Buying in Millbrae or anywhere in San Mateo County and hearing talk about “waiving contingencies”? You’re not alone. In a competitive Peninsula market, sellers often prefer cleaner offers, and that can make your decisions feel high stakes. You want to win the home without taking on unnecessary risk.
This guide breaks down buyer contingencies in clear terms, with typical timelines and local practices you can expect in Millbrae. You’ll learn how each contingency protects you, how it affects offer strength, and practical ways to balance safety with competitiveness. Let’s dive in.
What contingencies are
Contingencies are clauses in your purchase contract that must be satisfied for the sale to proceed. They protect you by giving time to verify the property, your financing, and key documents. If a contingency isn’t met, you may be able to cancel and recover your deposit if you follow the contract steps on time.
In San Mateo County, standard forms from the California Association of Realtors are used. Those forms let you set each contingency timeline. Local market norms influence how short these periods are, especially in multiple-offer situations.
Core contingencies to know
Inspection contingency
The inspection contingency lets you hire a general home inspector and specialists as needed, such as pest, roof, HVAC, chimney, or sewer scope. You can request repairs or credits, or cancel if findings are unacceptable within the timeline.
- Typical timing: 7–10 days in many markets; 3–5 days is common in competitive offers.
- Practical tip: Book inspectors immediately after acceptance. Specialist schedules can be tight.
Loan contingency
The loan contingency protects you if you cannot obtain the financing described in your contract by the deadline. If you remove this contingency and later cannot close, your deposit may be at risk.
- Typical timing: 14–21 days in many transactions; 7–10 days is possible in competitive situations with strong lender preparation.
- Practical tip: A full, underwritten pre-approval reduces the chance of surprises.
Appraisal contingency
If the appraisal comes in below the purchase price, this contingency allows you to renegotiate, bring extra cash, or cancel. On the Peninsula, some buyers commit to covering an appraisal gap or waive the appraisal contingency to strengthen an offer, which increases risk.
- Typical timing: Often aligned with the loan timeline, since lenders order appraisals early in the process.
- Practical tip: Government-backed loans have specific appraisal and condition requirements that can affect repairs and timing.
Other protections you may use
Title review
You’ll receive a preliminary title report to review easements, liens, and other exceptions. You can ask the seller to clear issues or cancel if there are unacceptable encumbrances.
- Typical timing: 5–10 days after receiving the report.
HOA and condo documents
For condos and planned communities, you review bylaws, reserve studies, minutes, insurance, and any assessments or use restrictions. These can impact financing and your long-term costs.
- Typical timing: 7–10 days after document delivery.
Sale-of-home contingency
Some buyers condition their purchase on selling their current home. In multiple-offer situations on the Peninsula, sellers often view this as a weaker term unless offset by other strong factors.
- Typical timing: Negotiated. Sellers may require short windows or kick-out clauses.
Required disclosures and other addenda
- Natural Hazard Disclosure: You review state-required hazard information.
- Lead-based paint disclosure for homes built before 1978.
- Program-specific loan or insurance conditions when applicable.
Millbrae market realities
Millbrae is part of a competitive San Mateo County market where multiple offers are common in many neighborhoods. In these cases, sellers and listing agents often prioritize fewer or shorter contingencies to reduce the risk of delays or cancellations.
That said, intensity varies by price point and property. Not every listing is a bidding war. Homes with longer days on market or off-market opportunities sometimes accept more traditional contingency timelines. Your agent should gauge competitiveness for each property and right-size your contingency strategy.
How contingencies affect offer strength
Sellers often choose an offer that feels most certain to close, even if the price is slightly lower. Shorter contingency windows reduce uncertainty and can improve your position. The tradeoff is risk. Removing or shortening protections means you must move faster and may have fewer exit options.
A balanced approach many Peninsula buyers use includes:
- Underwritten pre-approval from your lender.
- Shortened inspection period, rather than waiving it.
- Shortened loan contingency to what your lender can confidently meet.
- A reasonable appraisal plan, such as a defined gap you’re willing to cover if needed.
Practical strategies that work in Millbrae
Shorten, don’t waive when possible
A 3–5 day inspection window often preserves protection while signaling strength. For the loan, ask your lender what shortest timeline they can meet with full underwriting. Put those days in writing and meet every deadline.
Show strong financial readiness
Provide clear proof of funds for your down payment and earnest money. If your lender can issue robust documentation, such as a full underwriting approval, include it with your offer.
