Late Appraisal and Seller Anxiety
Q:
"The buyer's appraisal is late, and we don't have any information on when it will be sent to their lender. These buyers seem solid—they offered full price and should easily qualify. It's unclear why the appraisal is delayed. We did have a backup offer, but those buyers have already found another property.
My sellers want to cancel. They "have a bad feeling" about the buyers and see the late appraisal as a sign. They're asking if they can cancel escrow. I believe they have the right to do so, but I'm hesitant to let the sale fall through over a feeling. I'm also relying on this commission. What am I supposed to tell them? "
A:
There are several issues to consider. Simply because the appraisal is late may not provide your clients with sufficient grounds to cancel the contract. It is essential for them to consult with an attorney to get legal advice. If they cancel prematurely, they could be sued by the buyers for specific performance.
Your clients' interests must come first. While you might want to save this deal, if your clients are legally entitled to cancel and that's what they want, you may need to get the house back on the market for them.