9 minutes read
Contingent Home? Learn What It Means, If You Can Still Offer, And How To Compete.
KB
08/04/2025
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:
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.
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:
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.
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:
The lender requires a professional appraisal to ensure the home’s value aligns with the purchase price. If the home appraises for less:
This clause states that the buyer must first sell their current home before completing the new purchase. While it offers buyers flexibility, it can deter sellers due to timing uncertainties.
Useful resource: Zillow: What is a Home Sale Contingency?
Buyers can schedule a licensed home inspection to uncover potential issues. If problems arise (e.g., foundation cracks, plumbing leaks), buyers can:
Most homebuyers rely on mortgage loans. If financing falls through due to poor credit or income changes this contingency allows buyers to back out while keeping their earnest money deposit.
Pro Tip: Strong pre-approval letters help prevent deals from collapsing due to financing.
Here, the seller needs to secure a new home before finalizing the sale. If they don’t find a replacement in time (typically within 30-60 days), they can cancel the deal.
This involves verifying that the property title is free from liens or legal disputes. If the title isn’t clear, buyers can:
Link: American Land Title Association for understanding title insurance
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.
Absolutely. Real estate laws, contingency periods, and contract obligations differ from state to state.
For example:
To navigate regional rules, work with a local buyer's agent who understands the nuances of your market.
The purchase agreement may be canceled if contingencies aren’t met. Here's what might happen:
Deals can often be salvaged, but they require flexibility and good faith negotiations.
Yes and many do in hot markets to make their offers more attractive. But waiving contingencies also removes critical safeguards:
Important: In some states, certain contingencies (like attorney review or title clearance) cannot legally be waived.
Contingent sales aren’t the end of the road. Here's how to play your cards right:
Ask your agent what kind of contingency is in place and how likely it is to fall through.
If you're serious, put in a clean backup offer with flexible terms and minimal contingencies.
Higher earnest money, fewer contingencies, or flexible timelines can make your offer hard to ignore.
Contingent homes aren’t guaranteed. Stay open to new listings while waiting.
With tools like WithJoy.AI, buyers can access:
And best of all up to 70% buyer commission rebates.
Yes, as long as you know what you're doing.
By understanding how contingencies work, asking the right questions, and partnering with the right platform or agent, you can make a smart move.
Stay prepared, stay patient, and always have a strategy in hand.
Watch our explainer video on YouTube & Learn the basics in under 5 minutes. Or Get in Touch with us to Chat with an expert!
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