What Happens After You’re Under Contract? Why Contingencies Still Matter

What Happens After You’re Under Contract? Why Contingencies Still Matter

You’re under contract, congrats, right? Not so fast. If you’re a home seller or buyer in the Chicago suburbs, especially in areas like Glen Ellyn, Wheaton, or Lombard, understanding contingencies is crucial. Just because a contract is signed doesn’t mean the deal is done. The contingency period can make or break the transaction, and knowing how to navigate this phase helps avoid surprises, delays, or worse, deals falling through.

Prefer to watch instead of read? Hit play below for a quick 2-minute breakdown.

What Are Contingencies in Real Estate?

Contingencies are specific conditions written into the purchase agreement that must be satisfied before a sale can close. For example:

• The buyer must obtain loan approval.

• The home must pass inspection.

• The buyer must review disclosures and reports.

• The property must appraise at or above the agreed purchase price.

These clauses give the buyer time to do their due diligence, and if anything goes wrong during this phase, they can legally walk away from the deal.

The Typical Contingency Timeline in DuPage County

In most contracts in DuPage County, the contingency period spans 5 to 20 days. The exact length depends on what was negotiated in the offer. During this time, buyers will:

• Lock in their mortgage financing.

• Conduct home inspections.

• Review seller disclosures and reports.

This period is critical. If a buyer finds something concerning, or if financing or appraisal falls short, they have the right to back out without losing their earnest money deposit.

What Happens If the Home Doesn’t Appraise?

Let’s say you’re selling your home in Glen Ellyn for $600,000, but the appraisal comes in at $575,000. The lender will only finance based on the appraised value. So what now?

A few things can happen:

• The buyer covers the $25,000 gap out of pocket.

• The seller agrees to reduce the price.

• Both parties meet in the middle.

• The deal falls apart if no agreement is reached.

This is why working with a local real estate expert who understands how to prepare, price, and negotiate homes in the Chicago suburbs is essential.

The Earnest Money Myth: When Is It Really at Risk?

Buyers often put down an earnest money deposit to show they're serious. But that money isn’t at risk until contingencies are officially removed. If the buyer backs out within the contingency period for a valid reason, they get their deposit back. Once the contingencies are waived, however, things become much more final, and walking away could cost them.

Why Sellers Shouldn’t Celebrate Too Early

We get it, being “under contract” feels like a done deal. But sellers in DuPage County should wait to celebrate until the contingencies are removed. We always advise our clients: don’t start packing just yet.

Here’s why:

• The buyer can still walk away for multiple reasons.

• The seller can’t keep the earnest money if contingencies are still active.

• Unexpected issues may surface in the inspection or appraisal.

Once contingencies are removed in writing, then it’s safe to start thinking about your move.

The Power of a Strategic Agent

This is where an experienced real estate professional makes a difference. At The Bulava Group, we:

• Vet the buyer’s financials upfront.

• Ask smart questions to listing agents and lenders.

• Push for timely contingency removal.

• Keep everyone aligned with the contractual timelines.

This gives our sellers more confidence and reduces surprises.

Have questions about buying or selling in DuPage County? We’re happy to help, just reach out!