Joy LogoJoy text

9 minutes read

Contingent Homes Explained: Answers to Common Homebuyer Questions

Contingent Home? Learn What It Means, If You Can Still Offer, And How To Compete.

KB

Kyler Bruno

08/04/2025

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.

Contingent Homes in Real Estate

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:

1. Appraisal Contingency

The lender requires a professional appraisal to ensure the home’s value aligns with the purchase price. If the home appraises for less:

  • The buyer may need to cover the difference in cash
  • The seller might reduce the price
  • Or the buyer can walk away
Appraisal Contingency

2. Home Sale Contingency

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?

Home Sale Contingency

3. Inspection Contingency

Buyers can schedule a licensed home inspection to uncover potential issues. If problems arise (e.g., foundation cracks, plumbing leaks), buyers can:

  • Request repairs
  • Negotiate a lower price
  • Cancel the contract without penalty
Inspection Contingency

4. Mortgage (Financing) Contingency

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.

Mortgage (Financing) Contingency

5. Seller Purchase Contingency

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.

Seller Purchase Contingency

6. Title Contingency

This involves verifying that the property title is free from liens or legal disputes. If the title isn’t clear, buyers can:

  • Request the seller resolve issues
  • Walk away with no penalty

Link: American Land Title Association for understanding title insurance

Title Contingency

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.

5 Strategic Tips for Buyers Dealing With Contingent Homes

Final Thoughts: Can Contingent Homes Still Be a Win?

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: What Does Financing Contingency Mean When Buying a House?

Watch our explainer video on YouTube & Learn the basics in under 5 minutes. Or Get in Touch with us to Chat with an expert!

📢 Get More Tips & Insights from WithJoy.AI

Stay updated on: Contingent sales tips, Homebuyer rebates & Market-ready listings in Washington. Subscribe to WithJoy.AI for smart strategies delivered to your inbox.

Why More Washington Buyers Are Choosing WithJoy.AI

If you're looking to save thousands on your next home purchase, there's a smarter way to buy: WithJoy.AI.

A Discount Real Estate Agent That Works for You

WithJoy.AI is a next-gen platform offering discount real estate services in Washington without cutting corners on expertise or service quality. Our technology connects you with expert, local agents while drastically reducing your commission costs.

💸 Real Estate Commission Rebates That Put Cash in Your Pocket

Unlike traditional brokerages, WithJoy.AI offers one of Washington's best home buyer rebate programs, helping you get a significant cashback on home purchase. You can get up to 70% of your buyer agent's commission refunded that’s thousands of dollars back to you.

Smart, Streamlined Homebuying

Our AI platform helps you:

  • Discover properties faster
  • Schedule instant home tours
  • Craft smarter offers with confidence

Why Buyers Are Making the Switch?

Whether you're searching for a discount real estate agent, need a real estate commission rebate, or simply want a better way to buy, WithJoy.AI gives you everything you need without the unnecessary costs.

Save Money. Buy Smarter.

Explore homes and claim your realtor commission rebate at WithJoy.AI.

Washington’s top Discount real estate brokerage is just a click away.

Why More Washington Buyers Are Choosing WithJoy.AI
Gradient Star

Full Service Home Buying - WithJoy.AI

Find Your Home Today

The future is here. Buy your next home WithJoy.AI

Trending Neighborhoods

Best Places to Retire

Best Places to Retire

Best Affordable Areas Near Seattle

Best Affordable Areas Near Seattle

Best for Young Professionals

Best for Young Professionals

Best Family Neighborhood Seattle

Best Family Neighborhood Seattle

Best area to live in Seattle

Best area to live in Seattle