What Does Active Contingent Mean In Real Estate? (Question)

Active contingent is one of the many status updates given to a property listing. If a property has an active contingent status, it means the seller has accepted an offer from a buyer. However, the home sale isn’t finalized yet because certain contingencies need to be met.

What does active with contingency mean?

  • Active with contingency means that an offer on the house has been made, and the seller has accepted it; however, before the sale can be finalized, some criteria needs to be met. The homeowner/seller must resolve the issues or problems. While contingencies benefit both the buyer and the seller, they benefit the buyer the most.

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Can you make an offer on a house that is active contingent?

In most cases, putting an offer in on a contingent home is an option to consider. Although it doesn’t guarantee you’ll close on the home, it does mean you could be first in line should the current contract fall through. Putting an offer in on a contingent home is similar to the homebuying process of any active listing.

What’s the difference between contingent and active contingent?

When you are looking at online home listings, “active” status indicates that the property is available for sale. But with a contingent listing, the contract is contingent upon the buyer’s ability to sell his existing home, i.e., if the buyer doesn’t sell his home, he is able to back out of the contract.

What is the difference between active contingent and pending?

A property listed as contingent means the seller has accepted an offer, but they’ve chosen to keep the listing active in case certain contingencies aren’t met by the prospective buyer. If a property is pending, the provisions on a contingent property were successfully met and the sale is being processed. 4

Can you still view a house that is contingent?

Contingent, Continue to Show: The seller has accepted an offer that hinges on one or several contingencies. Other buyers can continue to view the property and submit offers while the buyer is working to settle those contingencies.

How do you bump a contingent offer?

The bump clause allows the seller to accept another offer, so long as the seller notifies the original buyers and sees if they will waive their contingency. If not, the buyer accepts the new offer and the first buyer receives the payment they put down.

How do you beat a contingent offer?

Here are just a few that can help you beat out the competition:

  1. Get approved for your mortgage.
  2. Waive contingencies.
  3. Increase your earnest money deposit.
  4. Offer above asking price.
  5. Include an appraisal gap guarantee.
  6. Get personal.
  7. Consider a cash offer alternative.

Can a seller back out of a contingent offer?

To put it simply, a seller can back out at any point if contingencies outlined in the home purchase agreement are not met. A low appraisal can be detrimental to a sale on the seller’s end, and if they’re unwilling to lower the sale price to match the appraisal value, this can cause the seller to cancel the deal.

What does active contingent C mean?

If a home’s status is “active contingent,” it means that the buyer has submitted an offer to the seller with contingencies, or issues that must be resolved before the sale of the property can be finalized.

Why would a house go from pending to active?

1 The pending sale will go back to active if the loan is rejected due to a buyer’s impulse financing. It’s also possible that buyers might not have knowledge of liens or judgments filed against them. This can also affect their creditworthiness so the loan the buyer thought he had in place can ultimately be denied.

Can you put an offer on a house that already has an accepted offer?

Absolutely. We have seen cases where the seller has accepted another offer after the buyer has signed the contract and sent the deposit. A seller can do that before they sign. Either party can do whatever they want until there is a fully executed contract.

Can you outbid a pending offer?

Do not try to outbid the current pending sale; as stated above, this is a no-win situation. Simply bid what you would have bid on the property anyway considering the home value, the location, and the botional tie that you may have to the house.

Does contingent mean sold?

What does contingent mean when a house is for sale? When a property is marked as contingent, it means that the buyer has made an offer and the seller has accepted that offer, but the deal is conditional upon one or more things happening, and the closing won’t take place until those things happen.

Why would a house be contingent?

Contingencies are often used to protect the buyer from problematic home listings or unforeseen issues within the real estate transaction.

What is a contingent home on Zillow?

If you see the word “contingent” on your listing, it means that your buyer is working through any contingencies that were a part of their offer — like a financing contingency, home inspection contingency, or buyer home sale contingency.

What Does “Active Contingent” Mean In Real Estate?

“What does active contingent mean?” is a question that consumers frequently ask real estate brokers. This indicates that the seller of the property has received an offer from a prospective buyer. Prior to the transaction being finalized, however, there are a number of prerequisites that must be satisfied. A purchase contract may include contingencies, such as a buyer’s contingency for a property inspection and a seller’s contingency for discussing any necessary repairs with the seller prior to the transaction being finalized.

The buyer must be authorized for a mortgage loan within a certain time period after the contract is signed, which is another typical contingency in real estate transactions.

