Should I Include Contingencies in My Offer? (Especially in Kalamazoo / Southwest Michigan)

When you make an offer on a home, one of the biggest strategic decisions is whether to include contingencies—conditions that must be satisfied for the deal to move forward. While contingencies offer protection for buyers, they also affect how appealing your offer looks to sellers. In the current Kalamazoo / Southwest Michigan market, understanding how contingencies play out locally is crucial.

What Are Contingencies, Again?

Contingencies are clauses in your purchase agreement that allow you to pause, renegotiate or walk away under certain conditions. Here are the most common ones:

• Inspection contingency – gives you the option to have a home inspected and negotiate repairs or credits

• Financing contingency – ensures your offer depends on your mortgage approval

• Appraisal contingency – protects you if the home’s appraised value is less than what you offered

• Home sale contingency – allows you to sell your current home first before finalizing your new purchase

If a contingency can’t be met (e.g. you can't get financing, or the inspection finds major issues), you typically have the right to back out without losing your earnest money.

Local Market Context: What’s Happening in Kalamazoo Right Now

To decide how aggressive or protective your offer should be, it helps to understand the current trends in Kalamazoo and the surrounding area.

• Price Trend Upward As of mid-2025, the median sold price in Kalamazoo is showing year-over-year growth. For example, in May 2025, the median home sold price in Kalamazoo was about $233,257, up ~3.8% from the prior year. Likewise, Kalamazoo County’s median home price is approximately $269,900, up ~4.7% from the prior year. This suggests continued demand and resiliency in pricing even as market conditions shift.

• More Inventory and Slower Pace Active listings in Kalamazoo County have increased. In July 2025, active listings climbed to 536 (up ~20.7% year-over-year), and new listings increased by ~17.5%. Also, the average days on market (DOM) have trended upward. In the July 2025 report, the DOM was about 33 days, up from 24 days in the prior year. In Kalamazoo city, homes are selling in around 18 days on average (as of recent data) compared to 14 days a year ago.

• Still a Seller’s Market, But Softening While Kalamazoo County remains classified as a seller’s market (demand often meets or exceeds supply), the trends indicate a gradual shift toward more balance—more inventory, slightly slower sales and more room for negotiation.

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What This Means for Contingencies in Your Offer

Given these local dynamics, here’s how to approach contingencies in a practical, market-savvy way:

1. Inspection Contingency is Still Smart Even in a stronger seller’s market, inspection contingencies are standard and expected. Kalamazoo homes often age or have localized issues—foundation, roof, moisture, etc.—so having the safety of an inspection is wise. That said, you might consider shortening the inspection period or limiting repair requests to major issues to make your offer cleaner.

2. Use Financing Contingency Carefully Because the local market is still slightly favoring sellers, waiving or limiting the financing contingency can make your offer more attractive. But do this only if you are confident in your loan approval. Having a solid pre-approval letter from a local lender helps.

3. Appraisal Contingency Should Not Be Ignored Because property values are increasing, there’s more risk that buyers may offer above market. An appraisal contingency protects you if the appraised value comes in lower than your offer. In Kalamazoo’s market, especially now that prices are rising, this is an important safety net.

4. Home Sale Contingency = Risky In a city like Kalamazoo where inventory is improving and buyer competition still exists, a home sale contingency weakens your offer. Sellers often prefer buyers who are not contingent on selling their current home.

Example Scenario in Kalamazoo

Imagine two offers on a home:

• Offer A: Includes inspection, appraisal, and financing contingencies, with a 10-day inspection window

• Offer B: Omits inspection requests, includes only financing contingency, and offers a faster closing

In a hot listing environment, the seller may prefer Offer B despite its higher risk, because it feels more certain. But if you add strategic protections (e.g. shorter inspection window, pre-approval, limited repair requests), you can make your offer strong and safe.

Final Thoughts

In Kalamazoo / Southwest Michigan’s evolving market, contingencies remain valuable—but how you structure them matters. A well-balanced offer includes protection while still being clean enough to compete.

Working with a local agent who understands these nuances is key. At the Keefer Fischer Team, led by Kerry Keefer Fischer, we help buyers craft offers that balance protection with competitiveness so you’re positioned to win the home you want without unnecessary risk.