Need advise - Appraisal Contingency

[Harry Harrell]

Need advise - We found a house we were interested in as a primary residence purchased via conventional loan. The prior owners filed bankruptcy and offers are being reviewed by a lawyer. The house is on the market well below what other homes in the neighborhood are selling/listing for. The home is in ok shape, a lot of the previous owners belongings are still in there and it needs to be emptied and cleaned out. Carpet on stairs and in the upstairs rooms are heavily stained and need replacing. Walls also need to be painted. We offered above asking, but still relatively below what ARV's are for the area. The seller agent is asking us if we would consider removing the Appraisal contingency.

My question is this, under what circumstances would you consider waiving an appraisal contingency? If anyone has experience with bankruptcy listings, is this normal? Thanks in advance.