What is an Appraisal Contingency?
An appraisal contingency is a clause included in a purchase contract that notifies the seller that they buyer intends to have the property appraised as part of the purchase process. This gives you the option to back out of a contract if a home appraises for less than the purchase price.
If the buyer does not intend to have the property appraised the appraisal contingency can be waived makeing their offer that much stronger in the eyes of the seller.
However, we do not recommend you waive the appraisal UNLESS you’ve done the following:
- Talked with an agent you trust
- Have done your research on closed sales in the area
- Have the funds to cover any [potential] gaps in the appraisal and purchase price.
Looking for more information on appraisals and what to do if your appraisal came in low? Check out our blog post here!
If you have any questions we’re here to help! You can reach any member of our team at 574-360-2569 or email at firstname.lastname@example.org and we will get right back to you.