The majority of the time, the contingencies contained within a contract may be sorted out without any complications.

However, the length of the active contingent time might vary, although it is typically one to three weeks in duration.

  • There is always the potential of something like this happening.
  • This indicates that the close is not far off.
  • As a buyer considering a house with a “active contingent” status, you should continue to check back frequently to see whether the status has changed.
  • Please refer to this page for information about contingent and emergency situations.
  • What exactly does the phrase “active contingent” or “contingent” mean
  • Don’t buy a house until you have these three contract contingencies in place.

What Does ‘Active Contingent’ Mean? A Home Sale With Conditions

Consider the following scenario: you’ve located your dream house on the multiple listing service, but the property’s status is listed as “active contingent.” What exactly does “contingent” entail, and is the property still available for purchase? Does the combination of the words “active” and “contingent” imply that the property may still be yours if you make the appropriate offer to the seller? Continue reading for an explanation of this real estate listing status, as well as some tips on how to make an offer that will satisfy both the seller and the buyer when a property is branded contingent.

What does ‘active contingent’ mean?

If a home’s status is shown as “active contingent,” it signifies that the buyer has submitted an offer to the seller that includes contingencies, which are difficulties that must be overcome before the sale of the property can be completed successfully. There are a variety of reasons why a property may be designated as contingent, including a home passing an inspection, the buyer receiving mortgage approval and the buyer being able to sell his or her existing home.

Once the contingency has been handled, whether it is the buyers receiving mortgage approval, selling their property, or the seller’s home passing inspection, the real estate transaction may proceed. This will result in the property’s status being changed from “contingent” to “pending.”

What’s the difference between active contingent and sale pending?

The inclusion of a contingency in the sale is the most significant distinction between contingent and pending listing statuses in the Multiple Listing Service (MLS). Several conditions, such as a house inspection or a buyer’s financing approval, must be addressed before the sale may be completed. A house that is labeled as “pending” signifies that there is no condition in place or that all contingencies have been satisfied, and that a sale is now in the works. Some residences may also be marketed as “short sale contingent,” in which case the purchasers may be attempting to obtain mortgage approval while the sellers are looking for further bids on the property.

Often, your real estate agent can analyze the Multiple Listing Service (MLS) and assist you in making the best decision.

Putting in an offer on an active contingent listing

Remember not to get your expectations up too much, because a contingent listing is more than likely to sell if everything goes according to plan. It does not rule out the possibility of putting in a bid on the property to see how it will turn out, though. A real estate agent with Center Coast Realty in Chicago, Brendan O’Donnell, recommends purchasers to make an offer to the seller until the seller’s real estate agents specifically announce that they are no longer showing the property. ‘If a seller is aware that they have a compelling backup offer, they may be more likely to let the first agreement go by the wayside if anything unexpected occurs during the contingency period—and instead choose the second buyer,’ adds O’Donnell.

“Putting in a reasonable price, waiving stipulations, agreeing to purchase the property as-is, and demonstrating that you have a good, local lender go a long way toward demonstrating that you are dedicated and a qualified buyer,” he adds.

What Does ‘Active Contingent’ Mean? A Home Sale With Conditions

Consider the following scenario: you’ve located your dream house on the multiple listing service, but the property’s status is listed as “active contingent.” What exactly does “contingent” entail, and is the property still available for purchase? Does the combination of the words “active” and “contingent” imply that the property may still be yours if you make the appropriate offer to the seller? Continue reading for an explanation of this real estate listing status, as well as some tips on how to make an offer that will satisfy both the seller and the buyer when a property is branded contingent.

What does ‘active contingent’ mean?

If a home’s status is shown as “active contingent,” it signifies that the buyer has submitted an offer to the seller that includes contingencies, which are difficulties that must be overcome before the sale of the property can be completed successfully. There are a variety of reasons why a property may be designated as contingent, including a home passing an inspection, the buyer receiving mortgage approval and the buyer being able to sell his or her existing home.

Once the contingency has been handled, whether it is the buyers receiving mortgage approval, selling their property, or the seller’s home passing inspection, the real estate transaction may proceed. This will result in the property’s status being changed from “contingent” to “pending.”

What’s the difference between active contingent and sale pending?

The inclusion of a contingency in the sale is the most significant distinction between contingent and pending listing statuses in the Multiple Listing Service (MLS). Several conditions, such as a house inspection or a buyer’s financing approval, must be addressed before the sale may be completed. A house that is labeled as “pending” signifies that there is no condition in place or that all contingencies have been satisfied, and that a sale is now in the works. Some residences may also be marketed as “short sale contingent,” in which case the purchasers may be attempting to obtain mortgage approval while the sellers are looking for further bids on the property.

