What is a Home Appraisal Contingency? |

Whether you’re buying or selling a home in Indiana, you probably know a little bit about home appraisals. But what’s a home appraisal contingency? This guide explains.

What is a Home Appraisal Contingency?

Contingencies are conditions that a real estate agent builds into a real estate purchase contract to protect their clients. These contingencies must be met or the deal won’t go through.

In many contracts, real estate agents include a contingency about home appraisals. home appraisal contingencies say that if the home appraises too low, the buyer has the right to walk away from the deal.

What Happens When an Appraisal Comes Back Low?

When a home appraisal comes back low, it means that the appraiser doesn’t believe it’s worth the amount of money that the buyer is asking to borrow. Lenders don’t like to give more money then they have to for a home because statistically, borrowers are more likely to walk away and default on their payments when the home is worth less than they paid for it. That costs the lender a significant amount of money, and they’re stuck with a house they need to turn around and sell. as a result, the lender will most likely tell the buyer that they can borrow the home’s appraised value and not a penny more.

If an appraisal comes back low, buyers have a few options. They can ask the seller to come down on the price, come up with the remainder of the money that they can’t finance on their own, or walk away from the deal.

What Happens to a Buyer’s Earnest Money if a Home Appraises Too Low?

If a real estate purchase contract includes a home appraisal contingency, the buyer typically gets to walk away from the deal with their earnest money intact. The seller doesn’t get to keep the earnest money in that case.

$1,200,000

5 Bedrooms
6 Bathrooms
5,748 Sq Ft
8.870 Acres

1700 N Newton St. Jasper, Indiana

View Property

Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

$596,000

4 Bedrooms
4 Bathrooms
5,029 Sq Ft
2.295 Acres

515 N Weisheit Drive W Jasper, Indiana

View Property

Listing courtesy of Stacey Thieman-Wright from THIEMAN REALTY.

$469,000

4 Bedrooms
5 Bathrooms
3,849 Sq Ft
0.557 Acres

4288 W Anya Court Jasper, Indiana

View Property

Listing courtesy of Linda Schroering from CENTURY 21 SCHROERING REALTY.

$425,000

6 Bedrooms
4 Bathrooms
3,780 Sq Ft
0.570 Acres

4807 Killarney Court Jasper, Indiana

View Property

Listing courtesy of Jake Mauntel from American Dream Mauntel Realty.

$400,000

4 Bedrooms
2 Bathrooms
3,490 Sq Ft
0.353 Acres

307 Newton Street Jasper, Indiana

View Property

Listing courtesy of Tama Stemle from RE/MAX Local.

$279,900

3 Bedrooms
5 Bathrooms
2,867 Sq Ft
0.800 Acres

4180 Timberpoint Court Jasper, Indiana

View Property

Listing courtesy of Melody Faulk from RE/MAX Local.

$274,900

3 Bedrooms
2 Bathrooms
1,365 Sq Ft
0.490 Acres

1443 Dexter Court Jasper, Indiana

View Property

Listing courtesy of Adam Boyd from BOYD REALTY & DEVELOPMENT LLC.

$244,900

3 Bedrooms
3 Bathrooms
2,564 Sq Ft
0.440 Acres

3422 Lakeside Dr Drive Jasper, Indiana

View Property

Listing courtesy of Diana Feuerbach from Key Associates of Rockport IN.

$237,000

4 Bedrooms
3 Bathrooms
2,577 Sq Ft
0.900 Acres

1486 3rd Avenue Jasper, Indiana

View Property

Listing courtesy of Steve Lukemeyer from F.C. TUCKER EMGE.

$219,000

4 Bedrooms
2 Bathrooms
2,100 Sq Ft
0.110 Acres

214 W 9th Street Jasper, Indiana

View Property

Listing courtesy of Ruger Kerstiens from F.C. TUCKER EMGE.

$199,900

2 Bedrooms
2 Bathrooms
1,266 Sq Ft

903-3 Reyling Drive Jasper, Indiana

View Property

Listing courtesy of Kara Hinshaw from Key Associates Signature Realty.

$199,500

4 Bedrooms
2 Bathrooms
2,280 Sq Ft
0.130 Acres

610 E Fourteenth Street Jasper, Indiana

View Property

Listing courtesy of Ryan Craig from RE/MAX Local.

