When you buy a cattle ranch in Lake City, a home for sale in the area, or anything else, your lender will most likely require an appraisal—and your Lake City Realtor® will set up a contingency in your real estate purchase contract that protects you if the appraisal doesn’t come out the way you (and the seller) expect it to come out.
What is a Contingency?
A contingency is a condition that must be met in order for you to proceed with a real estate transaction. If the contingency isn’t listed in your real estate purchase contract, it doesn’t count; that’s why your agent will build it in when you offer to buy a home or piece of land.
What is an Appraisal Contingency?
An appraisal contingency says that if the home or land appraises for less than what the sellers are asking you to pay for it, you won’t be stuck buying it.
Your lender will send out an appraiser who will determine the property’s value. If the property is worth less, the appraisal will be “low,” and your lender probably won’t want to let you borrow more money than you should have to pay for the property—and that can throw a wrench in your entire transaction.
With an appraisal contingency built into your real estate purchase contract, you’ll be able to leave the deal with your earnest money deposit intact.
Are You Buying a Cattle Ranch or Other Property in Lake City?
We’d love to help you find the right house, ranch, timberland, or property. Call us at 386-243-0124 or get in touch with us online to let us know what you need.
In the meantime, take some time to explore:
- Waterfront residential
- Waterfront land
- Bank-owned and foreclosures
- Short sales
- Paved road frontage
- Non-deed-restricted land
- Wooded oak tree land
- Land for land home combo