Special offer

Appraisal Contingency Removal

By
Real Estate Broker/Owner with Capital West Realty, Inc BRE# 01717774

Removing the Appraisal Contingency on purchase contracts is becoming more popular as a way of getting the seller's attention and getting your offer accepted. As we wait for appraisers to cease calling this a "declining Market", when we have very low inventory, multiple buyers and bids that are well over list price in many cases, this tactic is becoming more of a tool to get buyers in the house that they want.

 

Of course, cash is still king, but if all offers are financed and one or two have the appraisal contingency lifted, that is one less worry that the sellers will have, if they feel that getting the appraisal the be at least what the purchase agreement states and they will more than likely choose that offer.

 

Buyers, on the other hand, will need to have the available cash to pay for this variance, if the appraisal does come in below the purchase price, in order for this to work. They will also need to understand that appraisers are in a flux right now with regard to knowing whether or not the market is improving or declining. We're getting both types of appraisals in right now...they are not all on the same page.

 

What do you think about removing the appraisal contingency on buyer offers?