What risk does a cash buyer take when waiving the appraisal to enhance their full-price offer?

When a cash buyer waives the appraisal, they are essentially foregoing a critical step in the buying process that could reveal the true market value of the property. This creates a significant risk, as the buyer may end up paying more than the property's actual worth. By waiving this safeguard, the buyer exposes themselves to the possibility that the property is overvalued in comparison to what the market would suggest.

In the event that the property is indeed worth less than the list price, the buyer could face potential financial loss, as they have committed to purchasing the property at a higher price without an appraisal validation. This scenario emphasizes the importance of appraisals in ensuring that buyers are making informed purchase decisions based on an accurate assessment of property value. By opting to waive the appraisal, the buyer takes on the risk of overpaying significantly for the property if its market value does not align with the listing price.