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Often, your real estate agent can analyze the Multiple Listing Service (MLS) and assist you in making the best decision.

Putting in an offer on an active contingent listing

Remember not to get your expectations up too much, because a contingent listing is more than likely to sell if everything goes according to plan. It does not rule out the possibility of putting in a bid on the property to see how it will turn out, though. A real estate agent with Center Coast Realty in Chicago, Brendan O’Donnell, recommends purchasers to make an offer to the seller until the seller’s real estate agents specifically announce that they are no longer showing the property. ‘If a seller is aware that they have a compelling backup offer, they may be more likely to let the first agreement go by the wayside if anything unexpected occurs during the contingency period—and instead choose the second buyer,’ adds O’Donnell.

“Putting in a reasonable price, waiving stipulations, agreeing to purchase the property as-is, and demonstrating that you have a good, local lender go a long way toward demonstrating that you are dedicated and a qualified buyer,” he adds.

It was initially published on Real Estate NewsInsights |

What Does Active with Contingency Mean in Real Estate?

Purchasing a house is an exciting and rewarding experience, but it can also be stressful. The hunt for your dream home takes a significant amount of time, effort, and study. It also includes some real estate jargon that you might not have come across previously. One of the words is active with the possibility of change. When a house you’ve fallen in love with is labeled as contingent, what does “active with contingency” actually mean? The vast majority of real estate deals include conditions, sometimes known as clauses, to protect the buyer.

What does active with contingency mean in real estate?

First and foremost, the term contingent refers to a residence that is currently on the market and available for purchase. A prospective buyer has already inspected the property and has shown an interest in purchasing it. The term “active with contingency” refers to a situation in which an offer has been made on a residence, and the seller has accepted it; but, before the sale can be completed, certain conditions must be satisfied. The homeowner/seller is responsible for resolving any difficulties or problems.

Why? Because they provide the buyer with the ability to terminate the contract without incurring any penalties. The buyer may also be entitled to a refund of their earnest money. A house buyer can save a significant amount of money, time, and worry by doing so.

Types of Contingencies

The contingencies are stipulations in the sales contract that deal with topics such as appraisals, house inspections, and mortgage approvals, among other things. These clauses are often followed by a deadline or period that specifies when the criteria must be satisfied. Some contingencies may be different from one state to the next.

  • Contingency for a home inspection—When the contingency for a home inspection is present, the house must pass inspection in order for the transaction to proceed. The roof, plumbing, electrical system, or the construction of the building are all examples of parts of the house that should be inspected for potential problems.
  • Contingency on mortgage approval— A mortgage approval contingency protects both the buyer and the seller in the event that the seller fails to get financing. Also specified is the date by which an official mortgage approval must be obtained, which is typically seven days before the closing date.
  • Appraisal contingency—This condition allows buyers to cancel their purchase agreement if the home’s appraised value is less than the purchase price. The evaluation is often performed by a third-party assessor, who guarantees that the investment is financially sound.
  • Contractual home sale contingency—The deal is contingent on the successful sale of the buyer’s present residence within a specified time period. If the buyer’s house does not sell by the scheduled closing date, the seller has the option to either extend the contract or terminate it entirely. Due to the fact that there is no certainty that the house will sell, home sale conditions can be dangerous for sellers.

Active with Contingency vs. Pending

When an offer is accepted by the seller and all conditions have been met, a property is upgraded from contingent to pending status on the MLS. Real estate listings that are current with contingencies are still live listings on real estate websites, which means that other buyers can still make an offer. Once all of the conditions have been eliminated and the active contingent stage has been completed, the property will be marked as pending on the listing database. Since they are not current listings, no one else can make an offer on the house while the deal is still pending.

Can you make an offer on a house that is active with contingency?

Short answer: You can submit an offer at any point during the home-buying process. However, it is not quite that straightforward. Owners who have a contingent offer on their house might accept a backup offer if they like. In the event that the first agreement falls through, your offer will take precedence. The duration of the active contingent period varies, although it is usually a few weeks at the most. It is possible that it will take longer. When a residence is listed as active with contingent status, it indicates that the closure is not far away from taking place.

But it is not impossible for the property to be re-listed on the market in the future.

How often do contingent offers fall through?

