Heard you need to waive contingencies to win a home in San Mateo? That is not the whole story. In a fast Peninsula market, the right contingency plan helps you compete while still protecting your deposit and your long-term budget. In this guide, you’ll learn what each contingency does, common timelines, and smart ways to right-size your offer for San Mateo and nearby cities. Let’s dive in.
Key contingencies and uses
Inspection contingency
This gives you time to complete a general home inspection and, if needed, specialty inspections such as roof, foundation, sewer, HVAC, plumbing, electrical, or pest. You can request repairs or credits, or cancel within the inspection window if serious issues come up. Many buyers also review seller disclosures and permit history during this period.
Loan contingency
This protects you if you cannot obtain the mortgage described in your contract by the loan contingency deadline. If financing fails through no fault of your own as defined in the contract, you can usually cancel and recover your deposit. Loan approval often depends on the appraisal, so these two items usually move together.
Appraisal contingency
If the property appraises below the contract price, this contingency lets you renegotiate, cover the difference in cash, dispute the appraisal, or cancel if protected. Some buyers rely on the loan contingency alone, but that may not cover every appraisal gap scenario. In competitive offers, buyers sometimes limit but do not fully waive appraisal protections.
Title review contingency
You get time to review the preliminary title report and any exceptions. If title defects such as liens or unresolved easements are found, the seller typically cures them before closing. If a defect cannot be resolved, you may cancel under this contingency.
HOA and documents
For condos or homes in common-interest communities, this gives you time to read CC&Rs, bylaws, budgets, reserve studies, meeting minutes, and any special assessments. HOA rules and finances can change your monthly costs and future resale value. Use this period to confirm you are comfortable with the obligations.
Disclosure and hazard review
California sellers must provide statutory disclosures, including the Transfer Disclosure Statement and natural hazard disclosures. You use your contingency period to verify these, check permits, and investigate any noted issues like flood or seismic risks. A disclosure review is not a substitute for inspections.
Waivers and as-is offers
Some buyers shorten or waive contingencies to stand out. Doing so can increase risk, since canceling later for a waived reason may cost your deposit. An “as-is” offer may still keep a short inspection right, which reduces seller repair duties while shielding you from major surprises.
Typical timelines in San Mateo
Contingency timelines are negotiated and measured in calendar days from acceptance. Local practice across San Mateo, San Francisco–Redwood City, and South San Francisco often favors shorter periods for competitive homes. Here are common ranges used in Peninsula transactions:
- Inspection: often 7 to 10 days, sometimes 5 to 7 in active situations
- Loan: commonly 14 to 21 days, sometimes shortened to 7 to 10 with strong pre-approval
- Appraisal: often aligned with loan, 7 to 21 days based on lender scheduling
- HOA/doc review: usually 3 to 10 days, depending on document availability
- Title review: typically 7 to 14 days
- Escrow close: often 17 to 30 days, as negotiated
These timelines interact. Inspection items are often resolved before you remove the loan contingency. Appraisal results can drive your loan approval timeline. Once you remove a contingency in writing, your deposit can become non-refundable for that issue.
How contingencies protect your deposit
Contingencies create time-limited conditions that let you cancel and recover your deposit if certain events occur. The key is the deadline. If you remove a contingency or it expires, your deposit may no longer be refundable for that issue.
Contracts also define whether you can terminate or require the seller to cure. Inspection results often lead to negotiations for repairs or credits. Without an inspection contingency, your leverage to request changes is very limited.
Waiving protections raises your financial exposure if problems surface or financing falls short. A careful plan balances your desire to win the home with the need to manage risk. Your deposit is usually refundable only during active contingency periods.
Peninsula market realities
On the Peninsula, single-family homes and well-prepared listings often attract multiple offers. Sellers tend to favor offers with fewer or shorter contingencies and quick close timelines. Buyers with larger down payments or strong cash reserves sometimes narrow or waive protections to compete.
