Videos · Buying a home
Contingencies: what every home buyer should know
The four contingencies most buyers use - financing, appraisal, inspection and home sale - and what each lets you do if something goes wrong.
Stephen Wilson · · 2:34
Plays from YouTube when you press play. Watch on YouTube
What this video covers
- A contingency is a condition in the contract that has to be met before the sale goes through.
- Financing contingency: you can back out if your loan is not approved.
- Appraisal contingency: you can back out if the home appraises below the price.
- Inspection contingency: you can back out if the inspection turns up major problems.
- Home sale contingency: you can back out if you cannot sell your current home.
- Rules and customs differ by state and even by county, and a seller can push back on any contingency, so they get negotiated with the rest of the offer.
More videos
Filmed in 2023, when Stephen was with a different brokerage. This is general information, not legal or tax advice; rules change, so confirm the details for your situation.