Folsom, CA Real Estate

06/13/2026

Should I waive the appraisal contingency?
Question:
Dear Kari,
I am trying to buy a home, and my agent has been a great source of help for me. Every home I seem to like has multiple offers and I get aced out. This is really stressing me out. My agent wants me to take out the appraisal contingency when she writes my next home offer. I was taken back with concern. Could you tell me if this practice is even legal?
Answer:
To answer your question is short, yes, it is legal to remove the appraisal contingency when making an offer on a home. It is good to know that most all purchase contracts have several contingencies as this is common practice, such as loan contingency, property investigations, seller's disclosure, title contingency and so on. The usual time frame for contingencies is from 7 to 12 days or more.
The appraisal contingency is in the purchase contract to not only to protect the lender's interest it also protects the buyer's interest. Let's face it in more situations than not, the lender has more to lose then the buyers do in the event of any default occurs on the loan.
Lenders want buyers to obtain the loan as this is their business. There are strict guidelines required for each loan process. The appraisal amount must match or be greater than the
agreed upon purchase price offer or the lender will not make the loan at all.
Multiple offers can be very competitive, and a low appraisal is every seller’s nightmare. I think your agent was trying to help your offer gain an edge to seem more appealing to the sellers. However, this could force you in the event the appraisal comes back lower than purchase
price to have you make up the difference with additional cash. If you have extra cash to put down in this situation and feel comfortable then I would agree with your agent by taking out the appraisal contingent. If you don't have the extra cash, I would never make this suggestion.
Let's look at some reasons for a low appraisal. It could be that the appraiser is from out of the area and not familiar with current market values. The appraiser could be a newbie, or the seller could have overpriced the home due to emotional ties or greed. There could be an error in placing too much value on upgraded items or selected comparable sold homes were from the wrong or lesser desirable school district.

In the event you keep your appraisal contingency some solutions to solve a loan appraisal gap might be, sellers can simply lower the price of the home equally to the appraisal value or buyers and sellers can agree to split the difference. They can also agree to pay for another appraisal or obtain a completely new lender.

My first choice would be to dispute the appraisal. This can be done by writing a letter to the appraiser and sending the lender a copy also. The letter should be polite, straight to the point and without a vicious tone. It is good to point out specifics of why the value is different in your
opinion. Offer new comparable sold homes or further information on the existing properties the appraiser selected. You may find out a home took a lower price because of a divorce or problems with the home which caused a lower selling price.
Ask the appraiser why the comparable homes were selected and if he or she would consider taking a second look at the home to refresh their memory. Because the appraiser does not have to change anything.

In conclusion sellers should consider themselves lucky when buyers are willing to look at options after a low appraisal. Some buyers will cancel the contract immediately if the appraised amount is one penny less than their accepted offer price. Keep in mind that the appraiser is only human and reflects only one person's opinion. My first choice would be to dispute the appraisal.
I hope this information was helpful.

Kari McCoy owns the Kari McCoy Group, Residential Real Estate

06/09/2026

I have featured photos of cyclists struggling up or cruising down Ridge Road before in this space. It is a well-ridden route for riders heading to Newcastle or even Auburn.

06/09/2026

Buying a home with a pool can be exciting. The pleasure of lounging poolside, cooling off with a dip on a hot day, hours of outdoor entertainment, swimming, water exercise, enhancement of outdoor BBQs and parties with family, friends and neighbors is a delight.

06/09/2026

The Stagecoach Trail in the Auburn State Recreation Area is really three trails in one.

06/09/2026

06/09/2026

06/09/2026

Long-running Sacramento tradition returns with concerts, carnival thrills, livestock shows, monster trucks and agricultural experiences through Memorial Day

06/09/2026

What terms can home buyers negotiate besides the asking price?
Question:
Dear Kari
We’re new to the home buying process and were wondering besides negotiating the purchase price of a home, are there other things we can ask the sellers to include or cover?
Answer:
Wow, that’s a fantastic question! When most buyers think about gaining an edge in a home purchase, their first thought is usually negotiating a lower asking price. But the good news is that price isn’t the only factor on the table. There are many other terms buyers can potentially negotiate with sellers to create a stronger overall deal. This applies unless the home is being sold in “as is” condition.
Some examples of possible items buyers might be able to negotiate with sellers to benefit their position:
Interest rate buydown: Ask the sellers to contribute toward buying down the mortgage interest rate.
Title insurance costs: Have the seller contribute to the buyer’s portion of these fees to protect the buyer and lender if any title claims arise.
Lender fees: Arrange for sellers to help pay some loan costs like appraisal fee, origination costs, and or loan processing costs.
Closing date: Adjust the home’s closing date to help manage prepaid loan expenses and lower the cash required at closing table.
Appliances and fixtures: Include a request to keep the refrigerator, washer, and dryer.
Earnest money amount: The amount of the deposit money is negotiable.
Contingencies: Modify or add contingencies for financing, appraisal, inspection, or other terms that are important.
Repairs or credits: After the home inspection, if issues are discovered, negotiate for the seller to make the repairs, provide a credit at closing so you can handle them yourself, or agree to a price reduction.
Cleaning and junk removal: Work it out for the sellers to have the home professionally cleaned and all junk removed from the yards.
Home warranty: Make a request for the sellers to provide a one-year home warranty, which is a service contract covering some repairs of major systems and appliances in the home.
Outdoor Items: Negotiate for patio furniture, grills, lawnmower sheds, children's play structures. potted plants and other items.
Electronics: Request all-mounted TVs, alarm system, or sound systems and more.
Furniture and décor: Including certain furniture or décor items in the agreement can simplify the seller’s transition while increasing the buyer’s value.
HOA fees: Ask for some prepaid HOA dues or transfer fees to be paid by the sellers.
Work with a Savvy Real Estate Agent: An experienced agent can help reveal the seller’s motivations, analyze market trends, and guide you on the most effective negotiation strategy. With this insight, your offer will be better informed, and the more you understand your options, the stronger your position when crafting a competitive, strategic offer.
I wish you the best in the home hunting process!

06/09/2026

If the housing market feels confusing right now, you’re not alone.

06/05/2026

Dam Failure Inundation. Dams and reservoirs hold large volumes of water and represent a potential downstream hazard. 😳 One of many hazards required to be disclosed in a real estate transaction. Make sure to use a trusted name when navigating nature & real estate!