if you’re a homebuyer looking at a new property, you want to feel confident that your investment is solid and your new home is up to snuff. when you include a home inspection contingency in your contract, you specify that you plan to have a certified home inspector inspect the property within a certain timeframe. when you use a homeward cash offer to buy your new home, your home inspection will occur during the homeward purchase.

if the criteria is not met, buyers are entitled to a refund of their earnest money. an experienced real estate agent can help you decide which contingencies to include based on their knowledge of the home and of the housing market. if a home does not appraise for the amount that a buyer has agreed to pay, the buyer can walk away from the deal with their deposit. if a buyer is not approved for a mortgage or is not approved within the number of days specified in the contingent offer, the buyer will receive their earnest money back and the house will remain on the market. this means that the purchase of a new home is contingent on the buyer’s ability to sell their current home.

therefore, an appraisal contingency means that if your home doesn’t appraise for the amount you’ve agreed to pay, you can walk away from the deal with your deposit. you have the option to rescind your offer and get your earnest money deposit back if you include a contingency in your offer and the condition isn’t met. ultimately, you may have to walk away from the sale if you and the seller can’t reach an agreement. you may be able to get your deposit back and walk away from the sale if you and the seller can’t reach an agreement and you aren’t able to get a loan.