Can You Have An Appraisal If You're Paying Cash?

Can You Have An Appraisal If You're Paying Cash?

Many buyers are aware that if they’re getting a mortgage to buy a home, their lender will order an appraisal to protect its investment in the property. But what happens if you’re paying cash? Can you still have an appraisal? The answer is yes – if you included an appraisal contingency in your offer and the sellers agreed to it in writing.

In our area, most sales with an appraisal contingency use the standard PA appraisal contingency addendum (recommended by the PA Association of Realtors), which is made part of the agreement of sale. If you’re paying cash, the standard contingency allows you to choose a PA-certified appraiser to do the work (as opposed to the lender ordering it when a mortgage is involved). The appraisal contingency period is typically 30 days but can be longer or shorter if agreed to in writing by both parties.

What happens if the appraiser you hire appraises the home for an amount lower than you agreed to pay? Assuming that the standard PA agreement of sale and appraisal contingency addendum were used, you have the option to terminate the sale or come to written agreement with the sellers resolving the appraisal issue, as long as you do so within the contingency period. You could also accept the appraisal and proceed with the purchase with no change in price or terms.

If you’re paying cash for a home, you may still want to take advantage of the protections the appraisal contingency provides and the peace of mind you may gain by worrying less about overpaying.

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If you’re planning to buy or sell a home, contact Annette Nelson at (610) 247-7892 or

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