Writing an offer on a Westerville home and not sure what every contingency really means? You are not alone. Contingencies can protect you, but they also affect how a seller views your offer. In this guide, you will learn what each contingency does, how timelines usually work in Franklin County, and how to balance protection with a competitive offer. Let’s dive in.
What contingencies mean in Westerville
Westerville follows common Columbus-area practices, using Ohio REALTORS standard purchase agreements. A contingency is a condition you and the seller agree to in writing. If the condition is not met, you can usually cancel or renegotiate according to the contract. Any removal, waiver, or amendment must be in writing.
Inspection contingency
An inspection contingency gives you time to hire professionals to evaluate the home. Typical scopes include structure, roof, electrical, plumbing, HVAC, and more. Radon testing is common in Ohio and is often added to the inspection package. If issues are found, you can request repairs or credits, or cancel within the inspection window if allowed by the contract.
Financing contingency
A financing contingency makes your purchase dependent on receiving loan approval or a written loan commitment within a set period. Lenders in the Columbus area will collect documents, order the appraisal, and complete underwriting. This clause protects you if the loan cannot be approved, though some sellers prefer offers with strong proof of funds or cash.
Appraisal contingency
An appraisal contingency allows you to walk away or renegotiate if the appraisal required by your lender comes in below the contract price. Appraised value is based on comparable sales in the Columbus metro. In rising markets, appraisal gaps can happen, and some buyers include an appraisal-gap clause to cover part of a shortfall.
Home-sale contingency
A home-sale contingency ties your purchase to the sale of your current home. It may include deadlines to list your home or reach a pending status. In competitive Columbus-area suburbs like Westerville, sellers often reject home-sale contingencies or counter with tight timelines and proof-of-listing requirements. This clause protects you if you need sale proceeds to close, but it can weaken your offer.
Title and survey contingencies
Title and survey contingencies let you review the title commitment and any survey for defects, liens, or easements. You typically have a short window to object after receiving the documents. This protects you from undisclosed ownership or property issues that could affect your use of the home.
HOA, lead-based paint, and specialty items
If the property has an HOA, you often have a period to review association rules, budgets, and fees. Homes built before 1978 require a federal lead-based paint disclosure, and buyers commonly receive up to 10 days for related inspections. Private well or septic inspections may apply to certain properties, more common in rural parts of Franklin County.
Typical timelines and flow
Every deal is unique, but Westerville transactions often follow similar ranges and sequencing. Knowing these ahead of time helps you plan your offer and avoid rushed decisions later.
Common timeframes
- Inspection period: commonly 7 to 10 days
- Financing or loan commitment: commonly 21 to 30 days; certain programs may need 30 to 45 days
- Appraisal delivery: often 7 to 21 days after ordered, usually within the financing window
- Title and survey objection: often 7 to 10 days after you receive the documents
- Contract to closing: often 30 to 45 days, with 21 to 60 days possible
- Earnest money: typically held in escrow with the title company or brokerage; local ranges vary and can be a few thousand dollars to roughly 1 to 3 percent of the price, depending on competitiveness
Sample contract-to-closing timeline
- Day 0: Offer accepted; the contract is in effect.
- Days 0 to 7–10: Inspection period. You complete inspections and deliver any repair requests or a notice to terminate under the contract terms.
- Days 0 to 21–30: You finalize your loan application, the appraisal is ordered and completed, and underwriting works toward loan commitment.
- In parallel: Title search is completed and the title commitment is issued. You have a short window to review and object.
- After contingencies are cleared: You move toward clear-to-close and settlement, often around day 30 to 45.
How contingencies affect your offer
Contingencies protect you, but they can reduce a seller’s confidence that the deal will close. Shorter or fewer contingencies can strengthen your offer, but they raise your risk if something goes wrong.
What Westerville sellers prioritize
- Financing: Sellers prefer clear, reliable financing. A strong pre-approval or fully underwritten letter can increase confidence.
- Home-sale: This is often the least attractive to sellers in competitive conditions and may be rejected or heavily modified.
- Inspection: Most sellers expect an inspection, but shorter timelines and a focused scope can help your offer stand out.
- Appraisal: Sellers worry about low appraisals. Buyers sometimes use appraisal-gap language to limit renegotiation risk.
Smart ways to stay competitive
- Provide a strong pre-approval or proof of funds. A local lender who understands Franklin County appraisals can streamline timelines.
