Redfin

JUNE 27, 2025

Don’t skip critical steps like the home inspection or negotiating closing costs. Skipping the home inspection Some people waive the home inspection to speed up the buying process, but skipping this step can be costly in the long run. An inspection typically costs between $300 and $500, and it’s well worth the investment.

Pre-approval

Redfin

JULY 11, 2025

Buyer is unable to secure financing A financing or mortgage contingency protects buyers if they’re unable to get approved for a home loan. If this happens and they’ve included the right contingency, the buyer can usually walk away with their earnest money deposit.

Earnest money deposit

Redfin

MARCH 18, 2025

So, while you dont get a check for the amount you put down, the money is still going toward the home purchase. If your earnest money deposit is higher than your required cash-to-close amount, youll get the excess back. If you back out for one of these protected reasons, youll get your earnest money back.

Closing

Redfin

JULY 10, 2025

Earnest money is a refundable deposit held in escrow to show your serious intent to buy, while due diligence fees are usually non-refundable payments made directly to the seller to secure time for inspections and evaluations. Whether earnest money is refundable depends on the contingencies in the purchase agreement.

Due diligence

Redfin

JULY 21, 2025

Contingencies provide legal exits for specific situations. Backing out without cause may result in losing your earnest money deposit. Common contingencies include: Financing contingency: Protects buyers if they can’t secure a mortgage loan. When is an ideal time to back out?

Earnest money deposit

Redfin

JULY 9, 2025

Decide on important terms like earnest money deposits, contingencies (inspection, financing), and closing dates that can make your offer stand out. During this time, your lender will finalize your mortgage, the home will be appraised and inspected, and a title search will be conducted.

Pre-approval

Rochester Real Estate

NOVEMBER 5, 2015

If your offer is accepted, you will sign a purchase agreement and pay an earnest money deposit. Home Inspection The home inspection will show if this is a property you want to buy. If major issues are highlighted in the inspection report, you can negotiate with the seller over repairs, or they could credit you.

Purchase and sale agreement

Housing Wire

SEPTEMBER 9, 2024

Like with the amount of earnest money deposit or including an inspection contingency, the amount the buyer is asking the seller to pay her agent is a term that impacts the strength of the offer,” Redfin chief economist Daryl Fairweather said in a statement.

Earnest money deposit

HomeLight

JANUARY 26, 2024

For this reason, most contracts contain an inspection contingency clause. But what happens if the inspection contingency expires? If this contingency period lapses before you’ve finalized your decisions, will you lose your deposit? Get Started How does an inspection contingency work?

Inspection contingency

Realty Biz

DECEMBER 5, 2022

One of the most vital phases of buying a house is having it inspected. Home inspections over the last few years were few and far between. The crazy hot seller's market forced many home buyers into forgoing their inspection. It has led to home inspections coming back in vogue again.

Inspection

Realtor.com

SEPTEMBER 18, 2020

When we finally did go under contract on this third home, we learned of another issue: Home inspectors in the area were booked for two weeks and up, but our contract stated that we had only seven days to get an inspection done. We got lucky, but it left me wondering: Is it ever OK to waive a home inspection?

Inspection

HomeLight

JANUARY 10, 2024

Most purchase agreements are contingent on two key items: home inspection and financing. As a homebuyer, knowing what these contingencies mean for you and the seller can help you make decisions with more confidence and avoid unexpected surprises and pitfalls. Most purchase agreements are contingent on which two items?

Earnest money deposit

Realtor.com

OCTOBER 29, 2020

These are the most common contingencies that are part of your new home closing process: Home inspection contingency: This gives buyers the right to have the home professionally inspected. It’s rarely advisable to waive an inspection contingency. Your home inspection reports.

Closing

Dwell Real Estate

JULY 10, 2020

The earnest money deposit—the cash you as a buyer offer to essentially call dibs on real estate—is one of the most important (and often misunderstood) parts of the home-buying process. In the Sarasota area, home buyers will usually put down anywhere from 1 to 5 of the real estate purchase price as earnest money. (If

Earnest money deposit

Dwell Real Estate

JULY 10, 2020

The earnest money deposit—the cash you as a buyer offer to essentially call dibs on real estate—is one of the most important (and often misunderstood) parts of the home-buying process. In the Sarasota area, home buyers will usually put down anywhere from 1% to 5% of the real estate purchase price as earnest money. (If

Earnest money deposit

Realty Biz

FEBRUARY 20, 2021

The home buying contingencies below should be completely understood before signing on the dotted line of a purchase and sale agreement. Home inspection: often called a due diligence contingency, will give the buyer rights to have the house inspected. Most buyers will have a home inspection contingency in their contract.

Purchase and sale agreement

HomeLight

JANUARY 3, 2024

To fully understand what “under contract” means, let’s take a look at some of the contingencies that might be attached to such a listing. There are four common types of real estate contract contingencies.

Purchase and sale agreement

HomeLight

JANUARY 12, 2024

They are essentially clauses in your purchase agreement that are designed to protect you from unforeseen issues, like problems unearthed during a home inspection or difficulties securing financing. What is a loan contingency?

Loan contingency

HomeLight

OCTOBER 1, 2020

You now have skin in the game in the form of your earnest money deposit, plus you have a legal duty to buy the home (barring certain circumstances). According to the latest data from the Realtors Confidence Index (RCI), 76% of purchase contracts contain contingencies , and around 7% of contracts are terminated.

