Home Buying in Taunton>Question Details

Janet, Home Buyer in Costa Mesa, CA

What does appraisal contingency and removal means?

Asked by Janet, Costa Mesa, CA Tue Sep 29, 2009

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Lori Lincoln’s answer
An appraisal contingency protects home buyers from buying a home that could be valued less than what it is really worth. The process is that a mortgage broker or bank will assign a professional appraiser to compare other similar sold properties to the one you are buying. When the appraiser looks at the comparables, he or she will place a value on the property through using a lengthy evaluation.
It is important that you understand this so you will know why an appraisal contingency is very important if you are a buyer.
0 votes Thank Flag Link Fri Oct 2, 2009
Janet, As long as your mortgage contingency is in effect you shouldn't have a problem getting your deposit back. Check with your agent. For future reference it would be a good idea to put a clause in the next Purchase and Sale agreement saying subject to property appraising for sale price.
Best of Luck.

Bing Byrne
0 votes Thank Flag Link Wed Sep 30, 2009
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