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[quote=Anonymous][quote=Anonymous]

Please correct me if I'm wrong, but here's my understanding: the appraisal and the financing contingencies are different things. An appraisal contingency means you can lower the price to the appraised price after the contract, the financing contingency says if the bank appraises the home as worth less than the mortgage amount and therefore refuses you the mortgage the contract is void unless you choose to come up with the difference. We just lost on offer where we waived the appraisal and the inspection (had pre-inspection) but maintained the financing contingency.

PS 11:48 we are reeling too. This was definitely *the one*. It hurts![/quote]

I don't think this is correct.

An appraisal contingency means you can walk and recover your earnest money if the house doesn't appraise for the contract price. It can open a new round of price negotiations, but the seller isn't required to automatically lower the price to what an appraiser says it's worth.

In a financing contingency, a bank won't give you a loan if it doesn't appraise. So, basically you have the same choices as under an appraisal contingency: Walk, negotiate the price lower, or make up the difference in cash if you really want the house and the seller won't budge on price.

Of course if the seller won't budge, that lower appraisal is out there already. So, it's leverage for you in negotiations. Depends on how motivated the seller is and whether or not there's another buyer waiting in the wings who might be willing to pay more.[/quote]

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