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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.
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.
What is an appraisal contingency addendum? An addendum is a separate form that, once signed by the buyer and seller, becomes part of the sales contract. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain agreed-upon conditions.
The Appraisal Contingency Addendum to Agreement of Sale (Form ACA) is to be used when the parties wish to make the agreement contingent upon the property appraising at a certain value. By using either option given in Form ACA, the parties can decide what will happen if the appraisal doesn't reach a specified value.
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