When searching for a house for sale, you may come across the term "contingent." This keyword is crucial to understand as it provides valuable information about the property's status and potential availability. In this guide, we will explain what "contingent" means, outline its benefits, and provide examples of situations where this term is commonly used.
I. What Does "Contingent" Mean in the Context of a House for Sale?
Definition: "Contingent" refers to a status given to a property listing indicating that an offer has been made and accepted by the seller, but certain conditions must be met before the sale can be finalized.
It implies that the property is under contract and unavailable for new offers until the contingencies are satisfied or waived.
II. Benefits of Understanding the "Contingent" Status:
By understanding what "contingent" means, you can better navigate the real estate market and have a clear understanding of a property's availability.
It helps you avoid wasting time and effort on properties that are already under contract.
A contingent property may still be available
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City: Los Angeles, CA
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As someone who recently started the house hunting process, I must admit that I was a little overwhelmed by the various terminologies used in real estate listings. When I came across the phrase "contingent" in a house for sale ad, I immediately turned to the internet for answers. That's when I discovered this amazing website that not only explained what a contingent house meant but also provided additional tips and insights. The content was presented in such an engaging and light-hearted manner that I couldn't help but admire the effort
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Is it better to be contingent or pending?
If a home is listed as pending, all contingencies have been met and the sale is further down the closing path, with most of the paperwork in place — but the transaction has not yet been completed. You are more likely to be successful making an offer on a contingent home than a pending one.
Can a seller accept another offer while contingent?
Contingency with a kick-out clause
That means the seller can continue to show the home and accept offers during the sale contingency period. If the seller gets a better offer, they'll allow the original buyer 72 hours to drop the sale contingency and proceed with the deal.
How long does a contingent offer last?
30 to 60 days
The contingent period usually lasts anywhere from 30 to 60 days. If you have a mortgage contingency, the buyer's due date is usually about a week before closing. Overall, a home stays in contingent status for the specified period or until the contingencies are met and the buyer closes on their new house.
What is difference between pending and contingent?
The difference is that contingent listings still need to meet one or more specific conditions before moving forward. With pending deals, conditions have been met, and both parties are planning to move forward to closing.
Why don't sellers like contingent offers?
Contingent offers provide protection to buyers. But there are risks involved, especially for sellers. Because contingent offers require some other event to take place – such as an appraisal of a home for a certain amount or a home inspector giving a residence a passing grade – they can fall through.
Is it worth looking at a house that is contingent?
Bottom line. If you're looking at contingent listings, work with your Realtor to identify what the contingencies are and whether it's worth trying to make an offer. While the odds are against you, there's still a chance that the sale could fall through and you'll have the opportunity to buy the home.
What does contingent mean in a house sale?
Contingent means “depending on certain circumstances.” In real estate, when a house is listed as contingent, it means that an offer has been made and accepted,