What is an appraisal contingency and do I need one?

An appraisal contingency lets a buyer walk away from a contract, and recover earnest money, if the lender's appraisal comes in below the agreed price and the seller will not adjust. Keeping the contingency protects a buyer from having to make up a shortfall in cash, while waiving it can make an offer more competitive in a multiple-offer situation. Brian Beatty walks buyers through the real tradeoff for their specific offer rather than defaulting to either choice.