Termination because of appraised value lower than the offer price-possible?

[immiq]

What is the name of your state?AL
The contract has a separate appraisal contingency. The lender does not require an appraisal because of the small loan amount. If the market value (appraised by the county tax assessors) is lower than the purchase price, can a buyer use that appraisal to back out of the contract? Thanks.

 

[PghREA]

What is the name of your state?AL
The contract has a separate appraisal contingency. The lender does not require an appraisal because of the small loan amount. If the market value (appraised by the county tax assessors) is lower than the purchase price, can a buyer use that appraisal to back out of the contract? Thanks.

The county tax assessors assign an assessed value to the home not an appraised value. In order to get an appraised value, you need to hire an appraiser.

 

[immiq]

The county tax assessors assign an assessed value to the home not an appraised value. In order to get an appraised value, you need to hire an appraiser.

But I found it is called the Total Value. There is another value called Assessed Value which is much lower than the Total Value. The Current Value Information contains the Current Land Use Value, Improvement(s), Total Value and Assessed Value. I have found the Total Value is lower than the contract price. I wonder whether I can back out of the contract without penalty. I have a separate appraisal contingency in the contract. If anyone knows the answer, please share. Thanks.

 

[PghREA]

But I found it is called the Total Value. There is another value called Assessed Value which is much lower than the Total Value. The Current Value Information contains the Current Land Use Value, Improvement(s), Total Value and Assessed Value. I have found the Total Value is lower than the contract price. I wonder whether I can back out of the contract without penalty. I have a separate appraisal contingency in the contract. If anyone knows the answer, please share. Thanks.

What I am trying to explain to you is that the ASSESSED value from the county assessment office IS NOT the same as an APPRAISED value which is what the sales contract is referring to.

The assessed value is used to calculate the property taxes on the home. It is broken down into land value and building value which when added together makes up the total value for the property. You certainly should hope that the assessed value is less than you are planing to pay for the property because the assessed value is what you will pay property taxes (real estate taxes) on.

as·sess·ment [ ə séssmənt ] (plural as·sess·ments)
noun
2. property valuation: a calculation of the value of something, made especially for tax or insurance purposes


ap·prais·al [ ə práyz'l ] (plural ap·prais·als)

noun
1. valuation: an estimate of how much money something is worth, especially one given by an expert


There is a big difference.

 

[CAlandlords]

But I found it is called the Total Value. There is another value called Assessed Value which is much lower than the Total Value. The Current Value Information contains the Current Land Use Value, Improvement(s), Total Value and Assessed Value. I have found the Total Value is lower than the contract price. I wonder whether I can back out of the contract without penalty. I have a separate appraisal contingency in the contract. If anyone knows the answer, please share. Thanks.

If you're so worried, just pay for a proper appraisal and make your decision based on that. Forget this Assessed/Total Value thing. You cannot use it to back out anway. You can only use an actual appraisal.

 

[HomeGuru]

What is the name of your state?AL
The contract has a separate appraisal contingency. The lender does not require an appraisal because of the small loan amount. If the market value (appraised by the county tax assessors) is lower than the purchase price, can a buyer use that appraisal to back out of the contract? Thanks.

**A: the simple answer is NO.