Redfin

JUNE 23, 2025

If the home inspection reveals major problems, the buyer can request repairs, negotiate credits, or even walk away depending on the contract. Home appraisal If the buyer is financing the home, the lender will usually require a home appraisal to ensure the home’s value supports the loan amount.

Due diligence

Rochester Real Estate

NOVEMBER 5, 2015

If you made an offer and then found there were significant structural problems, you would be in trouble without a home inspection contingency. Financing Even if you are preapproved for a mortgage when you make an offer, you could still have problems getting a loan from your lender when you need it.

Earnest money deposit

Redfin

MARCH 18, 2025

This is more common with VA loans or USDA loans, which require no down payment. Youre using a no-down-payment loan. If youre using a VA or USDA loan, you dont have to make a down payment. If your down payment is already covered, the earnest money can help pay for lender fees, title fees, and other closing expenses.

Closing

Redfin

JULY 10, 2025

You back out due to a contingency → you get your earnest money back Most purchase agreements include contingencies that let you cancel without losing earnest money. Inspection contingency: If inspections reveal major problems and you back out within the agreed timeframe, you get your earnest money refunded.

Due diligence

Redfin

MARCH 4, 2025

Government-owned properties Some mortgages are government-backed, like VA loans and FHA loans. If a buyer with a government-backed loan goes into foreclosure, the government will take control of the property. Short sales occur when a homeowner sells their home for less than what they owe on the mortgage loan.

Pre-approval

Redfin

JULY 9, 2025

It’s best to shop around to find the best rate and determine the best type of mortgage loan for you. Schedule a home inspection Estimated time: 1 week The home inspection is crucial as it allows you to uncover any material defects or necessary repairs before purchasing the home. Don’t just default to your current bank.

Pre-approval

The Close

MARCH 11, 2025

Various financing options exist for FSBO properties, like traditional mortgages, hard money loans, and private investors. Options for short-term FSBO financing include: Hard money loans: These loans are tailored to investors to help facilitate the purchase of properties with the intent for immediate resale or eventual refinancing.

Sales

Rochester Real Estate

NOVEMBER 5, 2015

Saving a Down Payment While many home loan options allow low down payments, this will mean additional costs. If major issues are highlighted in the inspection report, you can negotiate with the seller over repairs, or they could credit you. You don’t want to be denied the loan after being approved.

Purchase and sale agreement

Redfin

JUNE 17, 2025

The steps of the due diligence period can include any of the following: Home inspection Pest inspection Appraisal Negotiation of closing costs Title search and title insurance Renegotiations (if applicable due to home inspection) During this period before settlement, the buyer and seller are able to continue negotiations.

Closing

Redfin

JULY 21, 2025

Common contingencies include: Financing contingency: Protects buyers if they can’t secure a mortgage loan. This contingency ensures the buyer isn’t penalized if a lender denies their loan application. Home inspection contingency : Allows termination if major issues are found during the inspection.

Earnest money deposit

Rochester Real Estate

NOVEMBER 5, 2015

When a home seller gets an offer that doesn’t have a home inspection contingency to complete the sale, they often jump on it. Should a potential buyer want an inspection they will hesitate to buy with those issues. Not all sellers are ethical in their behaviors either.

Inspection

Redfin

JULY 11, 2025

These protections usually come in the form of contingencies , which are clauses that allow you to walk away from the sale without penalty if certain conditions aren’t met. Buyer is unable to secure financing A financing or mortgage contingency protects buyers if they’re unable to get approved for a home loan.

Earnest money deposit

HomeLight

FEBRUARY 20, 2025

As of December 2024, 18% of buyers waived the appraisal contingency , with other buyers waiving, for example, inspection contingencies to likewise make their offers more enticing to sellers. The appraisal contingency is there to protect the buyer in case of any issues surrounding your appraisal.

Inspection contingency

Keeping Current Matters

NOVEMBER 30, 2020

The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. There are, however, certain contingencies you don’t want to forego. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”. Bottom Line.

Inspection contingency

Keeping Current Matters

MARCH 15, 2021

The best way to know this is to get pre-approved for a loan early in the homebuying process. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”. Understand Your Finances. Having a complete understanding of your budget and how much house you can afford is essential.

Inspection contingency

Keeping Current Matters

JUNE 21, 2021

That’s why you should connect with a lender to get pre-approved for a loan early in the homebuying process. Just remember, there are certain contingencies you don’t want to forego. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”. Know Your Numbers. Bottom Line.

Inspection contingency

Keeping Current Matters

SEPTEMBER 15, 2021

The best way to understand your numbers is to work with a lender so you can get pre-approved for a loan. Of course, there are certain contingencies you don’t want to give up, like the home inspection. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”.

Inspection contingency

HomeLight

JANUARY 12, 2024

If you’ve been shopping for a home, you’ve likely come across the term “loan contingency,” and you may be considering including this clause in your purchase offer. Or perhaps you’ve already made a loan-contingent offer, and you’re wondering about contingency removal. What is a loan contingency?

Loan contingency

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. Clear the title.

