Buyers need to be familiar with the contingencies and what they mean in when they purchase the property. Most of them have no clue what this means.  Let's see what they exactly mean.

Inspection Contingency - What Is A Home Inspection Contingency?

An inspection contingency requires a professional home inspection within a certain time frame before a real estate contract can become legally binding. It ensures that the buyer receives vital information about the property and allows them to negotiate repairs, sale price, or even walk away with their earnest money altogether.

 In a nutshell, the inspections contingency gives the buyer the right to walk away from the deal and get their deposit money back if the buyers are not satisfied with the results of the inspections and cannot reach an agreement with the seller as to the repair of actual defects.

But waiving this contingency makes buyers lose that right. They are obligated to buy/close the property with no choice because they are waiving that Right/contingency in the executable contract. Regardless of the waiver, Buyers must get the property inspection done before they apply for the mortgage. Buyers should know what they are buying, what they are getting into, how much the expense involved, etc. The purchase of the property with all the dreams should not become a nightmare. 

As per the current market, contingencies like appraisal value and inspection are not acceptable to the Sellers. The market is very Hot, with little inventory in the market. It is Seller's market; having multiple offers in a very short time, the sellers have the leverage and choose not to accept with any contingencies. Demanding the buyers to buy the property ASIS and WHERE is BASIS. 

Appraisal Contingency:  What is Appraisal Contingency?

An appraisal contingency means that if your home doesn't appraise for the amount you have agreed to pay, you can walk away from the deal with your deposit reverted. 

Waiving the Appraisal contingency means buyers agree to pay all additional funds from their pocket over the appraised value. Because the mortgage lender lends the money only on the value, whichever is lower. Now the buyers need to have a very clear understanding of this so that they are aware of how much cash they need to have to buy the property because their LTV is based on their downpayment and the loan + Closing Costs + additional payment, which is the difference between the appraised and purchase values.