I have made an offer on a home.
There is another buyer wanting to buy the home in cash.
So the seller is asking me to waive the clause that my offer is contingent on appraisal.
Is this a good idea?
A similar home in this Phoenix area sold for the same asking price 9 months ago and prices have gone up since then like crazy.
What are the chances that the home wont appraise for much higher and me being stuck with buying that home with extra cash out of my pocket?
Make the contract subject to the loan amount you need to do the deal. If it does not appraise out then you can not get the loan dollar amount you need. How much earnest money do you have to put up? This is really your only thing at risk. If the house does not appraise for what you need you can just walk away and lose the earnest money or even agree to split it with the seller. I do not actually reccommend this but it is one way that the system works. You could get the reputation for tying up property and not being able to close. You always want to close what you have under contract.
Hope this helps some.