- Shorten deadlines only if you can realistically meet them. For example, a 5 to 7 day inspection period can help, but only if your inspector can get there quickly.
- Use an appraisal-gap addendum with a clear dollar cap rather than waiving the appraisal contingency entirely.
- If you need a home-sale contingency, include strict benchmarks and frequent updates. Be ready for counteroffers that tighten the timeline.
- Increase earnest money to signal commitment, knowing it can be at risk if you later remove protections and fail to close.
- Offer flexible closing or post-closing possession to ease a seller’s timeline concerns.
Risks of waiving or shortening
- Waiving inspection: You may inherit expensive repairs with limited leverage to address them.
- Waiving financing or appraisal: If your loan falls through or the appraisal is low, you could lose earnest money and risk breach of contract.
- Tight timelines: Scheduling issues with inspectors, appraisers, or lenders can cause delays that put you in default if the contract is not adjusted.
Your pre-tour contingency checklist
Decide these items before you start touring so you can write a clear, confident offer when the right home appears.
- Financial readiness
- Secure a strong, underwritten pre-approval or prepare proof of funds if paying cash.
- Set your target earnest money range for your price bracket and competition level.
- Contingency preferences
- Inspection: Full inspection or limited scope? Will you add radon, termite, sewer scope, or other tests? Is 7 or 10 days realistic for your schedule?
- Financing and appraisal: Keep a full financing contingency, shorten it, or plan an appraisal-gap strategy? How much cash can you bring if needed?
- Home-sale: Will you include it? If so, what benchmarks will you commit to, and what is your backup plan if timing slips?
- Title and survey: Are you comfortable with standard title reviews and typical objection windows?
- Timelines and flexibility
- What is your preferred closing window? Can you match a seller’s ideal date?
- How quickly can your inspectors and lender move in the current market?
- Risk tolerance and strategy
- How comfortable are you reducing timelines or adding an appraisal gap? What is your earnest money risk tolerance?
- Will you consider an escalation clause or being a backup offer?
- Logistics
- Line up local inspectors and a radon test provider before you write.
- Keep digital copies of your pre-approval and funds ready for submission.
Real-world scenarios buyers ask about
- Low appraisal: Common outcomes include renegotiating price, you bringing extra cash, or ending the deal if the appraisal contingency applies and no agreement is reached.
- Inspection discoveries: You can request repairs or credits. Sellers may accept, counter, or decline. If you cannot agree, the contract may allow termination within the inspection window.
- Lender timing: Underwriting and loan commitment often take 21 to 30 days in Westerville, but speed depends on complete documents and lender workflow. Appraisals typically arrive within 7 to 21 days.
- Seller requests to waive protections: A seller can counter with fewer or shorter contingencies. You choose whether to accept. Waiving increases your risk, so weigh the tradeoffs carefully.
Final thoughts and next steps
Contingencies exist to protect you from surprises and support a smooth closing. In Westerville, you will balance protection with competitiveness by choosing the right mix of clauses, realistic timelines, and strong documentation. A thoughtful plan upfront helps you act quickly without taking on more risk than you intend.
If you want a step-by-step strategy for your next offer in Westerville or nearby suburbs, let’s talk. Tap into clear guidance, strong negotiation, and a financial lens that keeps your long-term goals front and center. Reach out to Jason Peeler to start your plan.
FAQs
What are inspection contingency basics in Westerville?
- An inspection contingency gives you 7 to 10 days in many contracts to inspect, request repairs or credits, or cancel per the contract if issues are not resolved.
How does a financing contingency protect me as a buyer?
- It allows you to cancel if you cannot obtain loan approval or a written commitment by the deadline, instead of being forced to close without financing.
What happens if the appraisal is lower than my offer price?
- You typically renegotiate, bring extra cash to cover part of the gap, accept a reduced loan amount, or cancel if the appraisal contingency applies and no deal is reached.
Will a home-sale contingency hurt my chances in Westerville?
- Often yes in competitive conditions. Sellers may reject it or counter with stricter timelines and proof-of-listing requirements.
How long does it usually take to close in Franklin County?
- Many transactions close in 30 to 45 days, though 21 to 60 days is possible depending on lending, title, and seller needs.
Can a seller make me waive contingencies?
- A seller can request a waiver in a counteroffer, but your acceptance is voluntary. Waiving protections increases your risk.
What are the risks if I remove contingencies and cannot close?
- Your earnest money may be at risk, and you could face contract penalties. Review specifics with your agent before removing protections.