Keeping track of how frequently contingent offers fail is a smart idea since it allows you to better assess your risk level. An NAR poll found that in May 2020, 76 percent of recently concluded transactions had purchase conditions, and 9 percent of contracts were cancelled due to these contingencies. So, what was the reason for the large number of contract terminations? A fraction of the terminations can be attributed to the epidemic. Many prospective homebuyers have lost their employment, making it hard for them to acquire a home at the present time.

Prior to the pandemic, just 2 percent to 5 percent of contracts were cancelled within a month’s time frame.

What if you fall in love with a contingent home?

In the event that you fall in love with a home that is currently under contract with a contingency, the best suggestion is to keep checking back to see whether the property’s status has changed. If you see that the contingency status has been removed and that the house is not currently under contract, you’re in luck.

You have the opportunity to make an offer right now. If you fall in love with a house that is either active with a contingency or pending, it’s critical that you contact a Realtor as soon as possible to discuss your alternatives and explore your possibilities.

Get Advice on Active With Contingency and More

The importance of knowing the nature of contingencies cannot be overstated, whether you are a house buyer or seller. Having a skilled real estate agent on your side might be beneficial. You don’t know where to look for one? There’s no need to look any further! When it comes to selling your house, only trained and accredited real estate experts are the finest in the business. No matter whether you’re buying or selling a house, UpNest puts you in control of the process. There will be no more phoning around.

  1. We scrutinize hundreds of real estate agents and only bring you the most successful ones.
  2. Examine commission rates, buyer commission refunds, and cost-savings opportunities.
  3. Yes!
  4. During this time, other purchasers are welcome to continue to see the ad and make bids on it.
  5. No.

Contingent vs. Pending: What’s the Difference?

Each of the dependent status subcategories has a somewhat distinct connotation, and there are numerous of them.

Contingent – Continue To Show (CCS)

Contingent – Continue to Show, or CCS, is a designation used to indicate that a listing has various contingencies that must be met before it may be sold. In this particular instance, the seller and their agent have opted to continue showing the property and accepting bids from other prospective purchasers.

Contingent – No Show

If you are dealing with a Contingent – No Display scenario, the seller has opted not to show the property or accept any additional bids at this time. This might be due to the fact that, despite the fact that there are conditions, the seller believes that they will be met.

Contingent – With Or Without A Kick-Out Clause

An expiration date for the buyer’s obligation to meet all contingencies is indicated by a kick-out clause in the contingent status agreement. There is no specific timeframe in effect since there is no kick-out clause.

Short Sale Contingent

A short sale occurs when the seller (often a bank or other mortgage lender) has signaled that they are willing to take less money than the amount outstanding on the mortgage loan. The short sale procedure might take many months to complete in some cases. A Short Sale is a sale that is completed quickly. The house is no longer on the market as a result of an accepted offer, but the short sale is still in the process, as indicated by the contingent status.

Contingent Probate

When a homeowner dies, an estate sale is held in order to settle the estate. This is known as Contingent Probate.

What does active contingent mean when a house is for sale?

Liz Gallagher contributed to this article. When you look at real estate listings, you’ll most likely discover that the terminology is strange. We understand that decoding listings and figuring out what all of this new jargon means might be difficult, which is why we’re here to assist. “Active contingent” is a status that you could notice on a real estate listing for a house. The short version of the tale is that the seller of the house has received an offer from a buyer, but the offer is not certain to be accepted.

What you should know about a house that is labeled as active contingent

  • A conditional offer has been accepted by the seller. It is possible that the anticipated buyer will not purchase the residence. You can make an offer on a contingent property that is currently under contract, but the present buyer has first dibs

What is active contingent?

A contingency is a condition that must be satisfied during a particular period of time in order for something to happen. Once the condition is completed, the contingency is removed and the deal is finalized, and the sale proceeds. “Active contingent” refers to an offer that has been accepted by the seller but which has one or more conditions. The buyer now gets a set amount of time to complete the transaction without incurring any further costs. As soon as the contingencies are satisfied, the house will be moved to the pending status, and the buyer and seller will be able to begin the closing process.

For the seller, this means starting again from the beginning in order to find a buyer for their property.

We are now faced with another question: what exactly is earnest money?

If there is no contingency in place, the seller retains the money if the buyer cancels the transaction.

Common contingencies

Homebuyers have the option of including one or more stipulations with their offer to purchase a house. People frequently opt to add a contingency in their house purchase agreement to account for anything they are reliant on in order to be able to purchase a new home, such as the sale of their present home or the approval of their mortgage loan. The following are four sorts of contingencies that are commonly encountered.

