Buyer Contingencies: Top Ones You Shouldn’t Remove

Today’s real estate market is one of the most competitive buyers have ever seen. That’s why so many are taking extraordinary measures to make sure their bids stand out. They’re willing to pay more than the asking price and even offer to remove certain contingencies. A contingency is a protective provision that allows buyers or sellers to back out of a sale if they encounter certain issues during the sales process.

It can be tempting to remove some contingencies so that your bid is more appealing to the seller. Unfortunately, doing so can be risky. Some contingencies can be nixed safely, but there are others you should never sacrifice. Here are some of the most important contingencies for buyer protection.

Home Inspection

When looking at homes for sale in Central Florida, you always want to keep the home inspection in mind. This is perhaps the most important contingency a buyer can have. A home inspection allows a knowledgeable neutral party to assess your potential home for any major issues. The inspector will go over every detail to ensure that the foundation, roof, plumbing, electrical, and other significant systems are in proper working order. An inspection allows you to make decisions regarding any problems that are found. You can cancel the sale if you believe the issue is too burdensome or you are often able to negotiate with the sellers to make repairs. Without an inspection, you’re left without recourse.

Well and Septic Systems

If the property you want to buy has a well and septic system, you definitely don’t want to give up your right to an appraisal. These are some of the most expensive issues to repair. In addition, these systems have a great impact on health. You certainly don’t want to find yourself with thousands of dollars in necessary repairs.


The appraisal is another important safeguard for buyers. This contingency allows you to find out what the property is actually worth. If you opt-out of the appraisal, you may end up locked into a contract that requires you to pay a price that far exceeds the home’s actual value. In fact, most lenders won’t provide funding for more than the appraisal price. You don’t want to waive this contingency unless you can afford to pay the difference out of pocket. Having an appraisal in hand may convince the seller to negotiate on price.


Finally, it’s advisable to maintain a loan or financing contingency unless you are paying cash for a home. Without this failsafe in place, you could lose your deposit in the event that there is a problem with your loan. Removing this contingency is a hefty risk for borrowers.

Keep these contingencies in mind as you proceed with your home search. Having this information will ensure you’re ready to negotiate when the right house comes along.