Writing an offer in Walnut Creek and hearing “waive your contingencies” can feel intimidating. You want to be competitive without risking your deposit or buying a home with costly surprises. The good news: with clear timelines and the right strategy, you can protect yourself and still write a strong offer.
In this guide, you’ll learn how financing, appraisal, and inspection contingencies work, local timeline norms in Contra Costa, and practical tactics to balance risk and strength. You’ll also get a buyer checklist you can use from offer to closing. Let’s dive in.
What contingencies are and why they matter
A contingency is a condition in your purchase contract that must be met for the sale to move forward. If the condition is not met on time, you can cancel or renegotiate without losing your earnest money. Common examples include getting your loan approved, confirming an acceptable appraisal, and completing inspections.
In California, contingencies are written into the purchase agreement and removed in writing when you are ready. Timelines keep everyone on track during escrow, including inspections, lender underwriting, and title work. Verbal assurances do not remove a contingency, so written notices matter.
The big three contingencies
Financing contingency
A financing contingency protects you if your loan cannot be approved on the agreed terms by a set date. You agree to apply promptly and cooperate in good faith, while your lender works through underwriting. A strong preapproval helps your offer, but final approval and contingency removal happen after underwriting and appraisal.
Appraisal contingency
An appraisal contingency protects you if the home appraises below your purchase price. If it comes in low, you can try to renegotiate, bring extra cash to cover the gap, or cancel if the contingency is in place. Even if you waive this contingency, most lenders still require an appraisal and any shortfall becomes your responsibility unless otherwise negotiated.
Inspection contingency
An inspection contingency gives you time to inspect the home and review findings. You can request repairs or credits, or cancel if significant issues appear. Typical inspections include a general home inspection, plus optional specialists such as pest and termite, roof, sewer, chimney, structural, and HVAC.
Other protections you might use
Pest and termite
This can be a separate contingency or part of your inspection period. Older homes often need a wood‑destroying organism report, and lenders may require clearance.
Title and HOA review
You can review the title report and HOA documents to understand liens, restrictions, assessments, or insurance issues. If major problems arise, you can work to resolve them or cancel within the period.
Disclosures review
California sellers provide state‑mandated disclosures. You should review these promptly during your disclosure period so you understand known conditions and any natural hazard information.
Walnut Creek timelines and norms
Local practice varies with market conditions, but Contra Costa transactions often follow these ranges:
- Escrow length: about 21 to 45 days, with 30 days common for conventional loans.
- Inspection period: about 5 to 10 days. Shorter windows, such as 3 to 5 days, are sometimes used to compete but increase risk.
- Financing contingency: often 14 to 21 days. Some contracts use 17 days, and jumbo or complex loans may need longer.
- Appraisal timing: usually 7 to 14 days after acceptance. The appraisal contingency may match the loan timeline or be slightly shorter to allow for renegotiation.
- Title and HOA review: about 5 to 10 days.
These are norms, not rules. Older homes or unique properties may warrant longer inspection windows, while very competitive listings may pressure shorter periods or appraisal‑gap language.
Risks of shortening or waiving
Shortening or waiving inspection
You may have less leverage to request repairs and fewer options to cancel if major defects are discovered later. You can mitigate by doing pre‑offer inspections if allowed, or by scheduling targeted inspections quickly.
Shortening or waiving financing
If your loan is denied after you remove your financing contingency, your deposit can be at risk. Consider keeping the contingency until your lender has issued a clear path to closing.
Waiving appraisal or using a gap
If the appraisal is low and you waived the contingency, you must bring cash to cover the difference unless the seller agrees to adjust. Many buyers use a capped appraisal‑gap promise instead of a full waiver to limit exposure.
Deposit exposure after removal
Once you remove a contingency in writing, recovering your earnest money becomes more difficult if you later do not close for a related reason. Keep thorough documentation of your loan process and appraisal.
Smart offer strategies in Walnut Creek
- Conservative plan: inspection 7 to 10 days, financing 21 days or tied to clear‑to‑close, appraisal contingency included.
