Ask Harry · Buying a Home
Which contract contingencies can you safely waive?
Short answer
There's no universal list of contract contingencies everyone must keep. Every buyer has a different risk tolerance and every home is different, so the right answer comes from a conversation about your situation, not from a rule.
Full answer
A contract contingency is a condition that must be met for the contract to move forward. Protecting the buyer is what they are for, but which ones are worth keeping depends on the buyer and the home.
Take the inspection contingency. A buyer who is a contractor planning to renovate extensively, or even tear the home down, may reasonably waive it. And a buyer who completed a pre-offer inspection has already learned the condition of the property, so waiving the inspection contingency can make sense because the homework is done.
Financing and appraisal contingencies work the same way. They are right to keep for some buyers, and right to waive for others, depending on the situation.
Contract contingencies
The big three, weighed for your situation
Inspection
This one lets a professional look at the home's condition before the sale is final, so if something significant turns up, it becomes your decision how to respond. Whether it is worth keeping depends on the home and on how much you already know about its condition.
Financing
This one protects you if the loan cannot be completed on the agreed terms. If the financing falls through for reasons beyond your control, you can step away without losing your earnest money. For some buyers that protection is essential; for others, with a comfortable cushion, waiving it is a reasonable judgment call.
Appraisal
This one ensures the home supports the agreed price in the eyes of the lender. If the appraisal comes in lower than the contract price, you have room to renegotiate instead of overpaying. Buyers with room in their budget may weigh that risk differently than buyers stretched to their limit.
In plain terms
The way I like to explain it
The way I like to explain it, a contract is like walking a balancing rope. The contingencies are the parts of the rope that keep your walk steady, and you decide which parts to keep based on your own balance and risk tolerance. Dropping the wrong part is a decision with real weight, so make that choice with good information, not by reflex.
Putting it to work
What this means when you're buying
An offer with the right contingencies still looks strong when it is priced and timed well. Waiving everything is not the only way to compete, and it is not the right answer for most buyers. Sit down with your agent, weigh which protections matter most for the specific home you are pursuing, and make the call with your eyes open.
Making the call
The way to decide
Understanding the contract contingencies from the beginning, and honestly assessing your own risk tolerance, is what makes the choice clear. This is exactly the kind of conversation worth having with an agent before you write an offer. Getting the lay of the land together leads to an educated decision.
Talk through the contingencies for your situationAsk Harry
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Whether you are buying, selling, or relocating in the DC area, the first step is a conversation. No pressure, just a straight answer.