What is what does it mean if a house is contingent?

A "contingent" status on a house listing indicates that the seller has accepted an offer from a buyer, but the sale is still subject to certain conditions or contingencies that must be met before the transaction can be finalized. In other words, it's not a done deal yet.

Here's a breakdown of what this generally means:

• Offer Accepted, but Not Final: The seller and buyer have agreed on the price and terms, but specific requirements need to be fulfilled.

• <a href="https://www.wikiwhat.page/kavramlar/Common%20Contingencies">Common Contingencies</a>: The most frequent contingencies include:

  • <a href="https://www.wikiwhat.page/kavramlar/Home%20Inspection">Home Inspection</a>: The buyer has the right to inspect the property and potentially renegotiate or walk away if significant issues are found.
  • <a href="https://www.wikiwhat.page/kavramlar/Mortgage%20Approval">Mortgage Approval</a>: The buyer needs to secure financing (a mortgage) to purchase the home. If they are unable to get approved, they can typically back out of the deal.
  • <a href="https://www.wikiwhat.page/kavramlar/Appraisal">Appraisal</a>: The property must appraise for at least the agreed-upon purchase price. If the appraisal comes in low, it can affect the buyer's financing and lead to renegotiations.
  • Sale of Buyer's Current Home: (less common now) The buyer needs to sell their existing home before they can complete the purchase of the new property. This makes the transaction dependent on the successful sale of another property.

• Still Possible to Make an Offer (Sometimes): While an offer is accepted, some sellers will continue to show the property and accept backup offers. If the first buyer cannot fulfill the contingencies, the seller can then move on to the backup offer. This depends on the specific terms of the <a href="https://www.wikiwhat.page/kavramlar/Purchase%20Agreement">Purchase Agreement</a>.

• Varying Timeframes: The length of time a property remains contingent can vary depending on the specific contingencies involved and the local real estate market.

• Not a Guarantee: Contingent means the sale is possible, but far from a sure thing. Many contingent deals fall through.