Buying A House? These 4 Contingencies Could Save You Thousands!

Home Buying Contingencies

Buying your first home? Congratulations! 🏡 Whether you’re just getting started or already have your dream home in sight, understanding how to protect yourself during the homebuying process is key—and that’s where contingencies come in.

If you’ve been hearing the word “contingency” and wondering what it actually means, let me break it down. When you make an offer on a home, a contingency is a clause that allows you to back out or renegotiate the contract if certain conditions aren't met. Think of them as your safety nets during the process.

The 4 Contingencies That Could Save You Thousands!

Let’s walk through the 4 big contingencies that most buyers include in their offer:

1. 🛠 Home Inspection Contingency

This is a big one—and for good reason. A home inspection gives you a professional’s eye on the condition of the property. If the inspector finds major issues like foundation problems, roof damage, or outdated electrical systems, the inspection contingency gives you the right to negotiate repairs, ask for a credit, or even walk away if needed.

💡 Pro tip: Even in a competitive market, try not to skip the inspection. You’ll want to know what you’re buying, especially if it's your first home.

2. 💰 Appraisal Contingency

If you're using a mortgage to buy the home, your lender will require an appraisal. This is to make sure the home is worth what you’ve offered to pay. If the appraised value comes in lower than your offer, the appraisal contingency gives you the chance to renegotiate with the seller or walk away without losing your deposit.

💡 Heads up: In hot markets, some buyers waive this contingency to be more competitive—but it’s a risk you should fully understand before going that route.

3. 🏦 Financing Contingency

Unless you're paying all cash, this contingency protects you in case something goes wrong with your mortgage approval. If you're pre-approved but then something changes—like a job loss or an unexpected financial hiccup—and you can’t secure the loan, this clause allows you to cancel the contract without penalty.

💡 Tip: Always talk to your lender and make sure your financial documents are in order before house hunting!

4. 🏠 Home Sale Contingency

This one isn’t as common, but it’s incredibly helpful if you already own a home. A home sale contingency means your purchase depends on successfully selling your current home. It gives you the peace of mind that you won’t be stuck owning two houses (and two mortgages!) at once.

💡 Note: Sellers may be less inclined to accept this contingency, so have a game plan and talk strategy with your agent if this is something you need.

Contingencies are all about balancing protection and competitiveness, and these 4 contingencies can help you savie thousands! As a buyer, you want to feel confident you're making a smart investment—while also giving the seller a strong offer. That’s why having a knowledgeable real estate agent (👋 hi!) on your side makes all the difference.

Want to hear more? 🎥 Be sure to check out my video where I explain each of these contingencies in everyday language and give tips on how to approach them in today’s market.

Need help navigating your first offer? I’d love to walk you through the process and answer all your questions. Reach out anytime—I'm here to help! 💬