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What Does Contingent Mean In Real Estate Sales?

What Does Contingent Mean In Real Estate Sales

Question Of The Day: What Does Contingent Mean In Real Estate Sales?

In everyday use, contingent means ‘conditional’ or ‘subject to chance.’ But what does contingent mean in real estate sales? In real estate, a contingent sale is one wherein the seller has accepted an offer, but with contingencies or conditions.

These must be met before the sale goes through. The real estate term contingent means that the listing is still active. Once the seller has accepted the offer and the contingencies have been met, the status of the listing becomes ‘pending.’

Examples of contingencies in real estate sales can include passing a home inspection, verifying the buyer’s financing, or completing the sale of the buyer’s current residence.

You may notice that there are different sub-types of the contingent status.

Continue to show means that the offer has been accepted but the buyer is still working to address the contingencies. In the meantime, agents can still show the property and other interested parties can still submit offers.

No show/Without kick-out means the same as above except the property is no longer available for viewing and the seller is not accepting any more offers.

Release/Kick-out means the buyer must meet the deadline set for addressing the contingencies. Other buyers can still look at the property and the seller can look at other bids.  

Pending can also mean several things. Taking back-ups means the seller is accepting back-up offers. Release/Continue to show means there is a release clause for one of the parties. The seller can still show the home and accept other offers.

Are You A Buyer Who Wants To Bid On A Contingent Home For Sale?

  • Ask your agent to liaise with the listing agent regarding the contingency period. In cases like this, it makes a whole lot of difference when you have an expert negotiating on your behalf.
  • Make a strong offer. This can mean offering at an above-asking price or waiving contingencies like the appraisal contingency. This is a provision that lets buyers back out if the home is appraised for less than the purchase price in the contract. If you are doing this, make sure to consult with your real estate agent to ensure that this is a strategic move for you.
  • Appeal to emotions. Write a personal offer letter to the seller aka owner that emphasizes why they should accept your bid.

Real Estate Agency For Saint Cloud Real Estate And More

Looking at real estate for sale in Central Florida? Make sure you’ve got the best possible expert support you can get.

Corcoran Connect is a top real estate company known for its timely, honest, and adaptable service. Aside from St. Cloud, they serve buyers or sellers in prime communities like Harmony, Kissimmee, Lake Nona, Mount Dora, and of course, Orlando.

Jeanine and her team can help you navigate the complexities of Florida real estate, including contingent sales, both from the perspective of a seller and a buyer.

Check out their official YouTube channel for free and insightful resources or give them a call for a more personalized consultation.

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