  • Sale contingent upon completion of the transaction. If a buyer has a sale contingency, it provides them a specific period of time to sell their present house before purchasing a new one. It is frequently employed when a buyer need the revenues of a sale in order to fund a new acquisition.
  • Contingency for financing. A financial contingency, sometimes known as a “mortgage contingency” or a “loan contingency,” gives the buyer additional time to arrange a mortgage loan, generally from a certain lender and occasionally even at a specific interest rate.
  • There is a contingency for appraisal. It is necessary to have an appraisal contingency in place until a professional appraiser has reviewed and determined the worth of the home in order to ensure that the appraised value is not less than the purchase price. In the case of a low assessment, it might be a major problem for the buyer because mortgage lenders would not loan more than the appraised value.
  • Inspection as a backup plan This is referred to as a “due diligence” contingency in some circles. It provides time for a house inspection, which will provide the buyer with a better understanding of the condition of the property.
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Buyers benefit from contingencies because they give a safety net. Sellers, on the other hand, often do not want to be forced to wait out the contingency. Because a condition precludes the seller from knowing with confidence whether or not their house sale will close, sellers are often reluctant to accept contingent bids on their property. Consider consulting with your agent for smart strategies to securely avoid contingencies, which will increase your chances of having your offer accepted by the seller in a competitive market.

Know the local scenario

It’s critical to discuss with your agent the implications of a home’s current condition on your ability to make an offer.

While the specifics of what each category signifies for you as a buyer differ from state to state, the following are the typical statuses that you may encounter on listings:

  • Active– The home is for sale, advertised on the Multiple Listing Service (MLS)
  • Contingent– The seller has accepted a conditional offer and the contingency or contingencies have not yet been eliminated
  • Pending– The house sale is progressing toward finalization
  • Sold– The transaction is legally concluded and registered by the county

In certain cases, contingent status may have a different connotation depending on where the house you’re purchasing is situated, even though the status is the same everywhere. Every multiple listing service (MLS) has its own set of definitions. The only contingency that can be used to designate a house contingent in Washington, for example, is a sale contingent. The status of homes with other contingencies is displayed as pending. According to Andy Randles, a Seattle-based real estate agent, “If a house is in contingent status, the sale of the home is contingent on the buyer receiving the cash from the sale of their previous home.” Continuing, he says, “The buyer’s offer includes a certain length of time for them to advertise their home and sell it.” “If those prerequisites are not reached, the house will become operational once more.” While this is going on, any other buyer is welcome to come in and make an offer.

The initial buyer retains first place in line, but a new buyer has the opportunity to pass them up in line.

According to what we’ve discussed above, an active contingent is employed in that situation: the seller has accepted an offer subject to any one of a number of conditions.

Can you make an offer on a contingent home?

Talk with your agent about whether or not it makes sense to make an offer on a contingent property if you fall in love with it. The answer to this question might also differ depending on where you are. In most cases, because the transaction hasn’t been completed, the seller may be receptive to evaluating your offer. Even if the seller is unable to legally accept your offer while the house is in the contingent status, there is a possibility that the home may become available and return to active status.

When you encounter a house that is labeled as dependent, it is possible that there are extra criteria.

In contrast, “With No Kick-Out” indicates that even if the seller wants to accept your offer, they will not be able to do so while the house is subject to a contingent sale.

The contingency stipulates that a new buyer may replace the contingent buyer if the new buyer outbids the existing bidder (with five days for the first buyer to meet their conditions or waive their contingency before being bumped.)

Contingent vs. pending

“Contingent” and “pending” are two different types of statuses in this context. In the event that a contingency is in place, the residence is considered to be in contingent status. When a residence is in the process of being sold, it is considered to be in the pending state. The likelihood of a pending property being restored to active status is quite low. There may also be certain informative qualifiers associated with the pending status. If you’re interested in a pending house, the phrase “pending – taking backup bids” is one to keep an eye out for.

When is a home officially sold?

Once the closing process is completed, the residence is considered formally sold. The very final step occurs when the escrow business files the ownership documents with the appropriate government agency. When the buyer receives their new keys, the “sold” moment is frequently felt to be a reality for them.

FAQ about contingent status

a little about the author: Currently, Liz Gallagher is the Editorial Director of Flyhomes, where she publishes articles to provide individuals with the education and insights they need to make informed decisions whether buying, selling, or owning a house. Elina Fairytale created the cover photo, which can be seen onPexels.com.

