You have one shot to make a clean offer in Virginia Beach, and contingencies can either protect you or cost you the home. If you are eyeing properties from the North End to Chic’s Beach, you need a clear plan for what to keep, what to shorten, and what to waive. A few well-placed protections can save you thousands and reduce stress. This guide breaks down how contingencies work in Virginia, common timelines in Virginia Beach, and smart strategies to stay competitive without taking on unnecessary risk. Let’s dive in.
What a contingency is
A contingency is a contract clause that makes your purchase depend on a specific event or verification. Examples include getting a mortgage, completing a home inspection, or receiving a satisfactory appraisal. If the contingency is not met by the deadline, you typically have the right to terminate and recover earnest money per the contract terms.
Contingencies include explicit timelines, how to remove them in writing, and what happens if deadlines are missed. Once you remove a contingency, backing out without another contractual reason can put your earnest money at risk. Standard language is used across Virginia, and you will see it in the forms and guidance from Virginia REALTORS.
Why contingencies matter
Contingencies protect you from big unknowns like hidden defects or loan denial. They also give sellers confidence that the deal will move forward if those items check out. More and longer contingencies reduce a seller’s certainty, which can weaken your offer in competitive areas.
The key is balance. Protect your budget and your risk tolerance while keeping your offer clean and timely.
Common contingencies in Virginia Beach
Home inspection contingency
- Purpose: Time to inspect the home and negotiate repairs, credits, or terminate for significant defects.
- Typical scope: General inspection plus specialty checks such as pest/WDI, HVAC, mold, radon, sewer scope, or roof.
- Local timing: Commonly 5 to 10 calendar days from acceptance. Some buyers request 7 to 14 days. In competitive offer rounds, buyers may shorten to 3 to 5 days or waive, which increases risk.
- Coastal notes: Pay close attention to roof, decks, bulkheads or seawalls, corrosion from salt air, and termites or other wood-destroying insects.
Financing contingency
- Purpose: Lets you cancel if you cannot secure a mortgage commitment that is acceptable to you.
- Typical timing: Often 21 to 30 days for loan commitment. Some loans may require 30 to 45 days.
- Practice tips: Strong pre-approval from a reputable, local lender can speed underwriting and strengthen your offer. The Consumer Financial Protection Bureau outlines the mortgage steps and typical timelines.
Appraisal contingency
- Purpose: Protects you if the lender’s appraisal comes in below the contract price.
- Timing: Appraisal is usually ordered soon after loan application and often returns within 7 to 14 days. It typically fits within the financing window.
- Remedies: Renegotiate the price, bring cash to cover the gap, or terminate if the contingency allows. In fast-moving coastal pockets, some buyers add appraisal gap coverage to stay competitive.
Title, survey, and HOA document review
- Purpose: Time to review title commitment, survey, easements, covenants, and HOA resale documents for unacceptable restrictions or defects.
- Timing: Often 5 to 14 days after receipt of documents.
- Local notes: Virginia Beach condos and planned communities may have specific HOA review periods. Coastal parcels can include dune or access easements.
Sale-of-home contingency and kick-out clauses
- Purpose: Your purchase depends on selling your current home.
- Timing: Commonly 30 to 60 days, but many sellers in tight markets prefer shorter timelines or avoid this contingency.
- Kick-out: Sellers sometimes keep marketing the property and can accept a backup offer, giving you a set window to remove your contingency.
Coastal and specialty contingencies
- Insurance review: Coastal wind and flood insurance can impact affordability and loan approval.
- Flood zone review: Check the FEMA Flood Map Service Center for flood zones and elevation details.
- Lead-based paint: For homes built before 1978, federal law includes a 10-day period for lead risk assessment if you choose to use it. See the EPA’s lead disclosure overview.
Typical timelines and earnest money
- Inspection period: Often 5 to 10 days, with some buyers seeking 7 to 14 days for specialty inspections.
- Financing and appraisal: Loan commitment is commonly 21 to 30 days, with appraisals usually completed within 7 to 14 days after being ordered.
- Title and HOA review: Often 5 to 14 days after documents are delivered to you.
- Closing window: In Hampton Roads, a standard closing runs about 30 to 45 days from acceptance, depending on lender and title schedules.
