What does contingent mean on a house listing?

When you’re sifting through house listings and come across one marked as “contingent,” it signifies that an offer on the house has been made and accepted, but the final sale is pending until certain conditions, or contingencies, are met. These conditions are put in place to protect both the buyer and the seller, ensuring that specific criteria are satisfied before the transaction proceeds to closing.

Types of contingencies

Several common types of contingencies can cause a home to be listed as “contingent.” These include:

• Inspection contingencies: This allows the buyer to have the home inspected within a certain timeframe. If significant issues are discovered, the buyer can renegotiate or back out of the sale.
• Appraisal contingencies: Ensures the property is valued at a minimum, specified amount. If the appraisal comes in lower than the agreed price, the buyer can renegotiate or withdraw without losing their deposit.
• Financing contingencies: Gives the buyer time to secure financing. If the buyer cannot obtain a mortgage, they can cancel the contract without penalty.
• Sale of current home contingencies: For buyers who need to sell their current home before purchasing a new one, this contingency allows them to back out if they cannot sell within a specified period.