What Contingencies Should I Put in an Offer on a House?

Most buyers' offers include some mix of inspection, financing, and appraisal contingencies, and sometimes a home sale contingency. A contingency lets you cancel or renegotiate if something specific goes wrong. Which ones you keep is your call, and it should match your risk, not just your fear of losing the house.

What a contingency does

It's a condition in the contract. If the condition isn't met within the deadline, you may have the right to renegotiate or walk away, often with your deposit protected. Deadlines matter, so miss them and you can lose the protection. Your contract and your agent will spell out how this works in Maryland. Your contract will spell out the exact terms.

The common ones

• Inspection. Lets you have the home inspected and negotiate repairs or credits, or cancel. It protects you from hidden defects.
• Financing. Protects your deposit if your loan doesn't come through in the agreed time.
• Appraisal. Protects you if the home appraises below the price.
• Home sale. Makes your purchase depend on selling your current home. Sellers often view this as weaker.
• Other due diligence. Condo or HOA document review, sewer scope, or radon, depending on the property.

The trade-off: protection vs. competitiveness

In a busy market, sellers often prefer offers with fewer conditions. Shorter timelines or waived contingencies can look stronger. But every contingency you drop is risk you take on.

Questions I'd ask before waiving anything:

1. If this goes wrong, can I absorb the cost?
2. Is there a safer way to compete, such as a shorter inspection window, a higher deposit, or a cleaner offer in other ways?
3. What does my lender say about my timeline?

I'll never push you to waive protection. I'll show you the options and numbers, then you choose.

FAQ

Should I ever waive the inspection contingency?

Some buyers do in competitive situations. I'd talk it through carefully with you first.

What's a typical inspection period?

It varies by contract and market. We'll set what makes sense for your situation.

Does a financing contingency make my offer weaker?

It can look weaker to some sellers. A strong preapproval helps.

Can a seller object to my contingencies?

Yes. Offers are negotiated.

Next step

Read about my inspection resources and buyer resources, or reach out before you write an offer. Want to run your numbers with me? Grab a free 15-minute call at calendly.com/michaelwaderealtor/15min. No pressure.