A contingency is when a buyer has made an offer on a home and the seller has accepted it, but the finalized sale is contingent upon certain criteria being met.
This criteria, or contingencies, typically fall under four major categories: appraisal, loan approval, inspections and, reports and disclosures,
In Santa Fe the typical inspections are home inspection, roof, mold, maybe radon. If you have a well or septic expect those inspections also.
The buyer has the time to do their due diligence in all of these areas, written into the timeline of the contract. Each time a contingency is satisfied, you’re that much closer to closing. Sometimes an offer will be contingent on the sale of the buyers home. Anytime an offer comes in with a standard contingency removed, like loan or inspection, that automatically makes it a stronger offer because it is one less hurtle to clear on the way to closing. So those are contingencies! They a standard part of real estate deal and they mark the path to the closing table like breadcrumbs. I troubleshoot contingencies all day long. 😎😎😎