That approach can win the bid, but it raises the risk of unexpected repairs, permit issues, or appraisal gaps. A thoughtful strategy often beats an all-or-nothing waiver. Shortening critical contingencies while preparing thoroughly before you write can strike the right balance for San Mateo and nearby markets.
Right-size your contingencies
Pre-offer prep
- Obtain a strong pre-approval or fully underwritten pre-approval from your lender.
- Ask your lender about pre-underwriting and what conditions remain to be cleared.
- When possible, do pre-offer inspections or walkthroughs if the seller allows.
- Gather proof of funds and be ready to document your down payment.
Inspection tactics
- Keep a short inspection window, such as 5 to 7 days, rather than waiving outright.
- Target major systems first: foundation, roof, HVAC, plumbing, electrical, and sewer.
- Use a phased plan: a general inspection first, then specialty follow-ups if needed.
- Consider a repair credit or a capped seller contribution to show flexibility.
Appraisal and loan tactics
- Define an appraisal gap you can cover in cash and state the cap clearly in your offer.
- Shorten the loan contingency only if your lender can meet the timeline.
- If selling another home, consider structures that protect both timelines rather than waiving everything.
Earnest money
- A higher deposit can show strength, but know when it becomes non-refundable.
- Confirm your deposit schedule and how contingency removals affect refundability.
As-is with inspection rights
- Offering as-is while keeping a short inspection right can reduce seller repair concerns.
- If disclosures reveal known issues, factor them into price or credit requests upfront.
Special Peninsula checks
- Confirm any city or county requirements, such as sewer lateral inspections or replacement rules.
- Consider seismic-related reviews, retrofit history, or soft-story assessments when relevant.
- Review permit records for additions or renovations and verify known improvements.
Buyer checklist
- Secure lender pre-underwriting and document your funds.
- Choose your inspection plan: full, shortened, or targeted.
- Set your loan contingency length with your lender’s actual timeline.
- Calculate the maximum appraisal gap you can safely cover.
- If waiving any protections, get professional input before you write.
- Confirm earnest money timing and refundability triggers.
- Understand the written process for removing contingencies.
Mistakes to avoid
- Waiving all protections without pre-inspections or lender certainty.
- Pairing an unlimited price escalation with no appraisal safety net.
- Removing your loan contingency before resolving inspection issues.
- Underestimating the cash needed if the appraisal comes in low.
- Skimming HOA budgets or meeting minutes instead of a full review.
Plan your path
You can compete in San Mateo without taking outsized risks. A tuned contingency plan, strong lender prep, and fast inspections help you move quickly and protect what matters most. If you want a tailored strategy for a specific home, get in touch.
Have questions about crafting a competitive offer on the Peninsula? Connect with Julie Flouty to build a clear plan that fits your timeline, risk tolerance, and budget.
FAQs
Can I waive the inspection contingency and still get a mortgage?
- Yes. Lenders still require an appraisal, but waiving your inspection only removes your contractual right to cancel based on inspection findings.
What if the appraisal is lower than the price and I have no appraisal contingency?
- You may need to pay the difference in cash, try to renegotiate, or risk default if financing fails, since many lenders will not fund above appraised value.
How long do I have to cancel and keep my deposit in San Mateo?
- Only during the contingency periods stated in your contract. After you remove a contingency in writing, your deposit often becomes non-refundable for that issue.
What disclosures are California sellers required to provide?
- California law requires broad disclosures, including a Transfer Disclosure Statement and natural hazard information, but disclosures do not replace your own inspections.
How should I handle contingencies in a multiple-offer situation on the Peninsula?
- Shorten critical timelines rather than waiving all protections, consider an appraisal gap cap, strengthen your earnest money, and offer a fast close when possible.
How much time do I get to review HOA documents for a San Mateo condo or townhome?
- HOA and document review periods are typically negotiated at about 3 to 10 days, depending on how quickly the documents are available.
