Appraisal Contingency
A contract clause letting you renegotiate or walk away if the home appraises below the purchase price.
In plain English
An appraisal contingency protects you if the appraised value comes in lower than what you agreed to pay — giving you the option to renegotiate the price, cover the gap yourself, or cancel the contract and keep your earnest money.
Waiving this contingency to win a competitive bidding situation means you'd need to cover any appraisal gap entirely out of pocket — worth thinking through carefully first.
Where you'll run into it
Guides and tools on TheBuyingPath that cover appraisal contingency in context.
Related terms
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