Waiving Appraisal Contingency and Loans?

[Ashley Keeler]

Investing in  a really hot market has been insanely frustrating. To get ahead, our agent asked if we would be comfortable waiving the appraisal contingency, but not an inspection contingency. 

Knowing the pitfalls of doing so, and today being a Saturday, what will the loan be based on if the appraisal contingency is removed? 

We will still do an appraisal, per our agent just so we know our bargaining ground, but would the lender base a loan on the appraisal, even if it is not part of the contract? 

Waiting on lender's answer, but may not receive it til Monday! Thanks in advance!

[Russell Brazil]

It is unfortunately the reality of the market.

You basically have 2 choices

1) Waive contingencies 

2) Skip new to market properties altogether and focus on stagnant properties on market say 21 days or more.