Here’s what you need to know about the appraisal cancellation addendum.
Today I want to talk about the addendum covering the right to terminate due to the lender’s appraisal. This addendum waives your right to cancel the sale if the appraisal comes in short whenever you’re using third-party financing. It’s been around for a while, but in the last few years, It’s become a lot more relevant because of the increasing prices. I wanted to cover this form in more detail since it’s being used much more nowadays.
You can watch the full video above or skip to topics that interest you using the timestamps provided below for your convenience:
0:27 — How low appraisals usually work
1:00 — Explaining the form
1:48 — The full waiver part of the form
2:56 — How we have used this form
3:39 — The partial waiver part
4:25 — Using a clause for market cap
5:06 — Wrapping up
I hope this clarified how this form works. If you want to have a discussion about this form or if you have any other real estate questions, feel free to give me a call. I’d love to sit down with you and have a conversation.