Waiving Appraisal Contingency (Austin, TX)

[David Bunyea]

Looking at a house in Austin. Asking price is $485k, offering $525k (the market is super competitive). The plan is to out down 5%, live in the house, and rent out out our current house (this would be our 2nd property).

The comps don't justify the price, but the upgrades and current market climate do. We want to keep as much capital liquid as possible so don't want to end up in a situation where we have to come out of pocket for another $20k+... but this property will likely appreciate much faster than the other options we're looking at up north (Cedar Park, Leander, Georgetown, etc.)

Not sure what to do. Any advice would be appreciated.

[Ryan Kelly]

I agree with @Alex G.. The question is, do you WANT this home enough to give up the appraisal contingency? Many times, the sellers will want to see some waiver of the contingency when you are bidding that high over asking. It is your choice, not theirs. If it is your primary home and you plan to live there a long time, then the choice isn't as hard. However, if this is a shorter-term stay, you have to question buying at a high premium.