Plan your appraisal approach
If you are prepared to cover a defined shortfall, spell it out with an appraisal gap amount. If you waive the appraisal contingency entirely, understand you may need to bring extra cash if the appraisal is low.
Consider an “as-is” offer with inspections
“As-is” focuses on price and timing by limiting seller repair obligations. You still typically receive legal disclosures. Many buyers pair an as-is posture with a short inspection period to keep some leverage if major issues appear.
Match the seller’s timing
A faster close or flexible close date can help. Coordinate with your lender so your contingency periods and escrow length align with what you can realistically complete.
Earnest money and your deposit
In California, you place an earnest money deposit into escrow shortly after acceptance. Escrow holds the funds until closing. Your ability to recover the deposit depends on whether you have an active contingency and follow the contract’s cancellation procedures on time.
You generally can cancel and recover your deposit if you exercise a contingency properly within its window. Once you remove a contingency in writing, you give up that protection. If financing fails after removing the loan contingency, you may be in breach and risk losing your deposit.
Common risk scenarios
- Removing a contingency, then needing to cancel later. This can put your deposit at risk and may expose you to damages claims.
- Missteps with notice. If you try to cancel but do not follow the form or timing required by the contract, escrow may not release your funds.
- Disputes over deposit release. Escrow can hold funds until both parties agree or a court resolves the issue.
Safeguards that protect you
- Follow the contract exactly. Use the correct forms and timelines for notices and removals.
- Keep lender documentation. Maintain written records of underwriting status and any denial letters.
- Clarify dates in writing. Specify contingency deadlines in addenda or instructions, for example, a stated date and time.
- Consult a real estate attorney when large deposits or unusual terms raise concerns, or when title or easement issues are complex.
Buyer checklist for Millbrae
Pre-offer prep
- Secure underwritten pre-approval or as close as possible.
- Gather proof of funds, ID, and documents escrow will need.
- Align with your agent on contingency lengths that fit the property and competition.
- For condos, have your agent and lender screen for common HOA red flags.
After acceptance
- Order inspections immediately. Add specialists like sewer scope, roof, or pest based on the property.
- Submit your loan application and documents right away.
- Review title and HOA packages as soon as they arrive.
- If issues arise, notify the seller within the contingency period to negotiate or cancel per the contract.
Sample timeline ranges
- Inspection: 3–10 days (3–5 in competitive cases; 7–10 in more typical settings).
- Loan: 7–21 days (7–10 if underwritten and fast; 14–21 in many transactions).
- Appraisal: usually ordered early and returns within the loan period.
- Title and HOA review: 5–10 days after document delivery.
- Escrow length: many conventional deals close in roughly 30–45 days, though shorter or longer timelines are negotiated case by case.
When to bring in pros
- Your agent: to right-size contingency periods for the specific listing and your risk tolerance, and to structure repair or credit negotiations.
- Your lender: to confirm the shortest realistic loan and appraisal timelines, and to document underwriting strength for your offer.
- A real estate attorney: for complex title matters, unusual contract terms, or high deposit risk.
Buying in Millbrae is competitive at times, but you do not have to choose between safety and strength. With the right preparation, you can shorten contingency windows thoughtfully, keep key protections, and move with confidence.
If you want help crafting a competitive, safe offer strategy tailored to a specific Millbrae home, reach out. Schedule a Consultation with Sayage Realty Group to plan your next step.
FAQs
What is a contingency in Millbrae home purchases?
- A contingency is a contract clause that must be satisfied for the sale to proceed, such as inspections, loan, or appraisal. If unmet, you may cancel within the deadline and protect your deposit.
How long are inspection and loan contingencies locally?
- Inspection periods are often 7–10 days, or 3–5 days in competitive cases. Loan contingencies are commonly 14–21 days, or 7–10 days with strong underwriting.
How does a low appraisal affect my offer in San Mateo County?
- If the appraisal is low, you can renegotiate, bring cash to cover the gap, or cancel if you kept an appraisal contingency. Some buyers use an appraisal gap pledge in competitive situations.
When can I get my earnest money back in California?
- If you cancel within an active contingency period following the contract’s procedures, you generally can recover your deposit. After you remove a contingency, that protection is usually gone.
Will a sale-of-home contingency hurt my offer in Millbrae?
- Often yes in multiple-offer situations. Sellers tend to prefer offers not dependent on another sale, unless paired with other strong terms like higher price or larger deposit.
