Under Appraised

 
When putting an offer on a house that is priced above market value or on a house that may not appraise, it is unnecessary to put in writing the condition in the offer stating, “based on satisfactory home appraisal.”
The caveat is not useful in this case in the least, because if the home does not appraise, then the bank is not going to write the loan in the first place. If you can’t get the loan, then you won’t get the loan commitment, which ultimately means that the deal will die. The buyer’s money is not put at risk because they got denied the loan. If there is an offer at $399,000 and the home appraises at $375,000, the buyer is not obligated to move forward unless they want to make up the deficit in cash out of their own pocket or if the seller wants to bring down their asking price.
Consequently, putting “based on appraisal” in writing in an offer is redundant because a house has to appraise or the bank simply won’t lend the money.