Should I Include an Appraisal Contingency?

In our current market, there are many buyers waiving or agreeing to pay a certain amount above appraised value. We recommend including an appraisal addendum with your offer to protect you from overpaying. FHA and VA buyers have an appraisal contingency built in to the FHA / VA addendum. 

If you are offering above list price and competing with other buyers, you should be willing to pay a some amount above appraised value and include that with your offer. For example, “Buyer agrees to pay up to $10,000 above appraised value or purchase price, whichever is less”