Appraisal Contingency Waived vs. Standard Appraisal Contingency
An appraisal contingency protects a buyer if the home appraises below the agreed purchase price, but in competitive markets, some buyers waive it to make their offer more attractive to sellers.
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Appraisal Contingency Waived
The buyer agrees to proceed with the purchase at the agreed price regardless of what the appraisal comes back at, without a built-in exit or renegotiation right if it comes in low.
- Can make an offer significantly more competitive in a multiple-offer situation
- Signals strong certainty to the seller
- Buyer is on the hook to cover any gap between a low appraisal and the purchase price, typically in cash
- No built-in exit or renegotiation right if the appraisal comes in significantly low
Standard Appraisal Contingency
The purchase contract includes a standard contingency allowing the buyer to renegotiate price or exit the contract if the appraisal comes in below the agreed purchase price.
- Protects the buyer from being forced to cover a large, unexpected appraisal gap
- Provides leverage to renegotiate price if the appraisal comes in low
- Can make an offer less attractive to sellers comparing multiple bids in a competitive market
Which one makes sense for you?
A standard appraisal contingency protects buyers from being forced to cover an unexpected gap in cash, and is the lower-risk default outside of intensely competitive markets. Waiving it can help win a competitive bidding situation, but should only be done with a clear-eyed understanding of the cash you'd need if the appraisal comes in low.
Key cost factors.
- How competitive the specific listing is
- Your available cash cushion to cover a potential appraisal gap
- How confident you are in the offer price relative to recent comparable sales
- Local norms for how commonly this contingency is waived
Before you decide.
- What's my realistic cash cushion if the appraisal came in meaningfully below my offer price?
- How does my offer price compare to the most recent relevant comparable sales?
- Is there a partial middle ground, like a limited appraisal gap coverage amount?
Frequently asked questions.
Is there a middle ground between waiving and keeping the appraisal contingency?
Yes — some buyers offer to cover a limited, capped appraisal gap in cash (for example, up to a specific dollar amount) rather than fully waiving the contingency, which can be a way to strengthen an offer while limiting risk.
All figures on this page are illustrative examples for general education, not quotes, appraisals, or guarantees of actual pricing. Actual costs vary by provider, location, project scope, and market conditions — always get a specific quote before making a purchasing decision.
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