What is a 'contingency' in a real estate purchase contract?
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Explanation
Common contingencies include financing (loan falls through), inspection (reveals major issues), and appraisal (property appraises below purchase price). These protect the buyer by allowing them to exit the deal and receive their earnest money back if the condition isn't met. Waiving contingencies makes an offer more attractive to sellers but increases buyer risk.
Closing costs typically range from 2-5% of the home purchase price and include fees for the mortgage lender, title company, appraisal, and various other services.