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 a key milestone in the homebuying process. The typical purchase takes 30-60 days from accepted offer to closing, and each step — including contingency — has specific timelines, requirements, and potential pitfalls. Being prepared for each phase prevents costly delays.
During contingency, communication with your real estate agent, lender, and other professionals is critical. Respond to requests quickly, keep documents organized, and ask questions if anything is unclear. Delays at any step can jeopardize your closing date or purchase agreement.
Real-World Example
In a typical home purchase, contingency occurs within a specific window. Missing deadlines related to contingency can result in contract violations, lost earnest money, or even a failed transaction. Stay ahead of schedule.
Pro Tip
Create a homebuying timeline checklist and mark every deadline related to contingency. Set calendar reminders 2-3 days before each due date so you're never scrambling at the last minute.