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What Are the Main Contingencies in an Offer?

Here are the four homebuyer contingencies you should know about.

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There are four main contingencies in a real estate contract: financing, inspection, appraisal, and home sale.

Fundamentally, all four of these contingencies include varying degrees of risk. Some are a lot more common and carry less risk, like mortgage and appraisal contingencies. Some are less common and carry much more risk, like a home sale contingency.

Many buyers who are making offers on homes today need to buy with a mortgage. This means their offer will include a mortgage contingency, which then naturally triggers an appraisal contingency.


“Financing and appraisal contingencies are very common.”


It’s a really competitive market out there, so you might see fewer home sale contingencies than usual. The home sale contingency means the buyer needs to sell their own home first in order to buy yours. This kind of contingency carries more risk to you as a seller.

It’s really important to look at your specific situation and determine what’s more important to you: time or money. It’s also important to have a licensed professional on your side to guide you through the process and identify all the contingencies in each offer that you receive for your home.

If you have any questions about selling, buying, or real estate in general, don’t hesitate to reach out via phone or email. We’d be happy to provide you with a complimentary risk assessment.

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