An appraisal contingency connects three records: the negotiated purchase price, the contract remedy language, and the lender's collateral analysis. Fannie Mae treats the appraisal report as a structured underwriting input and separately requires the lender to review the contract and addenda. An appraised value is not a promise that a buyer can cancel, renegotiate, or recover a deposit.
Evidence to compare
| Record | Research question |
|---|---|
| Signed purchase agreement | What happens if value is below price? |
| Appraisal report | What value, date, condition, and comparable sales did the appraiser report? |
| Loan Estimate and underwriting conditions | Did the financing assumption change? |
| Addendum or amendment | Was a price reduction, credit, or waiver actually signed? |
Fannie Mae's appraisal requirements and contract-section guidance show why the contract price belongs in the review set, while the appraisal remains an independent valuation opinion.
A measured comparison
For internal analysis, calculate the price-to-value difference as (contract price minus appraised value) divided by contract price. Keep the numerator and denominator visible, and separate original contracts from amended ones. The calculation describes the file set; it is not a national appraisal-gap rate. Fannie Mae's rule is a process standard, not a published population statistic, so a defensible report must state the file count, valuation dates, and missing-document exclusions.
Research conclusion
A defensible exception is “appraisal below contract price; remedy not located,” not “appraisal failed.” Preserve the appraisal, signed notice, deadline, and amendment. The contract reviewer can identify missing evidence; the parties' attorney or broker must interpret enforceability and local law.
Sources and limits
Primary sources: Fannie Mae Selling Guide, General Appraisal Requirements and Subject and Contract Sections. These are underwriting standards, not a survey of all contracts.
**Professional disclaimer:** This research is informational and not legal, appraisal, lending, or real-estate advice.