Buying a Home? Here’s What You Need to Know About Contingencies
If you’ve started exploring homes or preparing to make an offer, you’ve probably come across a word that can sound a little intimidating: contingencies.
But don’t worry. Contingencies aren’t just technical jargon—they’re important protections built into your offer, and knowing how they work can help you feel more confident as a buyer.
So let’s take a closer look at what contingencies are, why they matter, and how to navigate them, especially in a competitive market like Ventura County.
What Exactly Is a Contingency?
A contingency is a clause in your purchase offer that gives you the right to back out of the contract under certain conditions, without losing your earnest money deposit. In short, it’s your safety net.
Most real estate offers include at least a few key contingencies. These create a window of time for you to do your due diligence on the home before you’re fully committed.
Common Types of Contingencies (And Why They Matter)
Here are the ones most buyers should know:
1. Inspection Contingency
This allows you to hire a home inspector and review the condition of the property. If major issues are uncovered, you can negotiate repairs, request credits, or cancel the deal without penalty.
✅ Why it matters: Even beautiful homes can hide problems. This contingency protects you from unexpected repair bills down the line.
2. Appraisal Contingency
If you’re financing your purchase, your lender will require an appraisal to ensure the home is worth the agreed price. If it appraises low, this contingency lets you renegotiate—or walk away.
✅ Why it matters: You don’t want to pay more than a home is worth, especially when your loan amount depends on that appraised value.
3. Loan (Financing) Contingency
This clause gives you time to finalize your mortgage. If your loan falls through, you can cancel the contract without losing your deposit.
✅ Why it matters: Even pre-approved buyers can hit snags. This gives you breathing room to secure your financing.
4. Sale of Current Home Contingency
For buyers who need to sell their current home before buying another, this clause allows the purchase to move forward only if your current home sells within a certain timeframe.
✅ Why it matters: It protects you from owning two homes at once—or from losing out on a new home because yours hasn’t sold yet.
Should You Ever Waive a Contingency?
In a hot market, some buyers feel pressured to waive contingencies to make their offer more attractive. And yes, removing contingencies can strengthen your offer—but it also increases your risk.
Before waiving anything, ask yourself:
- How competitive is the home I’m offering on?
- Am I comfortable taking on repairs?
- Can I cover a low appraisal difference out-of-pocket?
- Is my financing 100% secure?
This is where having an experienced agent matters. I’ll help you evaluate the situation and craft a strong offer that balances competitiveness with protection.
How Long Do Contingencies Last?
Most contingency periods range from 7 to 21 days, depending on the type and what’s customary in Ventura County at the time.
We’ll review the timeline closely to make sure everything stays on track—from scheduling inspections to meeting lender deadlines—so you don’t miss a step.
Contingencies Create Confidence
At the end of the day, contingencies aren’t about making your offer weaker—they’re about making sure your investment is a sound one. Whether you’re buying your first home or upgrading to your next one, understanding contingencies will help you feel informed, empowered, and in control.
And when the time comes to write that offer, I’ll be right there with you—walking through your options, protecting your interests, and helping you make the right move for you.
Ready to start home shopping? Let’s connect. We’ll talk strategy, protection, and how to make your offer stand out in any market.
