If you’ve ever looked at homes for sale online, in addition to details about the home or open house information, you may see that the home is “contingent.” If you’ve ever wondered, “What does contingent mean?” read on for everything to know about homes listed as “contingent.”
What Does Contingent Mean for Home Buyers?
If you see a home listed for sale online, in the local paper, or via a marketing mailer, and it says “contingent,” it means the home is under contract. A buyer has made an offer on the home, and the seller has accepted the offer. However, that does not always mean that the transaction will go through. This is because the transaction is contingent on certain conditions or criteria being met. These criteria are known as contingencies.
Examples of common contingencies include a home inspection contingency. This means that the sale will proceed if a home inspection doesn’t reveal any problems in the home that the buyer didn’t know about at the time the offer was made. A financing contingency is also common and allows buyers time to work with a mortgage advisor to get their home loan in place to purchase the property. Appraisal contingencies are also common and allow buyers to back out of the agreement. These happen if the appraisal of the home is significantly lower than they thought when they made the offer.
Another type of contingency is dependent on a buyer selling their current home. This may be needed if the buyer hasn’t received and accepted an offer for the home, they live in. Sellers generally have the option to continue to market the home and consider other offers, but must give the buyer the chance to remove the contingency and proceed with the sale within a set period (24-72 hours). Homebuyers who ask for this type of contingency may have to pay more for the home.
What Does Contingent Mean for Home Sellers?
Sellers should exercise due diligence in agreeing to contingencies. Once you accept an offer on a home, even with contingencies, it may make your home less attractive to other buyers, as it will appear as “contingent” in real estate listings. Buyer’s agents aren’t as likely to promote your home to their buyers if you have already accepted an offer. If the sale falls through because the buyer was not able to secure financing, you will have to begin marketing the home for sale again, which can delay the sale.
Home Financing Loans to Meet Your Needs in Oregon
Strategic Mortgage Solutions will work with you to secure the best home loan for your needs and clarify any questions you have, like “What does contingent mean?” or “What is escrow?”
Whether you’re a veteran, first-time homebuyer, self-employed borrower, or anything in between, we can work with you to secure your financing so that you can close on your new home, on time. Our experienced Oregon mortgage brokers are available to answer your questions or begin getting you prequalified for a mortgage today. Call 541-275-1148, or send us a message. There is no charge for our services until we secure your financing for you.