If you sell or sell a house, you’ve probably heard of a contingency – terms and conditions that must be met for sales to move forward. But how often do these terms actually cause transactions to collapse?
Simple answer: Not too often. According to the National Association of Realtors (NAR), only about 6% of home purchase agreements have ended in the three months leading up to June 2025. That is, most transactions, even if they are contingent, are closing. Below, this Redfin article breaks down how often conditional offers fall, why some contracts are off track, and what buyers and sellers can do to keep their transactions on track.
What is an accidental offer?
An incidental offer is a purchase agreement that moves forward only if certain conditions are met. These conditions – Conditions known as contingencies act as safety nets and provide buyer protection if something is not done as planned or the issue is not revealed. If these conditions are not met, the buyer can regain the transaction without losing a serious money deposit.
Example: Imagine buying a house built in the 1940s. Conditions for an offer that requires the electrical system to be updated as knob and tube wiring is outdated and unsafe. If the inspection confirms that the wiring has not been updated and the seller refuses to fix it, the accident allows you to leave without penalty.
There are general reasons why conditioning is offered
The reality is that most accidental offers will result in closure. However, even with protection in place, some accidental offers can fall for the next time.
Funding Issues: Changes in employment, debt, or credits during underwriting. Low rating: Buyers and sellers cannot agree to price adjustments. Inspection results: Major repair or safety concerns that the seller will not address. Title Issues: Lien, tax, or property ownership disputes cannot be easily resolved. Delay in Home Sales: Buyer’s existing home is not on sale on time.
How significant contingencies affect transactions
Let’s take a look at some of the common contingencies that are written into a real estate contract. These will provide you with better ideas about what to expect from your own home buying or selling process.
Funding contingency
Funding contingency is one of the most common contingencies. It simply means that the buyer’s offer depends on their lender approving their mortgage.
Even if the buyer is approved in advance, the lender will carry out a detailed underwriting process after signing the contract. During this process, lenders examine income, credit history, employment, and debt-to-income ratios.
If something changes, such as a new job or an increase in debt, the loan may be denied. In that case, the contingency of fundraising allows the buyer to reclaim and collect the vigorous money. Funding issues are one of the most common causes of delays, but they are not the main perpetrators of accidental offers.
Evaluation contingency
The contingency of the valuation means the home is worth the purchase price and protects both the buyer and lender. Before confirming your mortgage, lenders will need an independent valuation to ensure they are not lending beyond the market value.
The evaluator considers the following factors:
Recent sale of homes that can be compared to the area of the house condition
If the rating is low – for example, if a $450,000 home is $440,000 – the buyer can bring in extra cash or ask the seller to lower the price. If an agreement is not reached, the buyer can leave without penalty.
The evaluation is a common reason for delayed closures. NAR data show that valuation issues cause about 6% of the delay, making it one of the most important contingents in a market, particularly where bidding wars exceed the value of prices.
Unforeseen circumstances of inspection
Due to unforeseen circumstances of inspection, buyers can hire professionals to check the condition of the home, such as roofs, foundations, plumbing, electricity, HVAC, etc. If a major issue is found, the buyer can request repairs, negotiate credits, or leave.
Most issues are minor, but inspections can even delay or derail trade. In particular, about 20% of buyers have abandoned the unforeseen tests in recent NAR surveys.
Title Contingency
The title of the house is essentially a record of its ownership. In addition to current ownership, it also shows who owned it in the past. Due to the unforeseen circumstances in the title, we guarantee that the ownership of the home is clear and there are no legal claims. Title search can reveal disputes regarding liens, unpaid taxes, or property ownership.
If an issue arises that cannot be resolved immediately, the contingency of the title allows the buyer to leave the contract. This is less common than fundraising or testing issues, but it is an important safeguard that prevents buyers from inheriting legal complications after closure.
Home Sale Contingency
For buyers who already own a home, the contingency of home sales can provide a breathing room. This gives the buyer a period of time to sell the existing property before proceeding with a new purchase. If their current home cannot be sold in time, they can leave without losing serious money.
This unforeseen situation protects buyers, but is not very popular with sellers. From a seller’s perspective, there is an added layer of uncertainty. To make it more manageable, the seller may include a kickout clause or a primary right to reject. These terms allow the seller to go to the market and move forward with another offer if the original buyer cannot sell the house quickly enough.
Do I need to submit a conditional offer?
Contingency is protection, not a disability. It provides the option to back out or renegotiate if an issue occurs. Abandoning them can be at risk – without inspection, funding or valuation contingencies, you may face unexpected repairs, loss of deposits, or covering valuation gaps.
If you are considering exemptions, make sure your finances are strong and you understand the risks. A common compromise is to shorten your emergency timeline rather than remove them.
FAQ: How often do accidental offers fall?
What happens if an accidental offer collapses?
If the contingency cannot be met, the buyer can leave the transaction and receive serious money. Unless the seller accepts the backup offer, the house will return to the market and the seller will need to find a new buyer.
Does the market affect how often contingent offers fall?
can. In a competitive market, buyers can sometimes grow financially to acquire homes, increasing the risk of funding and valuation issues. In a balanced or slow market, there is a high chance that contingencies will be resolved successfully.
Will the seller accept an accidental offer?
Yes, but it depends on the market. In slow markets with fewer buyers, sellers are more likely to accept accidental offers. In competitive or seller markets, they may support offers with fewer attached strings.
Can the seller return from an accidental offer?
Technically, sellers can change their minds, but it’s rarely simple or risky. Once you sign a purchase agreement, they are legally bound by its terms. If they return without a valid reason, they will usually have to return the buyer’s serious money and may face legal or financial penalties.
Do accidental offers take longer to close?
They can. Standard emergency periods are usually 10-30 days depending on the type, including testing, evaluation, fundraising, etc. Each can add steps to the process and extend the closing timeline. That said, some buyers choose to shorten accidental deadlines, make the offer more attractive and keep the deal moving forward.
What is the difference between an accidental offer and a pending sale?
An incidental offer means that the transaction is still waiting for certain conditions to be met. Once the unexpected situation is resolved, the home will move to a pending status. This brings us one step closer to closure.
>>Read more: What are accidental and pending? Find the difference
