Inspection contingency
Allows the buyer to complete due diligence under the terms and timeline of the purchase agreement.
Real estate contingencies
Contingencies allocate risk between buyer and seller.
Contingencies can give a buyer time or contractual rights to evaluate financing, appraisal, inspection, or other conditions before being fully committed.
Appraisal contingency
Can address the risk that the lender's appraised value is below the contract price.
Loan contingency
Can provide protections related to obtaining financing within agreed terms and timelines.
Sale contingency
Can make the purchase dependent on the buyer selling another property.
Competitive tradeoff
Reducing contingencies may strengthen an offer while increasing buyer risk.
Strategy
The right contingency structure depends on market conditions, financing strength, property risk, and the buyer's tolerance for exposure.