In Utah, THE APPRAISAL CONTINGENCY allows a Buyer to cancel the contract and have their Earnest Money returned, if the property under contract appraises for less than the contractually agreed price. This contingency has deadlines by which the appraisal and cancellation need to be made. 

Almost all Buyers should include this contingency in their offers. Leaving it out could subject you to the possibility of not only paying more for the home than it is worth, but also the chance that you would need to come up with Thousands of Dollars out-of-pocket to pay for the difference in price up front. (Your lender will likely only lend up to the appraised value.)

In the event a property appraises for more than the contract price, you can try to negotiate with the Seller, and the appraisal can be a powerful tool in those negotiations, but there is no guarantee that the Seller will agree to sell you the home at the appraised value.

Homebuyer Representation, Inc. is a Real Estate Brokerage that services Salt Lake City, Utah and surrounding areas. Agents are Exclusive Buyer Agents (EBAs) and represent BUYERS ONLY. For Free Reports or a Free Consultation, contact Homebuyer Representation at (801) 969-8989 or click the highlighted links in this paragraph.

©2007 Homebuyer Representation, Inc.