What contingencies should I keep when buying a home
Contingencies are safety nets written into your offer. They let you cancel or renegotiate if major issues appear before closing. Here’s what each one does and how to decide which are worth keeping.
Inspection contingency
This allows you to hire a home inspector and request repairs or walk away if you find serious problems. It’s one of the most important protections you can have — even in competitive markets.
Tip
If competition is fierce, you can keep the inspection contingency but shorten the timeline (for example, five days instead of ten) instead of removing it entirely.
Financing and appraisal contingencies
These protect you if your loan is delayed or the home appraises for less than your offer. Without them, you could lose your deposit even if you can’t get final approval.
Contingencies that often make sense to keep
- Home inspection — Reveals structural or safety issues before closing.
- Financing — Protects if your lender denies or delays approval.
- Appraisal — Ensures you’re not overpaying above fair market value.
- Title and insurance review — Confirms no liens or ownership disputes.
Contingencies you might waive carefully
In some hot markets, buyers consider waiving appraisal or inspection, but only after consulting their agent and lender. You can sometimes soften risk by getting pre-inspections or adding specific repair limits.