By The Sky Group
If you're buying or selling a home in Bethesda, MD, you've likely heard the term “contingency” come up during the offer stage. We know this part of the contract can feel confusing, but contingencies are a standard—and important—piece of any real estate transaction. Whether you’re listing a luxury condo downtown or making an offer on a Chevy Chase colonial, knowing how contingencies work can help you negotiate with confidence.
Key Takeaways
- Contingencies protect both buyers and sellers during the contract phase.
- Common types include financing, inspection, and appraisal.
- Removing or waiving contingencies can make your offer more competitive.
- Every contingency has a deadline and legal implications.
What Is a Real Estate Contingency?
A real estate contingency is a clause in the contract that makes the sale dependent on certain conditions being met. In Bethesda’s fast-paced market, contingencies can either strengthen or weaken an offer—depending on how they're used.
Why Contingencies Matter in a Contract
- Protect buyers – Allow time to confirm financing, inspect the home, and appraise the value.
- Offer legal outs – Buyers can cancel the deal without penalty if certain issues arise.
- Set timelines – Each contingency includes a deadline for completion or removal.
- Balance risk – Sellers benefit from clear boundaries on buyer obligations.
Most Common Real Estate Contingencies
While contracts can include many types of contingencies, there are a few we see regularly in Bethesda, especially in higher-end transactions.
Key Contingencies to Know
- Financing contingency – Protects buyers if they’re unable to secure a mortgage.
- Home inspection contingency – Gives buyers the right to inspect the home and negotiate repairs or credits.
- Appraisal contingency – Ensures the property appraises at or above the purchase price.
- Home sale contingency – Ties the purchase to the buyer selling their current home first.
How Contingencies Impact Offers in Bethesda
In competitive neighborhoods like Edgemoor, Glen Echo Heights, or Battery Park, contingencies can be a sticking point during negotiations. Sellers typically prefer offers with fewer conditions.
Pros and Cons of Contingencies for Buyers
- Pros:
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- Added protection
- Flexibility to exit the deal if needed
- Cons:
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- May weaken your offer in a multiple-offer situation
- Short contingency periods can create pressure
Pros and Cons for Sellers
- Pros:
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- Defined expectations and deadlines
- Opportunity to accept a backup offer if contingencies fall through
- Cons:
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- Risk of delays or contract cancellations
- May limit negotiating power if buyer includes too many terms
Can You Waive Contingencies?
Yes, and many buyers do—especially when trying to win a property in Bethesda’s luxury market. But there are trade-offs.
When It Makes Sense to Waive
- You’re paying cash – Eliminates the need for financing or appraisal contingencies.
- The property is newer or recently renovated – Less risk during inspection.
- You’ve done your homework – Pre-offer inspections or lender approvals reduce uncertainty.
Before waiving any contingencies, we always recommend having a conversation about your comfort with the risks involved.
FAQs
Are contingencies required in every real estate contract?
No, but they are common. Most buyers include at least one to protect their interests, especially for financing or inspections.
How long do contingencies typically last?
It varies, but common timelines in Bethesda are 7–10 days for inspections and 21–30 days for financing or appraisals.
Can a seller reject an offer just because it has contingencies?
Yes, especially in competitive markets. Sellers may prioritize clean offers with fewer conditions.
Contact Us at The Sky Group Today
Whether you're buying your first home or selling a luxury property in Bethesda, real estate contingencies play a critical role in protecting your interests. We’ll guide you through every clause, deadline, and negotiation strategy so you can feel fully confident in your next transaction.
Reach out to us at The Sky Group, and let’s talk about how to use—or avoid—contingencies in your real estate deal. With our expert guidance, you’ll navigate the Bethesda market with clarity, strategy, and peace of mind.
Reach out to us at The Sky Group, and let’s talk about how to use—or avoid—contingencies in your real estate deal. With our expert guidance, you’ll navigate the Bethesda market with clarity, strategy, and peace of mind.