$197,000

2 Bedrooms
3 Bathrooms
2,568 Sq Ft
0.190 Acres

1031 DORBETT Street Jasper, Indiana

View Property

Listing courtesy of Connie Thewes from HOFFMAN & MULLEN REALTY INC.

$195,000

3 Bedrooms
2 Bathrooms
2,440 Sq Ft
0.920 Acres

1766 W State Road 56 Highway Jasper, Indiana

View Property

Listing courtesy of Linda Schroering from CENTURY 21 SCHROERING REALTY.

$189,000

2 Bedrooms
1 Bathrooms
1,146 Sq Ft
1.130 Acres

6142 N Old Rd. 45 Jasper, Indiana

View Property

Listing courtesy of Larry Carpenter III from Carpenter Realty LLC.

Are You Thinking of Buying a Home in Dubois County?

Use our site to search homes for sale in Jasper, Dubois, Spencer, Martin and Davis counties, as well as all the surrounding communities. Unlike the “big name” sites out there, at Sell 4 Free Welsh Realty, our site is directly connected to our local MLS. We update it with new homes every hour.

Sign up for new listing alerts so you can stay on top of the newest homes for sale – and get price change alerts so you can stay ahead of other buyers and beat them to the hottest deals!

Start Your Home Search Here

Popular Jasper, Indiana Home Searches:

Newest Homes for Sale in Dubois County

View the newest homes listed in Dubois County in the last 10 days:

Welcome to this beautiful craftsman style two story home in Hunters Crossing in Huntingburg! You're greeted by amazing curb appeal and a covered front porch, and you enter the home into a spacious entry way. The main living space is completely open concept and perfect for entertaining! The light & bright living room features two large windows, and gorgeous laminate plank flooring runs throughout the entire main floor. The kitchen has an island, stainless steel appliances, and plenty of cabinet storage. On the main floor, you'll also find a half bath and a large laundry room. The primary bedroom features a private en-suite bathroom with double vanity and shower. There are two additional bedrooms, along with a bonus room that could be a 4th bedroom. You'll also love the large back yard!

$290,000 Active

221 W Stellar Way Huntingburg, Indiana

4 Beds 3 Baths 2,152 SqFt 0.170 Acres

Listing courtesy of Trae Dauby from Dauby Real Estate.

A 3 bedroom 2 full bath brick home that sits on .49 acres in Jasper's Wind Song Estates. This home has a two car attached garage and a single detached garage that could be used for storage or a work shop. Beautiful columns are a focal point in the living room and kitchen area has an eat at peninsula bar and stainless steel appliances. This is a great location to the schools and very close to the new restaurants.

$274,900 Active

1443 Dexter Court Jasper, Indiana

3 Beds 2 Baths 1,365 SqFt 0.490 Acres

Listing courtesy of Adam Boyd from BOYD REALTY & DEVELOPMENT LLC.

Country living with large lot in a cul-de-sac in Ireland area. A beautiful neighorhood, not far from schools, shops, and restaurants. This all brick home features 3780 finished square feet, 5-6 bedrooms with 3 full and 1 half baths. Inside this home you find a kitchen with beauiful oak cabinetry, corian counter tops, a middle island with chairs, tile floors, Moen faucet. A large dining room with wood floor leads through the french doors to all glass sunroom with wood trim that makes you feel like you're outside. The large living room with oak flooring has a gas fireplace. Still on the main level you have three bedrooms with large closets and a bathroom with all the modern features. The laundry room contains LG Smart washer and dryer. On the lower level, you will find large family room with possible fireplace (ask your realtor) play room, a full bath and more, a large storage area with a possible kitchen (it has cabinets and sink all you need is a refridgerator), three large rooms currently used as bedrooms with large closets. To finish off the main level you have large two car garage with work table, many opportunities for storage for fishing poles, wrenches etc. A large storage closet adds extra opportunities for your treasures. Outside side you will find a black metal archway with two trellises in flower garden that sits in backyard, along with a pergola, and a large wooden play ground set. Finally you will find 26' x 26' second 2 car detached garage that currently houses a large boat, cabinetry, work benches and more. This is a don't miss viewing!!!!!

$425,000 Active

4807 Killarney Court Jasper, Indiana

6 Beds 4 Baths 3,780 SqFt 0.570 Acres

Listing courtesy of Jake Mauntel from American Dream Mauntel Realty.