What Does 'Contingent' Mean in Real Estate?

 

When you are on the lookout for the perfect home and now you actually see one, you might encounter the word “Contingent.” Now you’re wondering—is the home still for sale? Can I make an offer? Should I move on?

Before you move on it is important to know what “contingent” means for you as a buyer. And as for the first time home sellers, this guide could also help you in choosing the right strategy in you home selling journey.

 

What Does 'Contingent' Mean in Real Estate?

In real estate, the word “contingent” means that a seller has accepted an offer on the home—but the sale isn’t final yet.

Why not?

Because the sale depends on certain things happening first and these things are then called the contingencies. So when you see a home marked “contingent,” it simply means:

“Someone is trying to buy it, and the seller agrees to the offer, but the sale is not final until certain conditions of the seller are met!”
 

In other words, the sale is still on hold, and whatever agreement they have is not yet legally binding.

 

When Do Buyers Hear the Word 'Contingent'?

 

So, “contingent” is the word you’ll hear in the middle part of the home buying journey—right after an offer is accepted but before the closing, and this is also what is called “under contract.”

This is the stage where no one can just steal the deal and make a better offer, no! The seller just wants to see if the buyer can make arrangements for things like getting a home inspection, finalizing their mortgage loan, and/or making sure the home appraises at the right value. These are the things a seller typically needs from its buyer.

 

What Happens During the Contingent Phase?

This phase is like a waiting period. Everyone is working to make sure everything checks out before the sale is final. As mentioned earlier, the buyer commonly:

✅ Schedule a home inspection – to make sure the house is in good shape
 

✅ Work with their lender – to get full approval for their mortgage
 

✅ Order an appraisal – to make sure the home’s value matches the loan amount
 

✅ Check the property title – to make sure no one else can claim the home
 

Now what if something goes sideways and one of them is not met? This is where the seller or even the buyer cancels the deal, which is why if a property is contingent, it is not yet final if all of the conditions are met.

 

Can You Still Make an Offer on a Contingent Home?

Yes! Again, the transaction is not yet final and unrealized if one of the stipulated contingencies is missing. If your offer hastens the process, then the seller would be more likely to make a deal with you. Usually, sellers are open to “backup offers” because not all buyers who are interested in contingency property are 100% certain that the deal will go through.

However, just because you can make a deal doesn’t mean that you can easily make one with the seller because some sellers might not be interested in other offers. The seller, in some situations, might still need to see if the current offer will go smoothly, which will cause you delay.

Another important thing to note is that the seller might already have an offer he settles with. So, these are some important notes to remind you.

 

Contingent vs. Pending: What’s the Difference?

In very simple words, contingent means that the seller just accepted an offer and the conditions are currently being processed. It might also be that the contingencies have been fulfilled, but they are not yet close to closing.

On the other hand, pending will always be when the seller’s contingencies have been satisfied and the buyer and seller are now in talks for the final price before signing. Basically, a step before closing.

So remember: Contingent means the deal is still in progress. Pending means it’s almost done.

 

Why This Term Matters for Buyers and Sellers

As a buyer, you should know that a contingent home isn’t completely off the market. If you find a home you love that’s marked contingent, you might still have a chance to make an offer, especially if you’re willing to wait for a slight delay or maybe if you are willing to be given no chance at all; basically hoping for just “maybe” depending on the seller’s motivations. It also helps to understand the risks you might face during this phase, like financing or inspection issues.

For sellers, knowing that your home is in the contingent stage means the deal isn’t done yet. You still need the buyer to meet certain conditions. That means staying in touch with your real estate agent, keeping the process moving, and being ready for next steps, or for the possibility that the deal might not go through.

In short, the word “contingent” isn’t just a label on a listing saying that “these are the things I want if you want this property”.

 

To Sum It All Up

If you're a buyer, don’t skip over homes marked contingent they might still become available especially if you are really interested in it. And if you're a seller, remember that you are basically asking for what you want or no sale at all.