Advice for Sellers

Although the Buyer typically pays for and is responsible for procuring the Home Inspection and the Lender's Appraisal (these 2 elements are also typical contract contingencies); it is nevertheless a good idea for the Seller to procure both of these themselves in advance of putting the house or property on the market. The cost of both out of the Seller's pocket would be nominal, but the information obtained would be highly valuable in selling and marketing the home.

For example, the Seller would have the benefit of knowing what material defects or repairs (if any) would come up on the Buyer's home inspection which the Seller might otherwise be unaware of; and could either address any such issue prior to listing the home, factor that in to the sales price, or be able to address it later if it comes up during contract negotiations. Similarly, having an appraisal done at the time of listing the home for sale also puts the Seller's price (expectation & perceived value) on a firm objective foundation & limits the scope of contract price negotiation. The appraisal would not necessarily have to be disclosed to the buyer, but could be a very valuable negotiating tool or rebuttal should the Buyer's lender appraisal come in lower than what the Seller's was.

For example if the Seller got an appraisal done before putting the home on the market for $500,000, and the Buyer offered an amount higher than this, lets say $520,000 and the Buyer's lender appraiser valued the home at $520,000; then obviously disclosure of the lower price would undermine the Seller's price and position and would have been quite frankly stupid. If, however, the Buyer's lender appraisal came in lower than $500,000 and the Buyer was trying to either get out of the contract on the lender's appraisal contingency clause or negotiate for a lower sales price, then having such information in hand already would be very powerful leverage to refute the Buyer's position and aid in full contract ratification and settlement ; )