If you’re searching for a home online, you may come across properties that are marked as “active contingent.” But what does this mean? Is the real estate still available, or has it been snapped up already? “Active contingent” simply means that there is an offer on the property but it’s not yet finalized. So if you make a strong enough offer, the home could still be yours!
Are you wondering what a ‘contingent’ label on a real estate listing means? Read on for an explanation as well as how to make an offer that will please both the buyer and seller.
What does active contingent mean?
Active contingent status on a home indicates that the buyer has submitted an offer to the seller with outstanding conditions that must be figuratively tied up before the completion of the sale. The most frequent issues that label a home “contingent” are: if the house passes an inspection, the buyer gets approved for a mortgage, and whether or not the buyer can sell their old home.
A real estate sale is contingent on a number of factors, such as the buyers getting approved for a mortgage or selling their property, or the seller’s home passing inspection. Once these contingencies are resolved, the status of the real estate will change from “contingent” to “pending.”
What’s the difference between active contingent and sale pending?
The main distinction between a contingent and pending listing status in the MLS is whether there is a contingency included in the sale. A contingency occurs when something happens that could potentially stop or delay the sale, such as if a home inspection finds mold or if a buyer can’t get approved for their mortgage. However, if a house is marked as “pending,” this means that there are no contingencies present or that all contingencies have been met, and therefore the sale is now pending.
A “short sale contingent” home is one where the buyers are working to get approval for a mortgage, and sellers are seeking more offers. Oftentimes, your real estate agent can review the MLS and help you decide whether or not putting in an offer on such a property is the right move.
Putting in an offer on an active contingent listing
Although a contingent listing is still likely to sell, don’t get your hopes up too high. This means that you can test the market by making an offer on the property.
If you’re a buyer, Annas Chaudhary, a real estate agent in BC, recommends submitting an offer to the seller unless the seller’s agents say they won’t show the property anymore. “Knowing they have an attractive backup offer might make a seller more willing to let that first deal fail if something comes up during the contingency period,” says Chaudhary.
“Contingent” just means that the seller is still considering other offers. If you really want the property, then make your backup offer as strong as possible. propose a fair price, waive contingencies, agree to buy it “as is,” and show that you have a good lender lined up. This will demonstrate to the seller that you are committed and serious about buying their property.
