Where Contingencies Actually Stand in Northern Virginia Right Now

A buyer asked me last week whether she needed to waive her appraisal contingency to compete. My answer was no, not necessarily, and the data backs that up. I just got my hands on the latest contract trends report from Cardinal Title Group, pulling from 194 contracts written between August 4th and 12th across the DMV, and it gives a real, current snapshot of contingencies in Northern Virginia that I think many buyers and sellers need to see.

Let's start with financing. In Northern Virginia, 74% of contracts still include a financing contingency. That means only about a quarter of buyers are waiving it entirely. If you've been reading headlines about buyers throwing caution to the wind just to win a bid, that's not really what's happening here. Most people are still protecting themselves if their loan falls through, and honestly, that's smart. I tell my clients all the time that waiving a financing contingency should be a calculated decision, not a panic move because you think it's required to compete.

Appraisal contingencies tell a nearly identical story. 74% of Northern Virginia contracts kept that protection in place too. So if you're a seller expecting every offer to come in appraisal gap-free, temper that expectation a little. And if you're a buyer worried that keeping your appraisal contingency will tank your offer, the data says otherwise. Most of your competition is doing the same thing.

Home inspection is where things shift slightly. About 81% of contracts in our region kept a home inspection contingency, which is actually one of the higher rates I've seen come through in a while. That tracks with what I'm experiencing on the ground too. Buyers are still asking for inspections, even in competitive situations; they're just getting strategic about what they ask sellers to fix afterward. A full inspection contingency doesn't have to mean a laundry list of repair requests. Sometimes it's just peace of mind.

Now here's a number that surprised me a little. Only 13% of Northern Virginia deals closed in cash last week. The other 87% involved financing. With everything you hear about cash buyers and investors scooping up inventory, it's easy to assume cash is dominating the market. It's not, at least not here. Most people buying homes in Herndon, Reston, Ashburn, and the surrounding areas right now are getting a mortgage, which means loan approval timelines and lender requirements still matter enormously to how these deals come together.

Seller subsidies are also worth a mention. About 31% of Northern Virginia contracts included some form of seller-paid concession, whether that's toward closing costs or a rate buydown. That's meaningfully higher than what you'd see in a true seller's market where buyers have zero leverage. It tells me sellers are still willing to negotiate on the money side, even if they're not budging much on price itself.

Speaking of price, contract prices in our region were pretty evenly split. About 42% of homes went for list price, 41% went under list, and 17% closed above list. That's a far more balanced picture than the frenzy we saw a couple of years ago. And on days on market, roughly half of Northern Virginia listings are still sitting for 22 days or more before going under contract, while only about a quarter get snapped up in the first week. That pace matters if you're pricing a listing or timing an offer. This isn't a market where everything flies off the shelf in 48 hours anymore, and pretending otherwise does a disservice to both buyers and sellers.

Once a deal goes under contract, most Northern Virginia transactions land in that 16 to 60 day window before closing, which lines up with typical financed timelines. Nothing shocking there, but it's a good gut check if you're planning a move date around a purchase or sale.

So what does all of this actually mean if you're gearing up to buy or sell in Herndon, Reston, Ashburn, or anywhere else in our corner of Northern Virginia? It means the market is much more balanced and much less all-or-nothing than the noise online might suggest. Contingencies are still very much alive and well. Buyers aren't being forced to waive every protection they have, and sellers aren't getting away with ignoring subsidy requests either. Both sides still have room to negotiate; you just need to know where the real leverage sits, and that changes street by street, not just region by region.

If you have questions about anything here, I'm always just a call or text away. 202-409-7513.