These little contract clauses can save your wallet — or blow up your deal if misused

Let’s talk about contingencies — something many buyers don’t fully understand, and unfortunately, even some agents get wrong.

A contingency is your safety net — it gives you a legal and financial “out” if something goes wrong during the buying process.

But here’s the catch:
Use them the wrong way, and you could lose the house.
Fail to use them at all or manage the deadlines? You could lose your deposit.

What Is a Contingency, Really?

A contingency in your contract means, “I’ll buy this home… IF these conditions are met.”

It gives you time to:

• Get your loan finalized
• Inspect the home
• Verify the condition, taxes, title, or insurance
• Walk away without penalty if something serious comes up

While they’re designed to protect you, they’re also risky if you don’t manage them carefully. Sellers see them as “maybe” clauses — and you’re asking them to take their house off the market while you think things over.

So here’s how to get it right:

Never Waive Your Inspection Contingency

We don’t care how much you love the home or how hot the market is — do not waive inspections.

This contingency gives you a chance to:

• Hire a qualified home inspector
• Check the roof, plumbing, HVAC, electrical
• Spot red flags like foundation issues, leaks, or mold
• Get roof inspections separately (most inspectors don’t go deep on roofs)
• Pull tax records, check insurance costs, and verify the property info

This is your “do your homework” window. Use it.
If something major comes up, the inspection contingency lets you walk away with your deposit intact.

Loan Approval Contingency

Most contracts allow a 10- to 15-day window to get formal loan approval (not just pre-approval).

If something happens — your credit changes, interest rates jump, or underwriting finds a problem — this contingency protects your earnest money if the deal falls apart.

Once that contingency deadline passes and you haven’t canceled the deal?
You’re locked in. If the loan falls apart later, you could lose your deposit.

How Long Should Contingencies Last?

Most contingency periods are 10 to 15 days, and that’s usually all a seller will tolerate — for good reason.

From their perspective:

• You’re asking them to take their house off the market for two weeks
• They can’t show it or accept other offers
• And you can still walk away for any reason during that time

That’s a big ask. So keep it reasonable. If you ask for more than 15 days, you better have a good reason — like waiting on a specialist inspection or complex approval.

Pro Tip: You need to hustle during those 15 days.
Schedule inspections quickly. Get quotes. Verify everything. You’re on the clock.

Sellers Look at the Whole Picture

If your offer includes:

• A price slightly below asking
• 3% in seller-paid closing costs
• AND a 21-day contingency window?

You may lose the deal — not because the seller doesn’t like you, but because the offer feels too risky.
A solid offer with short but realistic contingencies will almost always beat a slightly higher one with more strings attached.

House Karma Advice

✅ Never waive inspections — especially if you’re a first-time buyer
✅ Use contingencies smartly — they protect you, but they’re not a free pass
✅ Keep them short — 15 days or less unless you have a compelling reason
✅ Once your contingency expires, you’re in — and your money’s on the line
✅ Get expert help — our House Karma advisors will help you write them right

Bottom Line

Contingencies are your exit ramp if something serious pops up — but they only work if you use them right and manage the deadlines.

Fail to use them, and you risk buying a house with hidden problems.
Use them incorrectly, and you risk scaring off the seller — or losing your deposit entirely.

At House Karma, we’re here to make sure that doesn’t happen.
We’ll help you write a smart, strong offer that protects your interests without blowing the deal.