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When buying your first home, you’ll hear about contingencies. They can sound complicated, but really, they’re just safety nets built into your purchase agreement.
What are contingencies?
Contingencies are conditions that must be met for a home purchase to move forward. If the conditions aren’t met, buyers often have the right to walk away without losing their earnest money.
Common contingencies include:
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Financing contingency: The purchase depends on loan approval.
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Inspection contingency: You can request repairs or cancel if major issues are found.
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Appraisal contingency: Protects you if the home’s appraised value is less than the purchase price.
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Sale of current home contingency: If you need to sell your home first.
Why do they matter?
Contingencies protect buyers from being locked into a deal if something major goes wrong. They also help balance risk between buyers and sellers.
Takeaway: Contingencies give first-time buyers peace of mind by ensuring you don’t commit to more than you can handle.
If you’re unsure which contingencies to include, I can guide you through writing an offer that keeps you protected.
