Short Answer
The most important contingencies to include are the inspection contingency, financing contingency, and appraisal contingency. The inspection contingency lets you negotiate repairs or walk away if major issues are found. The financing contingency protects you if your loan falls through. The appraisal contingency allows you to cancel if the home does not appraise for the purchase price. In New Jersey, an attorney review contingency is also standard.
Contingencies protect you as a buyer by giving you the right to walk away with your earnest money if certain conditions are not met. The inspection contingency is your opportunity to uncover hidden problems. The financing contingency protects you if your loan is denied or if interest rates change significantly. The appraisal contingency ensures you are not paying more than the home is worth. In a seller's market, you may consider waiving certain contingencies to make your offer more competitive, but each waiver increases your risk. Many buyers compromise by shortening contingency periods rather than waiving them entirely. Your agent should explain each contingency and help you decide which ones are essential for your situation. In New Jersey, the attorney review contingency is standard and gives both parties an opportunity to have the contract reviewed by legal counsel.
Bob's Advice
Redfin Senior Agent · AI Certified Agent
I always recommend keeping the inspection and financing contingencies. I have seen buyers regret waiving them when something went wrong. If you need to be competitive, we can shorten the timelines instead of eliminating the protections. Let me help you find the right balance for your situation.
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