Seller Demanding Buyers Appraisal, Asset Management Co. Out Of Control
Are asset management companies (AMC's) getting out of control? There are no lack of horror stories dealing with asset management companies, but this is a new one on me and apparently everyone else that I talk with in the Real Estate world. Because this is an ongoing transaction I'm not publishing names for now, but that will change via a follow up post once we make it to the closing table...if we actually make it that far.
For now let me ask this question of all of you: Has anyone had experience with an AMC demanding to see the buyers appraisal for any reason other than if the home does not appraise at or above purchase price? Originally the AMC who is remaining nameless temporarily explained it was needed to make sure there were no additional repairs required by the lender so that all requested repairs could be done at the same time...makes sense, however, when it was explained to them that there were no additional required repairs by the lender the AMC changed the reason for the request to needing the appraisal to make sure the appraisal didn't come in too high....what??? Actually, I get this because if the house sold too far below the appraised value then maybe the AMC is not doing its job or maybe things aren't on the up and up. Maybe the person handling the file for the AMC is just covering his butt. I'd like to add at this point that the the accepted offer was full price with the seller paying under $4K of buyer closing costs.
In the AMC's contract is a clause stating they can cancel or renegotiate the contract at any time up to closing if it is decided by management that it's not in the best interest of the seller to proceed. I've seen this before and have never had a problem until now. The AMC is demanding to see the buyers appraisal otherwise they may back out or renegotiate the terms of the contract and they are definitely going to renegotiate the terms of the contract should the appraisal come in too high (we wouldn't want the buyer to actually get a good deal now would we?). We've offered to give the seller a copy of the appraisal after closing, but they want it before, otherwise...well, you know...
I've spoke with others here in ActiveRain (who I'll give a shout out to once this comes to rest), attorneys and other Brokers to get their opinion. I'm giving you minimal information at this time, but this is the gist of it. Any thoughts or experience you'd like to share? Maybe I'm looking at this wrong and if I am I'd like your input. There will be a follow up post.
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