What is an appraisal contingency and do I need one?

An appraisal contingency is a clause that lets a buyer renegotiate or walk away if the lender's appraisal comes in below the contract price, protecting the earnest money deposit. Whether you need one depends on how competitive the specific listing is and how much cash you have available to cover a gap without one. Joel Boss walks buyers through that tradeoff on each North Metro Atlanta offer rather than recommending the same contingency structure for every contract.