How Well Do You Know Your MLS Status Definitions?

Because of the intense competition in the market, you don’t want to waste your time showing residences that aren’t currently available. When your listings are under contract but are awaiting finance clearance, you don’t want to lose out on any back-up bids that come your way. Using the right status codes in the Multiple Listing Service (MLS) might make you appear to be a real estate rock star. You may learn more about the differences between a Contingent offer and an Out, as well as when to modify the status of your offer to Pending, by continuing reading.

  1. Definitions of the MLS Status Act Active: The property is up for sale and must be available for showings at the time of the act.
  2. CON Contingent Offer Accepted: The seller has accepted an offer but has requested that the property be made available for showings and that the seller be open to receiving backup offers.
  3. OPT Active Option Contract: The Seller has accepted an offer, but the Buyer is exercising the option term that was included in the sales agreement.
  4. Will expire on the date that the agent originally set as the expiration date.
  5. (See TAR Form 1908 for further information.) Showings and backup offers are still possible on this property.
  6. PND Pending: An offer has been made on the property (Contract with no contingencies, Kick Outs or Options).
  7. Pending postings do not have an expiration date and will remain open until they are closed.
  8. Due to the terms of the “Termination Form,” the property cannot be re-listed with another broker due to the restrictions of the document.
  9. CAN It has been decided that the property will no longer be available for showings, in accordance with the terms agreed upon between the Seller and the Listing Broker in the “Termination of Listing Form” (TAR Form 1410).
  10. The seller is able to re-list their property with a different broker if they so choose to.
  11. A property that is temporarily off the market for a variety of reasons (such as renovation or an owner’s illness) is referred to as a Temporary Off Market status.

This is not to be confused with the Cancelled or Withdrawn statuses. Will expire on the date that the agent originally set as the expiration date. EXP: The listing has expired; SLD: The listing has been sold;

Active Contingent Listings

You have arrived to the following page: Definition and Example of Active Contingent Listings in the Real Estate Industry When it comes to selling a house, active contingent listings are sometimes disregarded. Are these, nevertheless, worthwhile endeavors? Is it really possible to negotiate a decent bargain for your clients? Continue reading to find out. Disclaimer: Advertisements and participation in affiliate programs help to keep REthority running. When you click on one of our links, we may receive a commission.

Jump to:
  • What Is Active Contingent
  • When Does It Apply
  • What Does It Mean
  • The difference between active contingent listings and pending listings
  • What Happens If the Contingencies Aren’t Met? Statuses of listings
  • If You Make an Offer on an Active Contingent, Is It Worth Your Time to Look into it?

In your hunt for a property, you’ve certainly come across a variety of various listing statuses, such as Active, Contingent, Pending, and Sold, to name a few examples. The different listing statuses are important to understand when you locate a property that interests you, and you decide to put in an offer on it. One status that might be particularly perplexing is the “Active Contingent” status, which stands for “Active Contingent.” Is it still possible to schedule a showing? Is it still acceptable to make a counter-offer?

Take a look at each element of the word to have a better understanding of what it means for you, the future home buyer, to completely grasp what Active Contingent implies in real estate.

What Is Active Contingent?

An Activelisting indicates that the listing is still theoretically available for purchase. As of this writing, no buyer has progressed any farther in the process beyond the possibility of placing a first offer, and no offers have been accepted as of yet. If you notice a listing that is still current, you can still put an offer on it. Finding a listing that you like that is currently active is exactly what you want in your house search. When you look at a current listing, you’ll see the following:

  • The seller may have received an offer or many offers, but has not yet accepted any of them. To book a showing and submit an offer on the property, you are entirely at your discretion.

In the case of contingentlistings, which are also known as current contingent listings, they are those that have certain contingencies or conditions attached with them. They are still live listings, however they are not the same as active listings in the sense that the seller has done the following:

  • Received and accepted a purchase offer from a potential purchaser
  • Is now only awaiting the fulfillment of any contingencies – the conditions necessary for the transaction to close – before changing the listing status to Pending or Under Agreement, and then being formally Sold

When the Active Contingent Status Applies

Which properties are classified as having an active dependent status? What is the best way to determine when this listing status is applicable, and what it implies for you as a buyer? Only houses and properties with an active contingent status are those in which the seller has received and accepted an offer that is contingent on the fulfillment of one or more conditions or contingencies. These must be satisfied before they will agree to sell the house, and they must also be met before the buyer will accept the buyer’s offer.

