Whether you are selling a home or buying one, the property will need to be appraised and the value of the home is a major part in the process. The appraisal serves various purposes in a transaction for both buyer and seller.  It acts protect everyone who is involved in the sale; the seller, the buyer, the lender, and the insurance company.

At times, buyers who are find a home they want but are competing with other purchasers, may waive the appraisal contingency.  However, most all lenders however will still require an appraisal before any financing will be finalized.

Waiving the appraisal is a dangerous way to buy a house. Buyers can loose some of their earnest money if the appraisal does not come in high enough for them to obtain financing. Sellers can demand that some of the earnest money be used to compensate them for money lost due to financial losses as well as having to put the property back on the market because the buyer wrote a contract they can't fulfill.

If you are buying a home, it is important to remember that you wouldn't buy a car or even invest in stock without determining the true value of the object of your purchase. Purchasing a home should not be any different and failing to do so can cost you thousands of dollars.