Earnest money deposit

HomeLight

SEPTEMBER 11, 2020

Determine how much earnest money to offer. An earnest money deposit (also called a “good faith deposit”) is money that accompanies your offer and communicates your seriousness to the seller. The customary amount to put down as an earnest money deposit will vary based on your market.

Earnest money deposit

Norada Real Estate

APRIL 15, 2023

Home Inspection Contingency One of the most common contingencies that can affect the length of the under-contract period is the home inspection contingency. This contingency allows the buyer to have the home inspected and negotiate repairs or credits with the seller.

Earnest money deposit

HomeLight

JULY 26, 2022

In a best case scenario, negotiations go smoothly, the inspection doesn’t reveal any major issues, the appraisal comes in right where it should, and the whole process is very efficient (we’ll get into what could create some hiccups later on). When you make an offer, be sure to include any contingencies that you want fulfilled.

Earnest money deposit

HomeLight

OCTOBER 30, 2020

Problems come up during inspection. One of the big benefits of cash that’s constantly touted is that it allows you to remove contingencies from the deal. Contingencies are clauses in real estate contracts stipulating that certain conditions must be met before the deal can close.

Closing

HomeLight

NOVEMBER 29, 2021

But first, you have to sell your old home, potentially secure financing, and secure a home appraisal (and likely an inspection) on your new house. Most purchase agreements have some terms in place that must be met for the deal to go through, such as having a home inspection completed. Inspection contingency.

Purchase and sale agreement

HomeLight

MARCH 2, 2023

While it is not always recommended to completely waive contingencies to impress a seller, you might consider pairing down to just the inspection contingency and financing contingency to remain competitive. Your agent can recommend a licensed home inspection company if you don’t have one.

Closing

Realty Biz

APRIL 20, 2022

Common Contingencies Found in an Offer to Purchase. Home Inspection Contingency. One of the most common terms in an offer is the home inspection contingency clause. This contingency gives you a way to back out of the deal with your earnest money if the home inspector finds some serious issues.

Purchase and sale agreement

RIS Media

MAY 19, 2021

Not all sales will have contingencies with them, but most will. Common real estate contingencies include the following: Inspection Contingencies. The most common contingency is the home inspection contingency. The home inspection can lead to some delays in the process, too, for around 10% of cases.

Purchase and sale agreement

HomeLight

SEPTEMBER 1, 2022

While it is not always recommended to completely waive contingencies to impress a seller, you might consider pairing down to just the inspection contingency and financing contingency to remain competitive. Earnest money deposit amount. Contingencies: Financing, home inspection, and appraisal.

Earnest money deposit

HomeLight

SEPTEMBER 22, 2020

260,000 offer with financing and inspection contingency, 60-day close. 248,000 offer with all contingencies waived, 30-day close. 250,000 offer with financing and inspection contingency, largest earnest money deposit , 60-day close. So, which one is the best offer?

Earnest money deposit

HomeLight

MARCH 6, 2023

While it is not always recommended to completely waive contingencies to impress a seller, you might consider pairing down to just the inspection contingency and financing contingency to remain competitive. Your agent can recommend a licensed home inspection company if you don’t have one.

Earnest money deposit

HomeLight

SEPTEMBER 1, 2022

While it is not always recommended to completely waive contingencies to impress a seller, you might consider pairing down to just the inspection contingency and financing contingency to remain competitive. Earnest money deposit amount. Contingencies: Financing, home inspection, and appraisal.

Earnest money deposit

HomeLight

JULY 31, 2022

The template will include your offer price, down payment amount, earnest money deposit, contingencies, and desired closing date. Earnest money , also referred to as a “good faith deposit,” is an amount that a buyer agrees to pay the seller to indicate their seriousness about buying the property.

Earnest money deposit

Point2Homes

DECEMBER 23, 2021

Therefore, holding the buyer’s funds in escrow encourages them to continue with the deal because their money is at risk. Most likely, the buyer will then be expected to make an earnest money deposit fairly quickly, which will go into an escrow account until closing. Escrow Before You Buy.

Earnest money deposit

First Team Real Estate

AUGUST 8, 2021

Approximately 25% of all escrows fall through because of inspection contingencies, lending hiccups, appraisal surprises, and more. If there are results of an inspection they are mulling over, accepting a backup offer will give your home the allure of being wanted. Will backup offers have to submit earnest money?

Backup offer

Realty Biz

AUGUST 22, 2022

I didn’t even include an inspection contingency. I’m almost certain that your biggest concern is about what will happen with your earnest money if you back out of the deal. As the buyer, you submit an earnest money deposit when you make an offer on a home. Now I have buyer’s regret.

Purchase and sale agreement

Realty Biz

NOVEMBER 11, 2020

If these contingencies aren’t met, the buyer can walk away from the deal. They will also get their earnest money deposit back , and the home will go back on the market. The home could be subject to a few different types of contingency. Home Inspection Contingency.

Backup offer

HomeLight

JULY 31, 2021

Earnest money deposit. As is the case with a regular retail home purchase, a cash buyer should provide an earnest money deposit (EMD) as a show of good faith that they will indeed purchase the property. Inspection period. Step 6: Pass the inspection. Source: (Emil Kalibradov / Unsplash).

Earnest money deposit