Process
Contingency
A condition written into a purchase agreement that must be met before the sale can close. Common contingencies include a satisfactory home inspection, a successful appraisal, and the buyer obtaining mortgage financing. If a contingency is not met, the buyer can usually back out of the deal without losing their earnest money. Waiving contingencies can make an offer more competitive but increases the buyer's risk.
Why It Matters
Contingency is one of the steps you will encounter on the path from house hunting to holding the keys. Knowing what to expect at each stage reduces stress and helps you make better decisions under time pressure.
Stay organized and communicate proactively with your real estate agent, lender, and other professionals involved in contingency. Delays and misunderstandings at any step can push back your closing date or cost you money.