A “contingency,” is an escape-clause that is added in-writing to a contract which allows a buyer to back out of the transaction if certain conditions aren’t met.

Some contingencies, often called “riders” – like attorney approval of the contract, or the passing of a home inspection-are obviously designed to protect buyers from a poorly written contract or a defective home.

Other purchase contingencies may hinge on the buyer’s current living situation, or his or her cash-flow. For example, when it comes to contingencies many first-time buyers can be better prospects for a seller’s home than move-up buyers. Why? Because offers from homeowners usually are contingent upon the sale of their present home. And, even if a move-up buyer has an offer for their home in-hand, their buyer’s offer may be contingent on another contingency (or sale) and so on down the line. If one transaction in the chain falls through, they all might.

Cash offers can also be more attractive to sellers.

Why?
After all, the seller will get their money at closing whether or not the buyer has cash or takes out a loan.

True, but cash offers don’t require lender approval, and loan approval is never a certainty and may delay or prevent closing. (Incidentally, for this reason, buyers who get pre-qualified for a loan have an edge over other buyers. A pre-qualified buyer is the same as a cash buyer.)

Buyers offering a larger-than-customary amount of “earnest money”, (a deposit that accompanies an offer) can be more appealing too. More money deposited with the signed contract often demonstrates greater sincerity and motivation to close the transaction.