  • For a transaction to proceed, the buyer must first be able to sell their own residence. Purchasers must be able to obtain mortgage approval before they can proceed with the transaction
  • To proceed, the home must pass the buyer’s home inspection(s) and the seller must agree to make any necessary repairs before the buyer will proceed. There must be an appraisal of the property for an amount that the buyer’s lender is comfortable with and would finance

Following the fulfillment of the contingency conditions by a buyer (or seller), the property will be upgraded to the status of “Pending” from “Active Contingency Listing.” Let’s take a look at how the pending status differs from that of an active contingent status.

Active Contingent vs. Pending Listings

Pending, or Under Agreement (listed as UAG on the MLS), listings are distinct from current contingent listings in that this status implies that a buyer has submitted an offer on the property. It has been accepted by the seller (all contingencies, if there were any, have been met). In addition, both parties are taking measures to expedite the process of completing the transaction. Pending status is referred to as “off-market status,” which means that the house is no longer listed on the Multiple Listing Service.

Buyer will negotiate with their lender to get a mortgage and will be in charge of the selling of their present residence, if this is the case.

Unless there are any unanticipated events involving either the buyer or the seller, it will very probably end up in the buyer’s ownership.

The active contingent listing status may be in effect for a period ranging from one week to about three weeks.

What If Contingencies Can’t Be Met?

Occasionally, while it is rare, the contract stipulations for a property that is for sale may be unable to be satisfied by one or both of the parties involved in the transaction. If this occurs, the status of the house will be changed back to “active.” This opens the door to new bids while also removing the prior, approved offer from the buyer from consideration. What might possibly go wrong with contract contingencies that would cause them to be unable to be met? While it varies depending on the situations in question, some of the most typical explanations are as follows:

  • As a result of their poor income-to-debt ratio, low credit score, and previous liens against them, the buyer was turned down for a mortgage or other forms of financing. The buyer filed offers on more than one property, with the first being approved before the second. During the house inspection, the buyer discovered issues that they were unaware of, or that the seller refuses to remedy even after a lengthy discussion. In this case, the property evaluation was too low, which means that the home is valued at a greater amount than the buyer’s lender will give to finance for them
  • And

Overview of Home Listing Statuses

As a general rule, most MLS property listings progress through the following stages as they near completion.

New or Active

MLS listings that are fresh (3 days or fewer on the market) or active inform buyers who are browsing MLS listings that the property is for sale, that the seller is receiving offers, and that there are no current bids being considered. If you’re just getting started with your home hunt, this is the status to look for because it indicates the most direct path to closing.

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Active Contingent

Any anyone browsing at MLS listings who sees an active contingent listing knows that, while the property is not yet under contract, a buyer has submitted an offer and the seller has accepted it. As a result, they have now entered into a legally binding contract that is ready to go into force as soon as a few conditions (finance arrangements, inspections, repairs, and so on) are satisfied.

Offers may still be accepted at this point, but the seller may choose not to accept any further offers at this point in the process. We’ll go into more detail about this later.

Pending or Under Agreement

Once the conditions on a listed property have been satisfied, the contract will proceed as anticipated, and the buyer will try to secure financing while the seller completes any repairs that may have been arranged with the buyer. Days on Market (DOM) are no longer accumulated for the property while it is in this condition. Unless anything catastrophic occurs during this period, it is unlikely that the house will be put back on the market.

Sold

As soon as the buyer has obtained the title and deed, and ownership has been formally transferred, the listing status is changed to “sold.” It is no longer on the market until or until the new owner decides to put the house on the market again at a later date.

Can You Still Make an Offer on Active Contingent Listings?

Is it still possible to make an offer on a contingent listing if it is still regarded to be active? As long as the listing does not state that the seller is no longer taking bids on the property, you can still submit an offer and schedule a viewing for a contingent listing that is currently open. RealtorBrendan O’Dowellencourages his customers to submit offers on active contingent property that they are actually interested in for a variety of reasons, the most important of which is: It provides the seller with a clearly defined second choice in the event that the present accepted offer and buyer do not work out.

  • When you make an offer on a contingent listing that is currently active, keep in mind what you’re doing.
  • When a contingent listing is active, it already has an accepted offer on the table, and the listing will shift to a pending state as soon as the contingencies are satisfied.
  • This will occur if either the buyer or the seller fails to fulfill the contract stipulations, and the buyer’s approved offer is no longer available for consideration.
  • Always remember that you may submit an offer if the seller’s real estate agent is receptive to it and be the next in line if things don’t go as planned.

