What Is a Contingency Offer, and How Does It Work

1. A Contingency Offer Comes With Built-In Conditions

A contingency in a real estate contract says: “We’ll buy this home, if these things happen.” Common contingencies include:

  • Home inspection: Gives you a chance to walk away if the home has major issues
  • Financing: Protects you if your mortgage doesn’t get approved
  • Appraisal: Ensures the home’s value matches the loan amount
  • Sale of current home: Lets you close only after selling your existing home

Contingencies aren’t dealbreakers—they’re deal protectors.

2. If the Contingency Fails, You Can Walk Away Without Penalty

Contingencies give you an exit strategy. If the home fails inspection, or your financing falls through, you can back out and keep your earnest money deposit.
Without contingencies, you could be on the hook financially, even if something goes wrong.

3. Use Contingencies Wisely in a Competitive Market

While contingencies protect you, too many can weaken your offer in a hot market. To stay competitive:

  • Focus on the most important contingencies (like inspection or appraisal)
  • Talk to your real estate agent about how to structure a strong, fair offer
  • Consider shortening contingency timeframes to reassure the seller

It’s all about balancing protection with negotiation power.

Want to Make a Smart, Safe Offer? Let’s Talk Contingencies

📘 Download our free “First-Time Buyer Game Plan” eBook — includes a full breakdown of common contingencies and when to use them
💬 Chat live now to ask which contingencies make sense in today’s market
📞 Schedule a call with a Stairway Mortgage advisor to help craft a winning offer without unnecessary risk

At Stairway Mortgage, we help you buy smart—
because the best offers protect your future, not just win the deal.

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