You’ve found it – your dream house. You scroll through the photos and house specs oohing and ahhing. But then you come across the status of the home. It’s listed as “active contingent”. What does this mean?
What this essentially means is that the buyer has put in an offer on the home with contingencies. These include issues that they would want resolved before they move in. It could also mean that the seller is waiting for the buyer to be approved for a mortgage.
Once these issues have been resolved, the sale can move forward and the listing will be changed to pending.
- Home inspection
- Mortgage approval
- Appraisal contingencies
- Title contingencies
- Repair issues
Active contingent vs. sale pending
If a house is listed as pending that means there is no contingency to be met, or that they have already been met.
In some cases, a home will be listed as “short sale contingent”, which means that a buyer may be awaiting approval on a loan, but the sellers are still open to more offers.
So, does that mean you can or cannot put an offer in on an active contingent home?
Putting in an offer on an active contingent home
The chances are a contingent listing is likely to sell, but that doesn’t mean you still can’t give it a shot.
Sometimes a second offer may be appealing enough to a seller that they will let the first offer fall off. That is, if your offer beats out the first offer.
When making an offer on a contingent home, submit a lucrative but fair price with no contingencies.
If you are interested in placing an offer on a contingent home, you better think fast. These statuses change very quickly, and if this home is the one, you don’t want a missed opportunity weighing heavy on your mind.