Contingent Offer
A contingent offer is a purchase agreement that includes one or more conditions — called contingencies — that must be met before the sale can be finalized.
Common contingencies include financing (the buyer must secure loan approval), appraisal (the property must appraise at or above the purchase price), and inspection (the buyer has the right to inspect the property and negotiate repairs or cancel if major issues are found). Learn more about the difference between inspections and appraisals.
Contingencies protect the buyer by providing legal exit points if certain conditions are not met. However, in a competitive market, sellers may favor offers with fewer contingencies because they carry less risk of the deal falling through. Your buyer's agent can help you decide which contingencies to include.
Why This Matters: Understanding which contingencies to include — and which you may consider waiving — is a strategic decision. Your agent and lender can help you weigh the risks so your offer is both competitive and protected.
Common question
What are the most common contingencies in a home purchase?
Financing, appraisal, and inspection are the most common. Each gives you a legal way to exit the contract if the condition is not met — protecting your earnest money.
Should I waive contingencies to make my offer stronger?
Waiving contingencies can strengthen your offer in a competitive market, but it removes your protection. Discuss the risks with your agent and lender before making that decision.
Related Mortgage Terms
Not sure which contingencies to include in your offer? We can help you balance protection with competitiveness.
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