What does “contingent” mean in real estate? Sometimes you’ll hear the word “contingent” or that a home is under contract with “contingencies.” Contingent means that conditions need to be met before the contract can be fully executed.
The most common one is a financing contingency. This means a buyer needs to be able to obtain financing before they can close on a loan and purchase the house. Other typical contingencies include home inspections and appraisals, but you sometimes see other types.
In our market, if you see a home labeled “active contingent” that means there are so many contingencies in an offer that they’re still looking for other offers. So sometimes it’s still worth going to look at that house. If you ended up loving it and any of the current contingencies aren’t met, you’ll have submitted a backup offer, and you can now go under contract on the property you want.
If you have further questions about contingencies or real estate in general, please visit my website or give me a call. I would love to help you.