This is a question I get all the time. Buyers browsing online listings come across a home they love only to see the word “contingent” next to it. It can be confusing and frustrating, especially if you are not familiar with real estate language.
So what does contingent actually mean in real estate? Let me break it down in plain English.
Contingent Means the Seller Accepted an Offer
When a home is listed as contingent, it means the seller has accepted an offer from a buyer, but certain conditions need to be met before the deal can close. These conditions are called contingencies. They are part of the purchase agreement and must be satisfied before the sale becomes final. In short, the home is under contract but not officially sold yet.
Common Contingencies in a Home Sale
There are many types of contingencies that can be included in an offer. Here are a few of the most common ones:
- Home inspection contingency: Gives the buyer the right to back out or renegotiate if a home inspection reveals issues.
- Appraisal contingency: Protects the buyer if the property appraises for less than the purchase price.
- Financing contingency: Allows the buyer to cancel if they cannot secure a mortgage loan.
- Home sale contingency: Makes the offer dependent on the buyer selling their own home first.
If any of these contingencies are not met within the agreed timeline, the deal can fall through.
How Contingent Is Different From Pending
This is another common point of confusion. A contingent listing is still technically active, because there are still conditions that need to be satisfied. A pending listing means all contingencies have been met and the home is moving toward closing.
So if you see a home listed as contingent, there is still a small chance it could come back on the market. If it is pending, it is very likely going to close soon.
Can You Make an Offer on a Contingent Home
Technically yes. But keep in mind the seller is already under contract with another buyer. You can submit a backup offer, which means if the current deal falls through, you will be next in line. This can be a smart move in a competitive market, especially if the home has contingencies that may not go smoothly. However, the odds of a backup offer being accepted vary by situation.
What Sellers Should Know
If you are a seller reviewing an offer with contingencies, it is important to understand what you are agreeing to. Every contingency adds some level of uncertainty. Some are standard and necessary. Others may create delays or increase the risk of the deal falling apart. Work with your real estate agent to review the offer carefully and understand your options. You may be able to negotiate shorter contingency periods or stronger earnest money deposits.
Final Thought
So what does contingent mean in real estate? It means the home is under contract but not fully sold. There are still hoops to jump through. It is a phase of the deal that requires clear communication, patience, and smart planning.
If you are unsure how to handle a contingent offer, whether you are buying or selling, I am happy to connect you with a trusted agent in your area who can walk you through it with confidence. Just reach out and I will help however I can.
