Step 17 to Selling Your Home: Financing Contingency Period

Step 17 to Selling Your Home - Financing and Appraisal Contingency Period

There’s usually more than one contigency when selling a home in addition to the home inspection contingency covered in the last step there’s also a  financing contingency. The financing contingency is an addendum that states that the buyers’ offer is contingent on being able to secure financing for the house.

Usually a buyer uses this clause to establish a  timeframe to apply for a mortgage and close on the loan. Part of the financing contigency includes a period of time to have the home appraised.

Financing Contingency: Appraisal Period

If the buyer is taking out a mortgage to finance the purchase, their lender will require a professional appraisal report. The buyer’s lender will order the appraisal, and the buyer will pay for it.

The appraiser uses a visual assessment along with county tax records, and comparable home sales to assess the value of the home. The appraisal typically occurs during normal business hours sometime after the home inspection period has closed.

You will not need to attend the appraisal. We will meet the appraiser at the home and walk them through the home and around the property. We’ll provide them with a list of upgrades and updates and answer any questions they may have about the property.

The appraisal usually takes about 30 minutes. Appraisals are conducted within the first 3 weeks of ratification. The appraisal report will be submitted to the lender for there review while processing the loan.

Once the buyer receives a copy of the appraisal report they’ll know whether the offer is within the appraised value, or if the price needs to be renegotiated.

Now, this shouldn’t come as a surprise.


A lender will not lend over the appraised value.

If for any reason the appraisal value is below the agreed upon sales price our options are to renegotiate, the buyer may choose to make up the difference or if we can’t come to an agreement the buyer may choose to void the contract.

In rare cases where we can prove appraiser error, we can dispute the appraisal and provide our comps for them to compare. This is not allowed by many lenders.

Financing Contingency Removal

The buyer has until the deadline specified in the sales contract to obtain and furnish a written a commitment approving their loan for the purchase of the home. This loan commitment is lender’s written approval granting a specific loan amount, conditions, and a set time limit for closing the loan.

Inspection period closes

Assuming all inspections, repairs, and contract changes have been successfully negotiated, the contingencies are removed, and we can move forward with settlement.

Questions? Please give us a call at 703-539-2053 or email us at [email protected].

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Step 1: Hire a Realtor

Step 2: You’ve Hired Your Realtor. What’s next?

Step 3: Declutter and Stage!

Step 4: Conduct a Pre-Listing Inspection

Step 5: Repairs

Step 6: Deep Clean

Step 7: Professional Photography

Step 8: We’ll Pre-Market Your Home

Step 9: We’re live on MLS, now what?

Step 10: Putting your home listing on 3rd party sites (Zillow,, Trulia, etc.)

Step 11: Time for Showings

Step 12: Week One on the Market

Step 13: You’ve got your first offer!

Step 14: We couldn’t come to agreeable terms with the buyer. What now?

Step 15: Offer was accepted! Congrats!

Step 16: The Home Inspection Period

Step 17: Financing and Appraisal Contingency Period

Step 18: Select a Title Company

Step 19: Scheduling closing date

Step 20: Hire Movers, Start packing!

Step 21: Utilities Transfer

Step 22: Home Owner’s Insurance Cancelation

Step 23: Hire a Cleaning Service

Step 24: Buyer’s Mortgage Approval

Step 25: Final Walkthrough

Step 26: It’s Closing Time!

Step 27: Review Us

Abraham Walker, Your Realtor

About the Author: The above article was written by Abraham Walker, Your Alexandria Virginia Real Estate Agent, helping clients market their homes to achieve high sales with a quick closing time is my main priority.

He’s the co-founder of Ask A Walker and can be found on YouTube, Facebook, and HERE on this blog.

Abraham can be reached via email at [email protected] or by phone at (703)539-2053.

He’s happy to answer all your real estate questions.

Thinking of selling your home? Check out my 20+ step process to selling your home. Or contact me now to start the home selling process. Same day appointments are available on a case by case basis.

Your Alexandria, VA Realtor, Abraham Walker, helps people sell and buy real estate in the following Northern Virginia area cities & neighborhoods: Kingstowne, Island Creek, Cameron Station, Overlook, Alexandria, Old Town, Belle Haven, Fort Hunt, Mount Vernon, Springfield, West Springfield, Burke, Lorton, Woodbridge, Lake Ridge, Manassas, Annandale, Fairfax, Arlington, McLean, Reston, Herndon and of course Vienna.