# Contingent Offers Fall Through at Higher Rates Than You'd Think
Contingent offers—those made contingent on home inspections, appraisals, or home sales—collapse far more often than clean offers, according to Redfin data. The failure rate matters enormously for both buyers and sellers navigating today's market.
Redfin's research shows contingent offers fail at roughly double the rate of non-contingent deals. Inspection contingencies trip up the most deals. Buyers discover structural problems, foundation issues, or required repairs that either kill the deal outright or trigger renegotiation. Appraisal contingencies create another stumbling block. When a home appraises below the agreed purchase price, lenders won't fund the full amount. Buyers either cover the gap with cash or walk away. Home sale contingencies, where a buyer's offer depends on selling their current property first, carry their own risk. If that sale falls through, the entire chain collapses.
The timing matters too. Contingent offers take longer to close. This extends the seller's exposure to market shifts and competing offers. Sellers increasingly reject contingent offers in favor of clean ones, especially in competitive markets where they hold leverage. A contingent bid signals weakness to the seller.
For buyers, contingencies offer protection but cost competitiveness. Waiving contingencies speeds up an offer and appeals to sellers, but exposes buyers to major financial and structural risks. The safest middle ground involves inspections and appraisals while avoiding home sale contingencies when possible.
The data carries clear lessons. Buyers in strong positions should consider contingency waivers to win bidding wars. Sellers should expect roughly 20-30% of contingent offers to fail before closing. Real estate agents now counsel clients that contingencies act as deal killers in seller-favorable markets.