We are seeing appraisal contingency in about half the contracts we see these days– meaning a renegotiation has to happen if the appraisal comes back too low.⁠⁠

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?? In the OTHER half of contracts, we are NOT seeing that appraisal contingency, meaning that buyers are agreeing to pay the difference — in CASH– if the appraisal comes back too low!⁠⁠

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So why do they have to pay the difference in cash? It’s simple! The lender simply cannot lend for more than what the appraisal is, so buyers have to come out of pocket for this.⁠⁠

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If the buyer does NOT have the money upfront, they would then have to terminate the contract with you as the seller.⁠⁠

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You, sellers, would likely keep the earnest money and then either list your home back on market or move to a backup offe

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