Appraisal Contingency Addendum Template

This Appraisal Contingency Addendum is made on [Date] and is attached to and made part of the following real estate purchase agreement:

Agreement Date: [Date]
Buyer: [Full Name]
Seller: [Full Name]
Property Address: [Property Address]

1. Purpose of Addendum

This Addendum sets out the parties’ agreement regarding the property appraisal and the effect of the appraisal on the purchase transaction.

Except as stated in this Addendum, all other terms of the purchase agreement remain unchanged and in full effect.

2. Required Appraisal Value

This Addendum is based on a purchase price of:

[$Amount]

The property must appraise at not less than:

[$Amount]

For purposes of this Addendum, the appraisal shall be performed by:

☐ a licensed or certified appraiser selected by the lender
☐ another qualified appraiser acceptable under the financing or contract process
☐ other: [Describe]

3. Appraisal Deadline

The appraisal contingency shall remain in effect until:

[Date]

The Buyer shall use reasonable efforts to obtain the appraisal by that date, subject to lender timelines, appraiser availability, and other ordinary transaction conditions.

4. If Property Appraises at or Above Required Value

If the property appraises at or above the required appraisal value stated above, this contingency shall be deemed satisfied and the transaction shall continue under the purchase agreement.

5. If Property Appraises Below Required Value

If the property appraises below the required appraisal value, the following shall apply:

☐ Buyer may terminate the agreement by written notice
☐ Buyer may request a reduction in the purchase price
☐ Buyer may elect to proceed without a price reduction
☐ Buyer may pay the difference between the appraised value and purchase price
☐ the parties shall attempt to negotiate revised terms
☐ other: [Describe]

6. Price Adjustment Option

If the parties agree to reduce the purchase price based on the appraisal, the revised purchase price shall be:

☐ the appraised value
☐ another agreed amount: [$Amount]
☐ to be determined by written amendment

If no agreement is reached within [Number] days after notice of the low appraisal, the following shall apply:

[Insert terms]

7. Notice Requirement

Any notice under this Addendum shall be given in writing by the party giving notice to the other party within [Number] days after receipt of the appraisal or knowledge of the appraisal result.

Notice may be given by:

☐ email
☐ personal delivery
☐ broker delivery
☐ other method allowed by the purchase agreement

8. Earnest Money

If the agreement is terminated under this Addendum, the earnest money shall be handled as follows:

☐ returned to Buyer
☐ released according to the purchase agreement
☐ other: [Describe]

9. Buyer Election to Proceed

If the Buyer chooses to proceed despite a low appraisal, the Buyer shall notify the Seller in writing by [Date].

Unless otherwise agreed in writing, the Buyer’s election to proceed shall mean the appraisal contingency is waived for the transaction.

10. Entire Addendum

This Addendum contains the full understanding of the parties regarding appraisal contingency terms for the property described above and replaces prior discussions on that subject unless otherwise stated in writing.

11. Signatures

Buyer Signature: __________________________
Name: [Full Name]
Date: [Date]

Seller Signature: __________________________
Name: [Full Name]
Date: [Date]

Additional Signature, if needed: __________________________
Name: [Full Name]
Date: [Date]