Escalation clause questions

[Anonymous]

12:01 here. Yes, I realize the financing contingency is a different but related entity. Just curious about people's decisions to drop various contingencies, but especially appraisal and financing. I suspect we lost to someone who had lost over this before, or someone with more money in the bank. We just weren't in a position to gamble our EMD.

Yes, I know - naive, but before we moved here, we thought these things were pretty standard! We really had no idea that we would have to drop a repair contingency to be competitive with our bid.

Unfortunately, all other houses now pale in comparison for DH who after 3 weeks is still in Lost Bid Mourning.

[Anonymous]

In a financing contingency, a bank won't give you a loan if it doesn't appraise.

The financing contingency also covers you if you lose your job between contract and expiration of the contingency, or if the house is uninsurable. It's NOT just about the appraisal.