We are under contract to sell our property in SF which wasn’t listed on MLS. The contract is a standard template used by the CAR via agents. The EMD is 3% of the sale price. The only contingency is a 10 day appraisal contingency. The appraiser did come in at day 7 and turned in the appraisal at day 9 at the purchase price.
The buyers didn’t remove the appraisal contingency but asked for an extension which we didn’t sign to wait on the lender to approve the appraisal. Now the lender has approved the appraisal but our buyers still haven’t removed the contingency and are also beyond the contract dates.
Our agent is hesitant to provide us scenarios that put us at risk. So the question to the group here is;
Can the buyers cancel the contract based on the appraisal contingency?
I just closed on my home sale yesterday 06/15, original COE 05/23, buyer missed then extend to 06/09 at no charge. Buyer missed again, so I charge $800 for holding cost and had them add $5000 to EMD so that if they miss the next one I charge $1600 and if they dont like then I keep all EMD totaling $15k. All contingencies were removed
prior to the first COE so buyer had no room to negotiate although they did try.
As it’s past the contingency period, the buyers will close the deposit, but you will get to keep the EMD. Selling a home it’s not an easy thing to do, and you face many risks, so you’d better be prepared for any unexpected situations.
Yes, buyers can cancel the contract based on the appraisal contingency in real estate. The appraisal contingency is a clause in the purchase contract that allows the buyer to cancel the contract or negotiate with the seller if the property is appraised at a lower value than the purchase price. Buyers should act within the contingency’s deadline to avoid waiving their right to it.