Appraisal contingency

You should definitely have an appraisal contingency. If the appraisal comes in low I assume you would not want to close right? You don't want to put yourself in that position. If they fight it hard then that should indicate they think it will come in low. Perhaps you could get an appraisal before you sign?

I don't think anyone should sign a contract in this market that doesn't have financing or appraisal contingency.

If you're getting a mortgage the bank will do the appraisal and if it comes in lower your terms may be adjusted but it would depend on other factors. In most cases I would think you could cover any concerns with a standard mortgage contingency.

Thanks for your feedback. Yes, we want to make sure we don't overpay for today's market value. We can't rely on the lender to refuse financing, as we know they upheld financing to someone else who's appraisal came in under purchase price.

What I did was not sign the contract until the bank did the appraisal ,due diligence etc. and had a written commitment with all the terms.They did an appraisal and a second desk field appraisal before they would sign off.A mortgage contingency is not enough,it doesnot allow you to have the rate you want,only the ability to get the mortage.They may change the rate even if they lock it.It is a new world.I put 40%down and went through major scrutiny to get the rate I wanted .Good luck

Thanks Michele, I wasn't aware that one could get a bank appraisal and financing commitment before signing the contract. Is that common?

No,but it is possible,I did it.Alot better than tying up a deposit and running the risk they change the rules just before closing.The seller understood and with today's market they are more accommodating ,especially if their attorney has been on both sides of the table.