Get Appraisal Gap Waiver Form

The third (3rd) party financing addendum is attached to a sales contract that outlines the terms of a loan (e.g., conventional, FHA, VA) that is agreeable to the buyer in order to close on the property. The sales contract is usually contingent upon the buyer receiving the loan as detailed in the addendum.

What Is An Appraisal Contingency Addendum? An addendum is a separate form that, once signed by the buyer and seller, becomes part of the sales contract. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain conditions they agree to.

Getty. An appraisal contingency clause is a provision included in purchase contracts that allows homebuyers to back out of their contract if a home is appraised for less than the purchase price included in the contract.

Low appraisal If the home appraises at a lower rate than the buyer's offer, and the seller won't reduce the price of the home, the buyer can ask for the earnest money back.

Without an appraisal contingency, if you can't complete the deal because of a low appraisal, you'll be in breach of contract and could lose your earnest money deposit.

Waiver. Under the Third-Party Financing Addendum, the buyer has the right to terminate if a low appraisal does not satisfy the lender's underwriting requirements for the property.

If you are financing your home, an appraisal contingency is strongly recommended to protect yourself from a low appraisal. ... On the other hand, without the appraisal contingency, a seller could be more likely to accept your offer over others if you're able to pay cash or put down a large down payment.

An appraisal contingency protects the buyer and is used to ensure a property is valued at a minimum, specified amount. If the property does not appraise for at least the specified amount, the contract can be terminated, and in many cases, the earnest money is refunded to the buyer.

An appraisal waiver allows qualified home buyers to skip the in-person appraisal process when buying a home. Instead, lenders use data generated by an automated underwriting system to determine the value of the home based on the information it has collected from other recent home sales in the buyers' area.

What Is An Appraisal Contingency Addendum? An addendum is a separate form that, once signed by the buyer and seller, becomes part of the sales contract. Appraisal contingency addendums are state-specific and allow buyers to move forward with their purchase under certain conditions they agree to.

You should only consider waiving the appraisal contingency if you've talked with your real estate agent and feel strongly that you'll need to waive it to get your offer accepted or it's very unlikely for the appraisal to come in low.

Ribbon's Appraisal Protection guarantees your contract price up to our Ribbon Max Value. If the home appraises for a lower value than the contract price, Ribbon will make up the difference for no additional fee. This provides the seller with peace of mind since a low appraisal won't derail the closing.