Contingencies protect you if certain conditions aren’t met. The most common contingencies are inspection, financing and appraisal. An inspection contingency allows you to renegotiate or back out if significant defects are discovered. A financing contingency gives you time to secure final mortgage approval. An appraisal contingency ensures the property’s appraised value meets or exceeds the purchase price. Depending on your situation, you might also include a home‐sale contingency (if you need to sell your current home first) or a title contingency (to resolve liens). Keep in mind that fewer contingencies make your offer more attractive, but removing them increases risk.

Discuss the best strategy with your agent, and learn more about preparing strong offers on our Get Pre‐Approved page.