What’s the Deal with Contingent Offers? Here’s What Buyers Should Know
If you’re in the process of buying a home, you’ve probably come across listings marked as “contingent.” But what does that really mean, and how does it impact your home search? Let’s break it down so you know exactly what to expect when dealing with contingent offers.
What Is a Contingent Offer?
A contingent offer means a seller has accepted an offer on their home, but the sale isn’t final yet. It’s dependent on specific conditions (or contingencies) being met before closing. If those conditions aren’t satisfied, the deal could fall through, and the home might become available again.
Common Contingencies in a Home Sale
Contingencies are designed to protect buyers and ensure they don’t commit to a home before important details are finalized. Here are some of the most common types:
- Financing Contingency – The buyer must secure mortgage approval before proceeding with the purchase.
- Home Inspection Contingency – The buyer has the right to inspect the home and can renegotiate or back out if major issues are found.
- Appraisal Contingency – The home must appraise for at least the purchase price to satisfy the lender’s requirements.
- Home Sale Contingency – The buyer must sell their current home first before they can finalize the purchase.
Can You Still Make an Offer on a Contingent Home?
Yes! In many cases, sellers accept backup offers in case the original deal falls through. If you’re interested in a contingent home, talk to your real estate agent about submitting a backup offer, which could put you next in line if the current buyer backs out.
How to Navigate a Contingent Offer as a Buyer
If you’re making an offer that includes contingencies, keep these tips in mind:
✔ Keep your financing in order – Get pre-approved to avoid delays.
✔ Be flexible with negotiations – Sellers prefer strong, straightforward offers.
✔ Work with an experienced agent – A knowledgeable real estate professional (like the team at Embry Group Real Estate) can help you craft a competitive offer while protecting your interests.
Final Thoughts
Contingent offers are a normal part of real estate transactions, but they require careful planning. Whether you’re making a contingent offer or considering a home that already has one, working with an expert real estate team like Embry Group Real Estate can make all the difference in navigating the process successfully.
📞 Thinking about buying a home in Huntsville, Alabama? Contact us today to get started!