What is an Appraisal Contingency?
When you buy a home, whether it’s a home for sale in Sand Point or a house for sale in Barataria Bay, your Port Aransas Realtor® will put contingencies in your real estate purchase contract that let you walk away from the deal if things aren’t working out the way you want them to.
One of those contingencies is likely going to involve the home’s appraisal.
What is an Appraisal Contingency?
An appraisal contingency says that if the home’s appraised value is lower than its listed sales price, you can walk away from the transaction without losing your earnest money deposit.
Your lender will order an appraiser when you want to make an offer on a home. The appraiser will compare the home to others in the area and combine several factors to find out if it’s worth what the sellers are asking.
If it’s worth less than what the sellers are asking, you have a few options: You can ask the sellers to lower their price, come up with the difference in cash on your own, or cancel the deal.
Are You Buying a Home in Port Aransas or on North Padre Island?
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