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FAQ: Appraisal Contingency Waiving the home appraisal contingency clause is rare but there are exceptions. You might waive an appraisal if the determined higher or lower value does not have an influence on your ability to purchase the home and obtain the loan, which is usually the case of a large down payment.

With an appraisal contingency in place, you do not have to proceed if the home is not valued at the offer price. You cannot close on the home without releasing the contingencies. Since the appraisal contingency clause is standard on most purchase agreements, it must be removed in writing.

You can ask your lender to get another appraisal if you disagree with an appraisal, but examine the lender's appraisal report first to strengthen your case. For example, look for factual errors in the report. ... Ask the lender to reconsider the appraisal if you find such errors.

Oriana Shea, a top-selling agent in Long Beach, California, says a 17-day appraisal deadline is standard for her area. ... So if the appraisal comes in below the agreed sale price, the appraisal contingency in your contract gives your buyers an out.

You should only consider waiving the appraisal contingency if you've talked with your real estate agent and feel strongly that you'll need to waive it to get your offer accepted or it's very unlikely for the appraisal to come in low.

An appraisal contingency clause is a condition built into a real estate contract that gives the buyer the right to walk away from the transaction if the appraised value of the property is lower than the agreed-upon purchase price.

An appraisal contingency is a standard real estate contingency in any offer drawn up for any buyer who needs to obtain a loan to a purchase a home. It gives the buyer the right to cancel escrow without penalty if the bank appraiser determines the price of the home to be worth less than the purchase price.

But without an appraisal contingency, you could be in breach of contract if you can't complete the deal because of a low appraisal, and you could lose your earnest money deposit. Earnest money is an escrow deposit the buyer makes after an offer is accepted, and it's usually 1%-3% of the purchase price.