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Waiving an appraisal contingency can be a smart tactic for standing out in a competitive seller's market. Doing so could eliminate a seller's fear that the deal might fall through if the property isn't appraised for the initial asking price.
There are four common contingencies that every homebuyer needs to work through: Home inspection contingency. Appraisal contingency. Financing contingency. Home sale contingency.
The contingency removal date is the date defined in the purchase offer specifying when the buyer will remove contingencies and commit to closing. If the buyer backs out of a deal after contingencies are removed, they can lose their deposit. In extreme cases, the seller might sue for additional damages.
An inspection contingency, also called a \u201cdue diligence contingency,\u201d gives the buyer the right to have the home inspected in a specified time period. Depending on the findings of the home inspection, the potential home buyer can negotiate repairs or they can cancel the contract.
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