If attempting to purchase a new home, including certain contingencies with a submitted offer is very important. Before a seller accepts a bid, they will review the amount that the buyer is willing to pay for the property, and seriously consider the terms outlined. Contingencies are common within a real estate contract. Furthermore, home sellers expect the buyer to negotiate certain contingencies. Nonetheless, the seller is not obligated to accept the terms of the offer.

Contingent on Ability to Secure Financing - Buyers including this contingency within the written contract are essentially informing the seller of their intentions to walk away from the deal if unable to qualify for a mortgage loan. Being upfront with the seller is respectful. However, this reason alone prompts many sellers to only accept bids from pre-approved buyers.

Contingent on Satisfactory Home Inspection - Many mortgage lenders require the buyer to obtain a home inspection. This involves checking and ensuring that the property is free from the presence of lead, mold, structural problems, pests, and so forth. If the home requires extensive repairs, an inspection contingency allows the buyers to retract their bid.

Contingent on Home Appraisals - Some sellers are unrealistic when it comes to the market value of their home. For this matter, the sale price of the property may exceed its worth. Without conducting a comparative analysis of similar properties in the neighborhood, buyers may unknowingly submit a bid over the fair market value. However, problems arise when the home is appraised much lower than the sale price. With an appraisal contingency, the buyer may walk away from the deal if the appraisal comes in at a value less than the contract price.

Contingent on Sale of Current Property - Another contingency often included within a written contract is one that states that the purchase of a property is contingent on the buyer's ability to sell their current home. Again, many sellers are unwilling to agree to this type of contingency. If eager to sell their home, sellers do not want to waste time and risk taking their home off the market for a buyer who may, or may not be able to finalize the deal.