What is an Appraisal Contingency in Real Estate?

What is an Appraisal Contingency in Real Estate

When you buy a home in Tampa Bay, your real estate agent will most likely build an appraisal contingency into your purchase contract. But what is that, and how does it work?

What is an Appraisal Contingency in Real Estate?

Before a lender will let you borrow the money to purchase a home, it will send an appraiser to the home to determine how much it’s worth. The appraiser is an independent third party that you pay (but the lender chooses). This professional home evaluator will compare the home you want to buy to other, similar homes in the same area to determine how much it’s worth. The appraiser will look at the home’s size, number of bedrooms and bathrooms, lot size, improvements and amenities before settling on a value.

The appraiser will then send a report to your lender. The lender wants to see that you are asking to borrow an amount of money that is equal to or less than the appraiser’s value. That’s because lenders don’t want to give borrowers more money then a home is worth; statistically, homeowners are more likely to walk away and default on their loans when they are paying more for a home than it’s actually worth. Lenders don’t like to take those kinds of chances, so they’re very careful about lending just the right amount.

That’s where the appraisal contingency comes in. If the appraiser says that the home is worth less than what the seller is asking for it, your lender isn’t going to finance you for the full amount. In that case, with an appraisal contingency in your contract, you can walk away from the deal unscathed (meaning that you don’t lose your earnest money deposit).

Without this contingency in your contract, you may still be able to walk away from the deal – but generally, you’ll forfeit your earnest money deposit to the seller. Alternatively, you have the options of asking the seller to lower the asking price or coming up with the additional funding on your own.

Stunning Florida Home in Gated West Hampton  – A True Gem

Welcome to your dream home in sought-after West Hampton. This spacious 4-bedroom, 3-bathroom + large bonus room home boasts 3,086 sq. ft. of heated living area and a spacious 3-car garage, offering both elegance and functionality. With its thoughtfully designed 3-way split floor plan, this home offers ultimate privacy and room for everyone.

Upon entering, you'll be captivated by the rich wood and tile flooring throughout, seamlessly blending with the home’s tasteful finishes. The expansive kitchen opens to the family room & features stainless steel appliances, wood cabinets, breakfast-bar, pantry closet, a built-in desk, and plenty of space for family meals or entertaining. The heart of the home flows effortlessly into the open living and dining areas, making it perfect for gatherings of all sizes. Escape to the alluring primary bedroom & ensuite featuring dual walk-in closets & vanities, separate water closet, large shower and a relaxing soaking tub. 

Upstairs, you’ll find a huge bonus room — an ideal space for a media room, playroom, or home office. The possibilities are endless!
The private fenced yard offers a tranquil retreat, with a covered lanai and lush tropical landscaping surrounding the space. Whether you're enjoying the Florida sunshine, hosting a barbecue, love to garden, have kids (to include fur babies), this backyard is perfect for outdoor and low maintenance living. 

Recent upgrades including a 2023 Roof, and 2024 AC system & Paint ensure peace of mind for years to come.
In addition to the home's impeccable features, this West Hampton community offers a range of amenities perfect for families and outdoor enthusiasts. 

Take a stroll along the sidewalks, explore the scenic walking trails, or relax by the tree-lined tranquil pond with a fountain and park bench. Kids will love the nearby playground, and nature lovers will appreciate the wildlife sightings — deer, turkeys, hawks, and even eagles are frequent visitors to this beautiful setting.

Convenience is key with Top-Rated schools, Shopping, World Renowned Beaches, Tampa Bay Downs, Local Breweries, Theme Parks, Elev8, Culinary Diverse Cuisines for the Foodies, Ice Hockey & Skating rink, TIA, Fishing, Skiing, Boating, Kayaking/Canoeing nearby and the 36-hole Eagles Golf & Country Club, where you can enjoy a round of golf and more wildlife encounters.

This home offers an unparalleled combination of comfort, luxury, location, and peace of mind. A smart choice with NO CDD fees & NOT in a flood or evac zone. Don't miss out on this opportunity to make this West Hampton beauty yours & schedule your tour today! $749,800 Active

12801 Stanwyck Circle Tampa, Florida

4 Beds 3 Baths 3,086 SqFt 0.23 Acres

Outstanding home in the Carrollwood area with over half an acre!  This 5BR & 3BA pool home includes an enormous flex room for a multitude of living options!  Entertain & host away - with a huge center kitchen island, a gas range, large cabinets, exhaust, & an open floorplan design.  Your family room overlooks impressive pavers, a covered lanai area, & a private pool.  The deep lot offers privacy & a paver fire pit & sitting area too.  This split plan design is perfect for families & also an in-law design (if needed).  No carpet here.... the main living areas & bedrooms have gorgeous (wood style) tiled floors.  Seldom do you have the opportunity to have all this space & be in the heart of Carrollwood!  Close to everything convenient to the Carrollwood area & minutes from shopping centers, dining, parks, & easy access routes for commuting!  Come see how private & spacious this lot & home feel & why you'll value the incredible location!  This home has a whole house water filtration system, a newer roof ('23), water softener system, & propane for selected home functions.  A portion of the garage was enclosed for additional living area.  Currently a functional oversized 1-car garage with ample storage.  A home and location like this does not come on market often!  Schedule to view and see what makes this home so special! $1,050,000 Active

3906 Floyd Road Tampa, Florida

5 Beds 3 Baths 3,787 SqFt 0.57 Acres

Under contract-accepting backup offers. Amazing 3BR/2.5BA/1 Car Garage home for sale in the perfect location of West Tampa!  RECENT UPGRADES: ROOF 12/24, CRAWLSPACE ENCAPSULATION & FILTER SYSTEM 11/24, EXTERIOR PAINT '25, INTERIOR PAINT '25, NEW CARPET '25, & Newer first floor laminate.  X Zone: Non-Required/Optional Flood Insurance & high elevation (estimated 30ft)! This 2-Story home has newer luxury plank vinyl throughout the main floor, open family room concept, stainless steel appliances, half bathroom (downstairs), a great front patio under shingle, & plenty of storage space! Upstairs, you'll find a large master suite with walk-out balcony, large walk-in closet & private bath. Additionally, 2 bedrooms share a full bath (Jack and Jill layout) & washer/dryer set-up (in main upstairs hallway area). Enjoy a high seer rated A/C unit system ('18). Lastly, there is alley access to a 1 car attached garage, long driveway, & fully fenced yard (complete with manual roller/gate)! Great location & home!  The West River expansion of the RIVERWALK/ARMATURE WORKS/Hillsborough River is rapidly expanding on the west-side of the river & this home is in the heart of it all!  Close to downtown, U. of Tampa, Channelside, Hyde Park, The Heights, Riverwalk, Armature Works, NOHO, SOHO, Channelside, and much more!  Come see this home today!  See attached tours and website! $465,000 Pending

2130 W Spruce Street Tampa, Florida

3 Beds 3 Baths 1,518 SqFt 0.06 Acres

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