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January 19, 2023
An appraisal contingency is a clause in a mortgage transaction that provides security for the buyer. This contract allows for the homebuyer to back out of the transaction if the home is appraised at a lower value than the purchase price included in the initial contract. Appraisal contingencies are often used by homebuyers who are using financing for their home purchase, or if the person is buying a home in an area where prices are unpredictable.