What Are the Common Contingencies in a Home Purchase?

🏡 What Are the Common Contingencies in a Home Purchase?

When you’re buying a home, a contingency is your safety net—conditions written into your offer that must be met for the sale to move forward. Contingencies protect buyers from unexpected surprises and help ensure you’re making a sound investment.

In a competitive Portland market, understanding which contingencies matter most can help you write a strong, balanced offer that still protects your interests.

1. Inspection Contingency 🔍

This allows buyers to hire a professional home inspector to evaluate the property. If the inspection reveals significant issues—like a failing roof or electrical concerns—you can negotiate repairs, request credits, or back out without penalty.
💡 Tip: Even in competitive markets, never skip inspections entirely—consider shortened timelines or “for-information-only” inspections to stay competitive while staying safe.

2. Appraisal Contingency 💰

Your lender will order an appraisal to confirm the home’s market value. If the appraisal comes in lower than the purchase price, you can renegotiate or cancel the contract.
In today’s Portland market, where home values can fluctuate quickly between neighborhoods, this contingency ensures you don’t overpay.

3. Financing Contingency 🏦

Also called a loan contingency, this protects you in case your financing falls through. If your mortgage application is denied despite a pre-approval, this clause allows you to withdraw your offer without losing your earnest money deposit.
It’s especially helpful for first-time buyers or those using specialized loans (VA, FHA, or physician programs).

4. Title Contingency 📜

Before closing, a title company verifies that the property’s ownership is clear of liens, legal disputes, or unpaid taxes.
If title issues arise, this contingency gives you time to resolve them—or cancel the purchase if they can’t be cleared.

5. Home Sale Contingency 🏠

For buyers who need to sell their current home before buying another, this clause makes your new purchase dependent on that sale.
In Portland’s faster-moving markets, this contingency is less common—but can still work with the right strategy and communication between agents.

6. HOA or Review Contingency 🗂️

If you’re buying a condo or townhome, you’ll receive a disclosure packet with rules, budgets, and meeting minutes. This contingency gives you time to review those documents to ensure you’re comfortable with fees, policies, and future assessments.

🌿 So What?

Contingencies aren’t just paperwork—they’re protection and power.
They allow you to make confident, informed decisions while still being competitive in your offer. The key is knowing which contingencies are essential, which can be modified, and how to use them strategically in today’s Portland market.

🤝 Ready to Write a Smart Offer?

Whether you’re buying your first home or your fifth, I’ll guide you through every contingency and negotiation with clarity, care, and confidence.
Let’s create an offer that protects your investment—and positions you to win.