The beautiful state of California has so much to offer both visitors and homebuyers. With a wide variety of
geographic regions and entertainment – the real estate market in California is hot.  

If you’re a homebuyer searching for a home within the state, you may be tempted to drop contingencies to appeal more
to home sellers; however, there are some contingencies that must not be dropped for your own protection. 

The inspection

Your real estate agent will likely recommend you get a home inspection before purchasing a property. As a buyer, you
have the right to have the home you’re about to purchase examined for any issues, usually within a set timeframe
after signing a purchase and sales agreement. 

After the inspection is complete, with a contingency in place, you have the right as a buyer to back out of the sale
and get your earnest money deposit back if the seller refuses to make needed fixes.

Appraisal contingency

When you purchase a home, you put in an offer based on the asking price for the property, and then your lender will
order an appraisal for the house. If the assessment comes in at a lower amount than what you’re paying for the home,
you’re responsible for the difference.  

With an appraisal contingency, you are acquitted if the appraisal comes in too low. The clause usually states, the
appraisal amount comes within 5-10% of the purchase price of the home. From this point, you can determine if you’re
overpaying for the property, leading you to back out of the sale. 

Purchasing a home in California comes with it’s own challenges, so it’s essential to have the right protections in
place to safeguard your homebuying journey.