Why smart buyers and sellers rely on them

A contingency is a condition in a purchase contract that must be met for the sale to move forward. The National Association of Realtors (NAR) notes that contingencies are designed to protect the buyer and seller from surprises that could derail the deal.

The Most Common Contingencies

In a typical market, the most common contingencies include:

• Home inspection
• Financing approval
• Appraisal
• Clear title
• Sale of buyer’s existing home or “home sale contingency”

If one of these protections fails, the buyer can usually exit the contract without losing their earnest money.

In the last couple years where we’ve experienced a shortage of houses here in Cleveland, the use of contingencies has changed. Basically no seller will look at an offer with a home sale contingency. Also, many savvy buyers offer to cover the “appraisal gap” in whole or part.

Why They Matter in Cleveland

Homes in places like Chagrin Falls, Bainbridge Township and Solon can attract multiple offers. Some buyers feel pressure to waive contingencies to win the home. For instance, they may decide not to do a home sale inspection in order to make their offer more attractive. That can be risky! For example, skipping inspections may mean missing structural or safety issues that can be very expensive reapirs.

Contingencies Help Sellers Too

Contingencies create structure and clarity in a transaction. A financing contingency ensures a buyer is qualified. An appraisal contingency keeps the home from selling far above what a lender will support.

A Strategy, Not a Barrier

With the right guidance, contingencies don’t kill deals — they keep them fair. As a seasoned Cleveland-area Realtor®, I help both buyers and sellers use contingencies strategically. The goal: a confident closing with fewer surprises.