My clients often come to me having heard the word "contingency" thrown around, but not really understanding what it means for them in practice. Simply put, a contingency is a clause in the purchase and sale agreement that says: "This sale will proceed IF a certain condition is met." If that condition isn't met, the buyer generally has the right to terminate the contract and get their earnest money back.
Contingencies are your safety net. They're not signs of weakness in an offer — they're standard buyer protections that any experienced agent will recommend you include. According to industry data, approximately 82% of homebuyer offers include at least one contingency. Understanding what you're agreeing to (and what you're giving up if you waive a contingency) is one of the most important parts of my job as your agent.
In my experience, the inspection contingency is the one my clients care most about — and rightfully so. Under a standard Georgia purchase and sale agreement, you have the right to conduct a home inspection within a specified Due Diligence period, typically 10–14 days. During this period, you can hire licensed inspectors to evaluate the home's condition — roof, foundation, HVAC, plumbing, electrical, and more.
If the inspection reveals issues you're not comfortable with, you have three options: ask the seller to make repairs, request a price reduction or seller credit, or terminate the contract and receive your earnest money back. In Georgia, the Due Diligence period gives buyers significant flexibility — you don't even need to cite a specific reason to terminate during this window as long as you do so in writing before it expires.
I always recommend my buyers get a thorough inspection. Even on newer construction, inspectors regularly find items worth addressing. The cost of an inspection — typically $350–$550 in the Woodstock area — is minimal compared to discovering a major issue after closing.
A financing contingency (sometimes called a mortgage contingency) protects you if your loan doesn't come through. If you're financing your purchase — which most buyers are — this contingency gives you the right to exit the contract and recover your earnest money if your lender is unable to approve your loan under the terms specified in the contract.
In Georgia, financing contingencies typically specify a deadline by which you must receive loan commitment. Your lender will need to complete underwriting within this window. If your loan falls through after that deadline due to something within your control (like not providing documents or taking on new debt during the process), you could lose your earnest money.
My advice: get fully pre-underwritten, not just pre-qualified, before you make an offer. And absolutely do not make any large purchases, open new credit accounts, or change jobs between going under contract and closing.
If you're financing your home, your lender will order an appraisal to verify that the home is worth at least as much as you're paying for it. If the appraisal comes in below the contract price, an appraisal contingency gives you options.
Without an appraisal contingency, you're on the hook for the difference between the appraised value and the purchase price — in cash. In a competitive market, some buyers waive this contingency to make their offer more attractive. I always discuss the risks carefully with my clients before recommending that approach. In Cherokee County, where we've seen some price adjustments as the market normalizes from the pandemic peak, an appraisal gap is a real possibility in certain price ranges.
With an appraisal contingency in place, if the home appraises low, you can renegotiate the price with the seller, make up the difference in cash (if you choose to), or terminate the contract and get your earnest money back.
If you already own a home and need to sell it before you can buy, a home sale contingency allows you to make your purchase contingent on closing your existing home first. This protects you from carrying two mortgages simultaneously.
The challenge is that many sellers in a competitive market are reluctant to accept home sale contingencies — they don't want to take their home off the market and wait, only to find out the buyer's home didn't sell. In Cherokee County, whether this contingency is viable depends heavily on current market conditions, the price range, and how quickly homes are moving.
I help my clients evaluate whether a home sale contingency is realistic given the specific property and market conditions, or whether a bridge loan or other financing strategy makes more sense for their situation.
In the most competitive markets of 2021 and 2022, buyers were routinely waiving inspection and appraisal contingencies just to win offers. The market in Cherokee County has shifted toward something more balanced in 2025–2026, and in most situations I'm working with buyers today, waiving contingencies entirely is not necessary or advisable.
That said, there are situations where a shortened Due Diligence period or a modified appraisal contingency can make your offer more competitive without leaving you exposed. I'll always talk through what makes strategic sense given the specific property, the number of competing offers, and your personal risk tolerance.
With 28+ years in real estate, I'll help you navigate the Cherokee County market with confidence. Call or text me today — no pressure, just honest guidance.
(770) 988-5469 — Call Cindi