- Competitive plan: inspection 5 to 7 days, financing 14 to 17 days, modest appraisal gap such as a set dollar amount or a percentage.
- Aggressive plan: consider waiving appraisal only if you have sufficient cash reserves and understand lender requirements.
Appraisal‑gap options
- Fixed amount: cover a shortfall up to a specific dollar cap.
- Percentage: cover a shortfall up to a set percentage of price.
Both give the seller more certainty while limiting your maximum cash exposure.
Inspection scheduling
Use a 7 to 10 day window for most single‑family homes. Book the general inspector for the first available day, then add specialists if the initial report flags issues. Decide your “must‑fix” items in advance, such as structural or safety concerns.
Earnest money signaling
A larger deposit can show strength in higher‑price markets. Choose an amount that supports your offer but does not put you at risk if a contingency must be removed later.
Clear loan milestones
Where possible, tie loan contingency removal to a lender green light to close, not just a preliminary approval. Order the appraisal early and keep all lender requests moving.
Buyer checklist
Before you write an offer
- Get a written preapproval from a local lender, ideally with conditional underwriting approval.
- Decide the maximum appraisal gap you are comfortable covering.
- Choose contingency periods that match your risk tolerance: inspection 5 to 10 days, financing 14 to 21 days, appraisal 7 to 14 days or tied to financing.
- Set an earnest money amount that signals strength without overexposing your funds.
Right after acceptance
- Schedule the general inspection immediately and line up specialists as needed.
- Submit your full loan application and documents right away. Aim for clear‑to‑close before removing your loan contingency.
- Order the appraisal promptly if required and discuss comparable sales with your agent.
If issues arise
- Inspection concerns: prioritize safety and structural items; request repairs or credits, or cancel within your inspection period if unresolved.
- Low appraisal: consider a price adjustment, using your gap funds if available, or an appraisal appeal with fresh comps if appropriate.
- Loan denial: if your financing contingency is still active, cancel to protect your deposit and regroup.
Documentation
- Keep copies of all reports, receipts, lender communications, and signed contingency removals or amendments.
Local context to keep in mind
Walnut Creek includes both newer subdivisions and mid‑century homes. Older properties may reveal plumbing, electrical, roof, drainage, foundation, or pest issues during inspections. Lenders often expect a current termite report for older homes, and remediation can be common.
Appraisals can be sensitive when inventory is thin, when renovations vary widely between comparable sales, or when jumbo loan guidelines apply. Unique homes or significant upgrades can increase appraisal variability, so plan your appraisal strategy and timelines with your lender and agent.
California sellers provide state disclosures, including transfer and natural hazard reports. Review these promptly during your disclosure period. If you are buying a condo or within an HOA, review HOA documents for assessments and insurance details that can affect lending and your decision.
Ready to compete with confidence?
You do not have to choose between protection and a strong offer. With the right contingency plan and local timelines, you can make a compelling bid and safeguard your deposit. If you want a tailored strategy for a specific Walnut Creek home, connect with Christina Beil for guidance and representation.
FAQs
What is a financing contingency in California?
- It lets you cancel or renegotiate without losing your deposit if your agreed‑upon loan cannot be approved by the deadline, provided removal has not occurred.
How long is a typical Walnut Creek inspection period?
- Many buyers use 5 to 10 days, with shorter windows used in competitive situations and longer periods for complex or older homes.
What happens if the appraisal is below the price?
- You can try to renegotiate, bring cash to cover the gap, or cancel if you kept an appraisal contingency; a waiver means the shortfall is your responsibility.
Does waiving appraisal stop the lender’s appraisal?
- No, most lenders still require an appraisal and may set repair or value conditions, and any shortfall becomes your responsibility unless the seller adjusts.
Is a preapproval enough to waive my loan contingency?
- No, preapproval helps but does not guarantee final approval; removing the loan contingency is safer when your lender is ready to close.
How long is escrow in Contra Costa?
- Many escrows run 21 to 45 days, with about 30 days common for conventional financing and longer for complex loans.
How much earnest money should I offer?
- It varies by price and competition; larger deposits can signal strength, but avoid amounts that put you at risk if a contingency must be removed.
