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In real estate what does contingent mean ?
Unlocking the Mystery: In Real Estate, What Does "Contingent" Mean?
Hey there, fellow real estate enthusiasts! Today, we're going to dive headfirst into the fascinating world of home buying and selling. One term that often leaves people scratching their heads is "contingent." So, what does it mean? Let's unravel this mystery together!
Picture this: you stumble upon your dream home online, and your heart skips a beat. But wait, there's a tiny word attached to the listing: "Contingent." Don't panic! This simply means that the sale of the property is not a done deal just yet. It's like a gentle reminder saying, "Hold on, there are a few conditions that need to be met first."
In real estate, when a property is labeled as "contingent," it usually signifies that the seller has accepted an offer from a potential buyer. However, there are certain conditions that must be fulfilled before the transaction can be finalized. These conditions can vary, but some common ones include the buyer securing financing, completing a satisfactory home inspection, or successfully selling their current home.
Think of it as a rollercoaster ride with a few twists and turns. The buyer and seller have taken a seat
What is the term contigent mean in real estate
Understanding the Contingent Term in Real Estate Transactions in the US
In the realm of real estate, the term "contingent" holds significant importance. It refers to a specific condition or requirement that must be fulfilled before a real estate transaction can be completed. This review aims to provide a comprehensive understanding of what the term "contingent" means in the context of real estate in the United States.
Defining Contingent in Real Estate:
In the US real estate market, a property is considered contingent when an offer has been made by a potential buyer, but certain conditions must be met to finalize the sale. These conditions typically revolve around financing, property inspections, or the sale of the buyer's existing home. Contingencies act as safeguards for both buyers and sellers, ensuring that the transaction proceeds smoothly and fairly.
Types of Contingencies:
Financing Contingency: This contingency allows the buyer a specific period, usually 30-45 days, to secure a mortgage loan. If the buyer fails to obtain financing within the given timeframe, the contract becomes void, and the buyer can withdraw from the agreement without any financial penalty.
Inspection Contingency: Often referred to as a due diligence contingency, this provision grants the
Can you put an offer on a house that is contingent?
If you're interested in a property that's listed with an active contingent status, you may still be able to make an offer. While the initial offer will take precedence if all the contingencies are satisfied, making an offer can put you at the head of the line if the original deal falls through.
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?
For example, the buyer has specific obligations called contingencies, which include things such as loan approval, home inspection, and a home appraisal. If the buyer fails to meet these contingencies by a designated date, the seller can cancel the agreement and then accept another offer.
Not sure what a 'contingent' listing is? Here's a helpful article to help you decide if you should make the offer or move on.https://t.co/zPZJVYO2tW
— Sisters Real Estate Services (@SistersRealEst) December 11, 2019
How long is a contingent offer good for?
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.
Frequently Asked Questions
Why don't sellers like contingent offers?
If you spot an offer that's contingent upon the buyer selling their property, you should seriously consider passing it up. If you're reliant on two buyers getting financing and getting to closing, the chances are just too high your sale will be derailed.
Is it worth looking at a house that is contingent?
Owners whose home is in contingent status can accept a backup offer, and that offer will have precedence if the initial deal does not go through, so if you like a contingent property, it makes sense for you to make an offer on the listing so that you are in position to buy if something goes wrong with that transaction.