Closing

Realty Biz

AUGUST 3, 2020

markets waived the inspection contingency , compared to just 13.2% of successful offers also waived the appraisal contingency, up from 17.4% The inspection contingency allows the buyer to cancel a purchase or request repairs are made to the property following a home inspection. “I who did so in June 2019.

Inspection contingency

HomeLight

JUNE 9, 2023

Most real estate contracts — or roughly 80% — contain contingencies , according to data from the National Association of Realtors (NAR). As of 2023, 79% of contracts included an inspection contingency while 82% contained an appraisal contingency. What are the most common contingencies?

Home sale contingency

HomeLight

JANUARY 31, 2024

Here are some of the most common contingencies you might encounter: Home sale contingency: This allows the buyer a specified amount of time to sell their current home. Inspection contingency: This gives the buyer the right to have the property inspected within a certain timeframe.

Purchase and sale agreement

HomeLight

SEPTEMBER 6, 2024

Generally, an appraisal contingency protects a buyer when a home they’ve made an offer on appraises for less than the amount the buyer offered to pay. Appraisal contingencies are just one type of contingency. Other types include a sales contingency , financing contingency, and inspection contingency.

Inspection contingency

HomeLight

DECEMBER 30, 2023

Contingencies while ‘under contract’ Here are some common types of contingencies in residential home sales: Financing contingency: A financing or mortgage contingency safeguards buyers who need to finalize a home loan. If the buyer fails to secure financing, they can withdraw without losing their deposit.

Home sale contingency

HomeLight

JANUARY 31, 2025

What fixes are mandatory after a home inspection? Although 20% of buyers waived inspection contingency , you may still be obligated to resolve certain issues, depending on your states and the buyers lenders policies. For instance, purchasers using FHA , VA , or USDA loans each have particular requirements.

Inspection

HomeLight

OCTOBER 30, 2020

Maybe you aren’t using a loan, but you can still run into cash flow issues. Real estate contract contingencies are commonly associated with getting a mortgage, as lenders tend to do their due diligence on a property before they’ll put up the money for it. “Wait a minute,” you’re probably thinking.

Closing

HomeLight

NOVEMBER 8, 2024

This can mean that the buyer’s financing is approved, the inspection contingency is met, or any appraisal concerns are resolved. More on contingencies in a minute.) If the loan falls through, they can exit the deal without losing their deposit. Why might a home be listed as pending?

Inspection contingency

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

Windemere Buying

APRIL 12, 2023

Mortgage lenders offer different home loans to match what buyers can afford and what homes they’re looking to purchase. Mortgage Broker Your mortgage broker will work with you to find favorable mortgage terms for your home loan. Once you’ve chosen the right loan product, they’ll hand things off to the lender.

Pre-approval

Point2Homes

DECEMBER 8, 2020

In this case, even though contingencies are still pending, the seller has decided that they will forego any more showings. Short sales occur when the seller will accept a lower amount than is remaining on their home loan. Common Contingencies Found in Real Estate Contracts. Short Sale.

Purchase and sale agreement

HomeLight

JANUARY 13, 2022

Inspection contingencies. Inspection contingencies mean that a buyer can get a home inspected before the deal goes through, and can back out of the purchase with earnest money intact, depending on what the inspector finds. Inspection contingencies can be waived. Appraisal contingencies.

Backup offer

HomeLight

JULY 31, 2020

To be clear, an all-cash offer means you won’t be getting a mortgage loan for any portion of the sale. This is important: if your real estate agent puts in an all-cash offer on your behalf, they will not include a financing contingency. The seller makes decisions based on the terms of your offer, including contingencies.

Purchase and sale agreement

HomeLight

NOVEMBER 29, 2021

An appraisal contingency protects the buyer because it allows you to back out from the contract if the appraised value doesn’t meet the agreed purchase price. A financing contingency, sometimes called a mortgage contingency, is put into place to give the buyer time to secure financing for their home purchase.

Purchase and sale agreement

Norada Real Estate

APRIL 15, 2023

Additionally, the type of financing being used, such as FHA or VA loans, can also impact the length of the under-contract period. Home Inspection Contingency One of the most common contingencies that can affect the length of the under-contract period is the home inspection contingency.

Earnest money deposit

Realty Biz

OCTOBER 12, 2021

Another big danger associated with maintenance costs is that it has become increasingly more common for buyers to waive the home inspection contingency to try and get their offer accepted. According to the NAR, 23% of buyers waived inspections in August. Doing so can lead to expensive, unexpected repairs later.

Inspection contingency

HomeLight

JANUARY 3, 2024

After you open escrow and the buyer submits a good faith earnest money deposit, some or all of the following contingencies may need to be addressed: The financing contingency will appear in contracts where a buyer needs to finalize a mortgage loan to purchase the home.

Purchase and sale agreement

Redfin

AUGUST 26, 2020

In case you’re thinking of waiving the home inspection contingency, you should also be aware that some lenders require a home inspection as a necessary step before they finalize your home loan. Home inspectors generally use a home inspection checklist to look for damage or other causes of concern. Local laws.

Inspection