Should You Waive Contingencies When Buying a Home in Pasadena?
Should you waive contingencies when buying a home in Pasadena?
Answer:
Waiving contingencies can make an offer more competitive in Pasadena, but it also increases buyer risk. Whether you should waive contingencies depends on the home’s condition, pricing, competition level, and your financial comfort. May Kunka helps buyers understand when waiving contingencies makes sense—and when it absolutely doesn’t.
Contingencies Are Protection—Not Just Paperwork
In competitive Pasadena markets, buyers often hear phrases like “clean offer” or “no contingencies.” This can create pressure to waive protections without fully understanding the risks.
Contingencies exist to protect you financially and legally. Waiving them should always be a strategic decision, not an emotional one.
1. What Are Contingencies?
Contingencies allow buyers to cancel or renegotiate if certain conditions aren’t met.
The most common contingencies include:
Inspection contingency
Appraisal contingency
Loan (financing) contingency
Each one protects you in a different way.
2. Why Sellers Like Offers With Fewer Contingencies
From a seller’s perspective, fewer contingencies mean:
Less risk of cancellation
Faster escrow
Fewer renegotiations
More certainty of closing
This is why contingency decisions matter so much in Pasadena’s competitive neighborhoods.
3. Inspection Contingency: The Biggest Risk Area
The inspection contingency protects you if inspections reveal issues.
Waiving it means:
You accept the home “as is”
You cannot renegotiate based on inspection findings
You take on full repair risk
In Pasadena—where many homes are older—inspection findings are common.
Waiving inspections blindly is rarely recommended.
4. Safer Alternatives to Waiving the Inspection Contingency
Some buyers strengthen offers without fully waiving protection by:
Completing pre-inspections before offering
Shortening inspection contingency timelines
Waiving minor repair requests while keeping major protections
Agreeing to informational-only inspections (with caution)
May helps buyers choose the safest option for each situation.
5. Appraisal Contingency: When It Matters Most
The appraisal contingency protects you if the home appraises below the purchase price.
Waiving it means:
You agree to cover any appraisal gap
You may need additional cash to close
Your lender will still only lend based on appraised value
This is especially important in Pasadena when:
You’re offering above asking
The home is highly competitive
Comparable sales are limited
6. Loan Contingency: Rarely Waived Without Preparation
The loan contingency protects you if financing falls through.
Waiving it can be risky unless:
You’re fully underwritten
Your financial profile is very strong
You’re working with a reliable lender
You understand the risk clearly
Many buyers shorten loan contingencies rather than waive them entirely.
7. When Waiving Contingencies Might Make Sense
Waiving or modifying contingencies may be reasonable when:
You’ve done thorough due diligence
The home is newer or well-updated
You have strong cash reserves
You understand potential repair costs
Competition is extremely high
The risk aligns with your comfort level
Even then, strategy matters.
8. When You Should NOT Waive Contingencies
Buyers should be very cautious about waiving contingencies when:
The home is older or in poor condition
There are limited disclosures
You’re stretching your budget
You lack cash reserves
You’re unsure about long-term plans
Protecting yourself is more important than winning at all costs.
9. Waiving Contingencies Doesn’t Guarantee You’ll Win
Many buyers waive contingencies and still lose.
Winning offers often combine:
Strong pricing
Clean but reasonable terms
Good communication
Seller-aligned timelines
Professional representation
Contingencies are just one piece of the puzzle.
Pasadena Market Insight
In 2025:
Some buyers are waiving or shortening contingencies on top-tier homes
Sellers still value inspection transparency
Appraisal risk is a major consideration
Buyers are more thoughtful and less reckless than in prior frenzy years
Smart buyers balance competitiveness with protection.
How May Kunka Helps Buyers Decide on Contingencies
May supports buyers by:
Evaluating risk property by property
Explaining real consequences clearly
Structuring offers that protect buyers where possible
Advising when flexibility helps—and when it hurts
Communicating confidently with listing agents
Her goal is to help you win without regret.
Final Thoughts: You Don’t Have to Gamble to Compete
Waiving contingencies is not a requirement to buy in Pasadena.
It’s a strategy that should only be used when it makes sense for you.
With May Kunka’s guidance, buyers can compete strongly while protecting their finances and peace of mind.
Not Sure Which Contingencies to Keep or Modify?
Contact May Kunka for buyer guidance on writing competitive offers without taking unnecessary risks.