What contingencies should I consider including in my offer?

Understand how contingencies protect buyers

Contingencies are conditions written into a purchase agreement that must be satisfied for the transaction to proceed as agreed. According to NAR, common contingencies concern financing, appraisal, inspections, and the sale of an existing home. Their value depends on the property, your finances, and the risks you are prepared to accept. An inspection contingency, for example, may provide time to investigate the home’s condition and act on the findings under the agreement. A mortgage contingency may protect the buyer when the required financing cannot be obtained, provided its requirements are met. Each contingency should be written with clear terms and deadlines.

Review financing, appraisal, and property risks

An appraisal contingency can be important if the property appraises below the purchase price and the lender reduces the available loan amount. Buyers who need proceeds from another property may consider a home-sale or home-closing contingency. Other protections can address title, insurance, or association-document review when applicable. Not every offer needs every contingency. A buyer purchasing with cash may have different concerns than someone relying on a mortgage. Likewise, an older home with uncertain systems may justify additional due diligence. Discuss the financial and practical consequences of each condition before submitting an offer.

Balance competitiveness with reasonable protection

In a competitive market, some buyers consider shortening contingency periods or waiving protections to strengthen an offer. However, NAR emphasizes that contract terms influence each party’s rights and obligations. A stronger-looking offer is not automatically a better decision if it exposes you to costs you cannot absorb. For Pittsburgh-area buyers, the best approach is to consider local competition while remaining within your financial comfort zone. Your real estate agent can help compare offer strategies, but a Pennsylvania real estate attorney should answer questions about contractual rights, deadlines, and potential loss of deposits. Understand what you are giving up before agreeing to waive a condition.

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Sources

National Association of REALTORS®: Consumer Guide: Real Estate Sales Contract Contingencies; Consumer Guide: Escrow and Earnest Money

*Contingency rights and cancellation remedies depend on the written agreement and applicable law. Seek advice from a qualified Pennsylvania real estate attorney. Includes AI-generated content.