Framework Homeownership Making an Offer Answers describe contingencies as situations that have to be fulfilled before a home purchase is completed. Typical ones are home inspection, financing approval, and appraisal value. These terms safeguard the buyers as they are able to renegotiate or back out in case of problems. Nevertheless, the responses also point to the fact that excessive contingencies may undercut an offer in a competitive market. Customers will be advised to add only the necessary protections and make the proposal attractive to the sellers. Knowing how contingencies operate assists the buyer to make wiser decisions and prevent the needless risks when making purchases.