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Mortgage Glossary

Appraisal Contingency

Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker

An appraisal contingency lets you renegotiate or back out if the home appraises low. It protects your deposit. It is a common contract clause.

What Appraisal Contingency means

If the value comes in short, you have options. You can ask for a lower price or walk away. It shields you from overpaying.

Florida example

A Florida home appraises below the offer. The contingency lets the buyer ask for a price cut. If the seller refuses, the buyer can exit.

What it is

An appraisal contingency lets you back out or renegotiate if the home appraises for less than your offer. It protects your deposit.

It is a common clause in a purchase contract.

Why it matters

This contingency shields you from overpaying and from a loan shortfall. If the value comes in low, you have options.

We help you write offers that protect you. Apply now and we will guide your contingencies.

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Related Mortgage Terms

Appraised ValueAppreciationAs-Is Condition
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