Contingent Homes Explained: Answers to Common Homebuyer Questions

Understanding Contingent Homes in Real Estate

House hunting brings excitement but also a fair share of confusion. One of the terms that trips up even savvy homebuyers is: "contingent."

If you’ve come across a home listed as contingent, you might wonder:

• What does it actually mean?
• Can you still make an offer?
• Is the home already off-limits?

This guide will answer those questions and help you understand how contingent home sales work, what types of contingencies exist, and how you can still compete for your dream home.

Let’s demystify it all.

What Does It Mean If a Home is Contingent?

A "contingent" status means the seller has accepted an offer, but the sale is not yet final. The transaction hinges on specific conditions being met also known as contingencies.

Think of it as a "sale-in-progress" that's dependent on milestones like:

• Satisfactory home inspections
• Final loan approvals
• A clear title transfer
• An appraisal matching the offer price

If these requirements aren’t fulfilled within the contractual timelines, the deal may fall through. Until then, the home stays in MLS as contingent, and in some cases, open to backup offers.

Most Common Types of Contingencies in Real Estate

Understanding the kinds of contingencies in play is key to evaluating whether a contingent home might still be worth pursuing. Below are the most common home purchase contingencies:

Can You Make an Offer on a Contingent Home?

Yes, you can.

While the home is under contract, buyers are usually allowed to submit backup offers. These become active only if the current deal falls apart.

Action Tip: Talk to your real estate agent about your backup offer rights in your state. Some MLS listings don’t permit them.

Do Contingency Rules Vary by State?

Absolutely. Real estate laws, contingency periods, and contract obligations differ from state to state.

For example:

• In California, most contingencies automatically expire after 17 days unless extended.
• In Washington, inspection deadlines are strictly enforced within the Purchase and Sale Agreement.

To navigate regional rules, work with a local buyer's agent who understands the nuances of your market.

What Happens if a Contingency Falls Through?

The purchase agreement may be canceled if contingencies aren’t met. Here's what might happen:

• Low appraisal? Buyer and seller renegotiate price
• Inspection reveals damage? Buyer may walk or ask for repairs
• Financing fails? Buyer exits with earnest money returned

Deals can often be salvaged, but they require flexibility and good faith negotiations.

Can Buyers Waive Contingencies?

Yes and many do in hot markets to make their offers more attractive. But waiving contingencies also removes critical safeguards:

• Waiving an inspection means buying the home as-is
• Waiving an appraisal means you might overpay
• Waiving financing could cost you your deposit

Important: In some states, certain contingencies (like attorney review or title clearance) cannot legally be waived.

5 Strategic Tips for Buyers Dealing With Contingent Homes

Contingent sales aren’t the end of the road. Here's how to play your cards right:

1. Understand the Contingency Type

Ask your agent what kind of contingency is in place and how likely it is to fall through.

2. Submit a Strong Backup Offer

If you're serious, put in a clean backup offer with flexible terms and minimal contingencies.

3. Make Your Offer Stand Out

Higher earnest money, fewer contingencies, or flexible timelines can make your offer hard to ignore.

4. Keep Exploring Other Options

Contingent homes aren’t guaranteed. Stay open to new listings while waiting.

5. Use a Smart, AI-Powered Home Search Tool

With tools like WithJoy.AI, buyers can access:

• Tailored home matches
• Fast tour bookings
• Smart offer crafting tools
• Deep market insights

And best of all up to 70% buyer commission rebates.