Sellers will always favor offers with fewer and shorter contingencies. Without them, the buyer cannot back out of a transaction without losing their deposit.
The most common contingencies:
- Inspection Contingency– Lets you cancel if the inspection turns up major problems a seller is unwilling to repair or give price reduction credits.
- Appraisal Contingency– Lets you back out if the appraised value of the property is less than the current fair market value.
- Loan Contingency– Lets you get your earnest money back if your financing falls through and you have to cancel the offer.
- Home Sale Contingency – Gives you a buying “out” if your current home fails to sell.