What is a contingency?

You hear us talking about contingencies a lot: home inspection contingencies, financing contingencies, appraisal contingencies. What does all this mean for you as a buyer or seller? Today, we are going to answer all of those questions!

As a buyer, you want to have contingencies in your offer for your protection. And sometimes, it's not just a matter of wanting a contingency, but a matter of needing one. For instance, if you're concerned that the roof leaks, you would "want" a financing contingency in your offer. If you are getting a mortgage on the home, you "need" a financing contingency unless you plan on paying cash for the house.

As a seller, contingencies aren't necessarily negative if they are within reason. What I mean by that is the time frame of the contingency is reasonable, and it is a typical contingency, nothing out of the ordinary for the market.

We can't stress enough that as a buyer, make sure to have clear communication with your agent about the want or need for a contingency in your offer so that they can write your offer with a clear understanding of what your intentions are. Sellers, ask your agent questions such as, "Is this a standard contingency?" or "Is this a normal timeframe for this contingency?" and so on.

Bottom line, communication is critical when dealing with contract details. Our agents at Castle Rock Realty are experts at asking questions until they understand the intentions of their buyers and sellers. Contact one of our agents today with any questions about contingencies or any other real estate matters.