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What does “Contingent” Mean in Real Estate?

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What does "Contingent" Mean in Real Estate?

What does “Contingent” Mean in Real Estate?

Have you ever come across the term “contingent” while exploring the real estate market? Let Reef Realty clear up any confusion.

In real estate, a contingency is a condition or action that must be met before a sale can be completed. When a property is listed as “contingent,” an offer has been made on the property, but the deal is not yet final. The offer is contingent upon certain conditions being met, such as a home inspection or financing approval.

For buyers, it’s important to understand that a contingent offer is not a done deal. The property may return to the market if the contingency is not met. For sellers, accepting a contingent offer can be a gamble, as it means delaying the sale of the property until all the conditions are met.

A seller may prefer an offer without contingencies, while a buyer typically wants to include them for protection. Contingencies act as a safety net, ensuring that the buyer can back out of the deal without losing their earnest money if certain conditions aren’t met.

Including contingencies can be risky in a competitive market. Contingency-free offers may be more attractive to the seller, increasing the likelihood of them being accepted over yours.

At Reef Realty, we strive to provide our clients with the knowledge and expertise to make informed decisions in the real estate market. Please contact us if you have any questions about contingencies or any other real estate-related topic. We’re here to help!