- Earnest money: Amounts vary by price point and local practice. Many buyers put up 1 to 3 percent of the purchase price. Earnest money is typically due within a few business days after acceptance and is at risk if you breach after removing protections.
How contingencies affect your offer
Sellers prefer certainty. More contingencies, and longer timelines, can lower your odds in multiple-offer situations. This is especially true in sought-after areas like the North End and other low-inventory coastal neighborhoods.
Common seller preferences include tight inspection periods, clear pre-approval from a strong lender, limited repair asks, and flexibility on closing date. Some buyers add small appraisal gap coverage or increase earnest money to signal commitment. Each choice carries tradeoffs and should fit your budget and risk tolerance.
Smart ways to stay competitive and protected
- Get fully pre-approved. A complete, underwritten pre-approval from a local lender gives sellers confidence. Review NAR guidance on contingencies and offers for context on strengthening terms.
- Shorten, do not always waive. A 5-day inspection period with a focus on major systems is often safer than waiving inspection.
- Book inspectors immediately. Line up general and specialty inspectors as soon as you go under contract.
- Clarify your repair approach. Many buyers limit requests to safety, structural, and system issues to keep negotiations smooth.
- Plan for appraisal outcomes. Decide in advance whether you can bring cash to cover a potential gap or whether you need the appraisal contingency.
- Be flexible on closing. A seller-preferred closing date can offset tighter contingencies.
Checklist before you write an offer
- Secure a written mortgage pre-approval from a lender familiar with coastal insurance and Hampton Roads underwriting.
- Gather proof of funds for earnest money and your down payment.
- List must-have inspection items: structure, roof, bulkhead or seawall, HVAC, pests/WDI, and moisture concerns.
- Decide your contingency posture: what you will keep, where you can shorten, and what you will not waive.
- Review lead disclosure if applicable for pre-1978 homes through the EPA’s guidance.
- Check flood zone status and potential insurance requirements using the FEMA Flood Map Service Center.
Sample contract timeline in Virginia Beach
- Day 0: Contract accepted. Deposit earnest money per contract instructions, often within 1 to 5 business days.
- Days 1 to 3: Schedule general and specialty inspections.
- Days 5 to 10: Complete inspections. Submit repair requests or remove the inspection contingency.
- Days 7 to 21: Lender orders appraisal. Appraisal typically returns in about 7 to 14 days while underwriting continues.
- Days 21 to 30: Loan commitment is common in this window. Title work progresses, and you lock in the closing date.
- Days 30 to 45: Typical closing range in Hampton Roads. Cash deals or streamlined files may close sooner.
Local due diligence for coastal homes
- Flood risk and insurance: Confirm zone, premiums, and lender requirements. Flood costs can affect monthly payments.
- Bulkhead or seawall: Inspect condition and understand maintenance responsibility.
- Salt air and wind: Evaluate exterior hardware, railings, HVAC units, and roofing for corrosion or accelerated wear.
- Termites and WDI: Order a WDI inspection. Wood-framed coastal structures are prone to pest activity.
- Easements and access: Review recorded easements that may affect beach access, dunes, or public right-of-way.
FAQs
What are contingencies in a Virginia purchase contract?
- Contingencies are clauses that make your purchase dependent on events like inspection, financing, or appraisal; if unmet by the deadline, you may cancel under the contract and keep your earnest money.
How long is a typical inspection period in Virginia Beach?
- Many contracts use 5 to 10 days, with some buyers requesting up to 14 days if specialty inspections are needed.
What happens if the appraisal is lower than my offer?
- You can try to renegotiate, bring cash to cover the gap, or terminate if your appraisal contingency allows; some buyers include limited appraisal gap coverage to stay competitive.
Can I waive inspection to win a competitive bid?
- You can, but it increases risk. Many buyers shorten the inspection period or limit repair requests to major safety and system items instead of waiving.
How much earnest money is typical in this area?
- Amounts vary by price point, but many buyers deposit 1 to 3 percent of the purchase price, due shortly after acceptance per the contract.
What disclosures apply to older homes?
- Federal law requires a lead-based paint disclosure for homes built before 1978, with a 10-day period available for risk assessment if you choose to use it.
A balanced contingency plan helps you protect your investment without losing ground in a competitive offer. If you want a clear, local strategy tailored to your goals and the specific home you’re pursuing, reach out to Rowland RE to start your tailored market consultation.
