyer. Does the buyer have such an obligation? That will depend, of course, on what is said in the contract between the parties.

If the TAR 1-4 Family Residential Contract is used then it is not address. Nor is it addressed in the Third Party Financing Adendum. If the buyer contracts a new construction home then the builder orders the appraisal and usually know value before anyone else. Is this because many builders offer to pay X amount of dollars in closing cost so this means THEY own the appraisal, even so some lender require the buyer pay for the appraisal up front. What then?

It is arguable that the appraisal, no matter who pays closing cost is not the buyer's or seller's but the lender's. The buyer has a right to obtain a copy, presuming the buyer has paid for it. Indeed, many buyers never see the appraisal, even though they do have a right to request a copy.

So, does the buyer have an obligation to provide the seller with a copy of the appraisal? I don't think so; but that opinion and a few bucks will buy you a cup of coffee somewhere. Otherwise, we'll just have to wait for a definitive court case.