Mortgage Glossary
Appraisal Contingency
Defined by Onias Derilus, Mortgage Capital · NMLS# 1859012 · Florida licensed mortgage broker
An appraisal contingency lets a buyer cancel or renegotiate if the home appraises below the agreed purchase price.
What Appraisal Contingency means
It protects the buyer's deposit when value comes in low. Waiving it in a competitive market is common but risky, since the buyer then must cover any gap.
Florida example
A Florida buyer keeps an appraisal contingency on a $400,000 offer. When it appraises at $385,000, they renegotiate to the appraised value rather than paying $15,000 out of pocket.
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