Newsflash: Looking for some advice on waiving the appraisal condition in our offer [CO]

Hey guys,I just made an offer on a house in Colorado, and the seller has come back asking us to waive our appraisal condition. As a bit of background, the area I’m in is definitely a sellers market – we offered 102% of asking on this house with 5% down and a 30 day closing. The seller got 4 offers on the first day, with one other offer at the same price as ours, 50% down, but a 60 day closing. The seller prefers our timeline but has asked us to waive the appraisal condition given that we’re only putting 5% down.Now, I’m prepared to walk if the house doesn’t appraise at our offered price – I don’t have the cash to cover the difference and I don’t want to borrow money from family. My broker says that I can still walk if the house doesn’t appraise, even if I’ve waived the appraisal condition, as I can terminate based on loan conditions. In reading the contract, this seems to be true – the loan conditions are so broadly in favor of the buyer, I don’t doubt that I could get away with that. According to my broker, this is standard practice and wouldn’t be an issue. It also seems pretty clear that we’ll get the house if we waive this condition, and they’ll likely go with the other buyers if we don’t.The problem that I have is it just feels disingenuous to waive the appraisal condition with the intention of still walking if the appraisal comes in low. The way I see it, waiving the appraisal condition servers to tell the seller “I will come up with additional cash and still close if the appraisal comes in low.” That’s not my intention here, so it seems deceitful to me to waive this condition. Thus, I’m hoping to get some input here on how wrong it would be to waive the appraisal here and then terminate on loan conditions if the appraisal comes in low.Here’s the relevant appraisal and loan conditions from my offer:Appraisal Condition Buyer has the right to obtain an Appraisal. If the Appraised Value is less than the Purchase Price, or if the Appraisal is not received by Buyer on or before Appraisal Deadline Buyer may, on or before Appraisal Objection Deadline, notwithstanding § 8.3 or § 13:Notice to Terminate. Notify Seller in writing that this Contract is terminated; orAppraisal Objection. Deliver to Seller a written objection accompanied by either a copy of the Appraisal or written notice from lender that confirms the Appraisal value is less than the Purchase Price.Appraisal Resolution. If an Appraisal Objection is received by Seller, on or before Appraisal Objection Deadline, and if Buyer and Seller have not agreed in writing to a settlement thereof on or before Appraisal Resolution Deadline (§ 3), this Contract will terminate on the Appraisal Resolution Deadline, unless Seller receives Buyer’s written withdrawal of the Appraisal Objection before such termination, i.e., on or before expiration of Appraisal Resolution Deadline.Loan Condition If Buyer is to pay all or part of the Purchase Price with a New Loan, this Contract is conditional upon Buyer determining, in Buyer’s sole subjective discretion, whether the New Loan is satisfactory to Buyer, including its availability, payments, interest rate, terms, conditions, and cost of such New Loan. This condition is for the sole benefit of Buyer. Buyer has the Right to Terminate under § 25.1, on or before Loan Objection Deadline, if the New Loan is not satisfactory to Buyer, in Buyer’s sole subjective;dr Broker is recommending that I waive appraisal conditions under the pretense that I can still terminate under loan conditions if the appraisal comes in low. This doesn’t feel right to me.Edit: Formatting



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