Hi everyone, I’m a FTHB and am closing on a house in New Jersey in about two weeks. We offered $5K above asking price, and our agent suggested also offering a $5K appraisal gap, which we did.
The sellers accepted and we both signed the contract. Thing is, their agent forgot to add any verbiage about the appraisal gap. Since then, the house appraised fine. Mortgage has been underwritten. The only problem is with the sellers. They have a lis pendens on the property they neglected to mention but claim they will have resolved by closing. The title company did extend us title insurance, so I take it there isn’t an issue there, but it seems like a big deal to leave out.
Today our agent calls us to say the listing agent wants us to initial an addendum to include the appraisal gap, even though the appraisal already happened and there wasn’t a problem. He also included a line about us ensuring we have funds necessary to close. I asked my agent why we need to sign this, but he didn’t give a great answer.
Now, I don’t want the deal to die. But I see no benefit to be gained from changing the contract at this point. Would our lender need to reevaluate anything if the contract changes? And is there any way that this could back to bite us – for example could they suddenly spring a bunch of costs for us to cover at closing, then point to the new addendum?
Edited to add: we wound up with a super new real estate agent. He seemed out of his depth as soon as the words “lis pendens” were mentioned. Lesson for the future: the only agents worth their commission are the ones who have seen some shit.