Appraisal contingency timeline

Nothing is happening that fast in Covid snowpocalypse.

Thats right but was wondering, is it kind of standard for a longer timeline on an appraisal contingency or in fact for it be even there in first place?

Recently sold an apt and wish we had something more explicit in the contract on the topic of appraisal. The buyer’s mortgage broker was a kook and advised his clients to wait to hire the appraiser until after they got bank approval. Ended up delaying everything and I personally had to hound the lender and the appraisal management company. Wasn’t the only thing that delayed the closing, I must say.

Add it in...with a pin and blood, if that’s all you have.

INTBuyer, What would be the reasons that the buyers broker would advise his clients to wait to hire the appraiser? Is there any advantage for the buyer in that?

Nothing other than to save a few hundred dollars. It was an idiotic suggestion by the mortgage broker that I suspect was an attempt to appear “useful.”

I think it would be fair to put a deadline on fully approved financing, specifying which final contingencies may remain -- including, that a mortgage commitment letter which fulfills that part of the contract must not be contingent on appraisal.

But said deadline would be ~6 weeks, not 5 days.

IME (and, disclosure that I'm a Manhattan broker, not an attorney, here) there usually isn't an "appraisal contingency rider." For buyer to have introduced that is kind of ... chutzpah-y? and also might indicate that they're a marginal buyer, which would mean extra care and handling might be needed if a co-op is involved.

But okay, let's say there's an appraisal contingency... five days is nuts, not only because of the snow, but because rates are at such near-historic lows that everyone and their mom is trying to refinance, so the appraisers are spread pretty thin as is... add in that with COVID not everyone is working in-person ... it seems like buyer is building themselves an extra-big loophole here. They may just be nervous, possibly first-timers, but I'd try hard to talk them out of this particular clause.

did I do my ... "I'm not an attorney so this isn't legal advice" disclosure yet?

ali r.
{upstairs realty}