When it comes to browsing through real estate listings, you may come across the term "contingent" quite frequently. But what does contingent mean in real estate listings? In simple terms, it refers to a specific condition or requirement that needs to be met before a sale can be finalized. Understanding this term is crucial, as it can greatly impact your buying or selling experience. In this article, we will delve into the meaning of contingent in real estate listings, its implications, and how it affects buyers and sellers.
In the realm of real estate, a contingent status indicates that an offer has been made on a property, but certain conditions must be satisfied before the sale can proceed. These conditions can vary widely, depending on the specific circumstances of the transaction. Some common contingencies include financing, home inspections, appraisal values, and the sale of the buyer's current property.
Let's take a closer look at some of these contingencies. Financing contingency is one of the most common contingencies in real estate transactions. It means that the buyer's ability to secure a mortgage loan is a condition for the purchase. If the buyer fails to obtain financing within a specified time frame, the contingent status may be lifted, and the seller can
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What does contingent mean in a real estate listing?
Discover the meaning of the term "contingent" in real estate listings and how it affects the buying and selling process in the US. Find out how contingencies protect both buyers and sellers, and learn about common contingencies you may come across during your real estate journey.
When browsing through real estate listings, you might have come across the term "contingent" and wondered what it means in the context of buying or selling a property. Understanding the meaning of contingencies is crucial for both buyers and sellers, as it determines the status of a real estate transaction. In this article, we will delve into what "contingent" means in a real estate listing and shed light on its significance.
What Does Contingent Mean in a Real Estate Listing?
In the realm of real estate, the term "contingent" refers to a property that has an accepted offer but is still subject to certain conditions being met. These conditions, known as contingencies, are requirements that need to be fulfilled for the sale to proceed smoothly. Essentially, a contingent listing indicates that the property is under contract, but the sale is not yet finalized.
Types of Contingencies
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 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.
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.
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.
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
A property listed as contingent means the seller has accepted an offer, but they've chosen to keep the listing active in case certain contingencies aren't met
How often do contingent offers fall through?
Among contingent offers, less than five percent fall through, according to multiple sources. Broken offers may arise because the buyer isn't able to secure financing or because the seller isn't willing to lower their listing price after a low appraisal.