Is An Active Contingent Listing Worth Looking At?

What is the general advise when you come across an active contingent listing that you are interested in based on the information you’ve gathered? You’ll have to decide how much you like the property and when you’d like to close. You have no need to shy away from an active contingent listing that is still accepting bids and scheduling showings if you adore the home and are not in a rush to purchase it. Just keep in mind that if you submit an offer and it is accepted, you have entered into a legally binding contract.

The seller’s agent may not be showing the house till the status changes, but it may still be worth keeping a watch on a current contingent listing that you’re interested in.

Things do change in the realm of real estate transactions, and contracts do come to an end from time to time, as well. It’s understandable that you’d be willing to wait a few days to see whether the other offer’s stipulations can be satisfied if it’s the house of your dreams.

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Can I Still Buy That House? Contingent, Pending, & Under Contract in Real Estate

Finally, after much deliberation and thorough investigation, you’ve discovered the house of your dreams. The ad is labelled as “contingent,” “pending,” or “under contract” when you look at it on the internet, but it is not indicated as such in person. What exactly does this mean? Is it still possible to make an offer, or do you need to start over with your search? Not to be concerned! This essay discusses how to distinguish between contingent, pending, and under contract offers, as well as the many alternatives available to you when making an offer on your first house.

What does contingent mean when a house is for sale?

“Contingent” is one of several real estate terminology that you may come across while describing the current condition of a property listing. If you are on the market for a property, you may come across this term rather frequently. Even if you’ve discovered the right property for your family, the process may be quite difficult at times. then you’ll note that the current status is indicated as “contingent.” So, what does it imply in real estate when a property is dependant on another? When a property is categorized as contingent, it signifies that a buyer has submitted an offer, and the seller has accepted that offer; nevertheless, the contract is conditional on one or more events occurring, and the closing will not take place until those events occur, as described above.

Contingencies in real estate transactions can be triggered by a variety of difficulties and reasons.

  • Property inspection contingency– When a buyer’s offer is accepted and the buyer has paid a “earnest money” deposit on a home, the sale is nearly always dependent on the home having a satisfactory home inspection from a professional home inspector before the deal is finalized. The buyer and seller will review the agreement if the inspection reveals flaws with the home that were not mentioned prior to the agreement being reached. They will then attempt to come up with a solution together. The buyer may demand that the seller make necessary repairs, or the seller may agree to lower the sale price to pay the costs of repairing the problems. The buyer’s earnest money is refunded and the house is placed back on the market if the two parties are unable to reach an agreement on a fair resolution to their dispute
  • Contingency on mortgage approval– If a house buyer has not already been pre-qualified for financing, the sale may be dependent on the buyer’s ability to obtain financing. Alternatively, if the buyer cannot locate a lender willing to accept a mortgage, the transaction is invalid, the seller retains the earnest money, and the house is placed back on the market. In the case of a house buyer asking for a mortgage, the mortgage lender may appoint a professional third-party appraiser to determine the fair market value of the home in order to guarantee that their investment is profitable. Buyers who purchase a home whose appraised worth is less than the purchase price may be required to get extra financing. A buyer’s failure to comply with this requirement results in the cancellation of the transaction, withheld money from the seller, and the house being placed back on the market. Purchase agreement with a house sale contingency– A home buyer who already owns a home will occasionally make an offer that is contingent on their ability to sell their present property within a certain time period. This is frequently done in order for the buyer to be able to obtain financing for the new acquisition.

It is not rare for contingent transactions to break apart as a result of the contingency included in the agreement, which is not uncommon. A backup offer can be accepted by a homeowner whose home is in contingent status, and that backup offer will take precedence if the initial transaction does not go through. If you are interested in a contingent property, it makes sense for you to make an offer on the listing so that you will be in a position to purchase if something goes wrong with the initial transaction.

If you have any concerns or require assistance in navigating this sort of transaction, please do not hesitate to call a local Howard Hanna representative.

What does under contract mean in real estate?

A home that is active under contract, like a contingent property, is one in which the buyer and seller have agreed on terms, but the transaction is still in its early stages and may not come to fruition. It is possible for a property under contract to be placed back on the market owing to unanticipated complications that interfere with the terms of the present contract between the seller and the potential buyer.

In the meanwhile, you can make an offer on a home that is already under contract, and if your offer is approved and the initial transaction goes through for whatever reason, you will be in a position to acquire the property.

What does pending mean in real estate?

When a house is classified as pending, it means that an agreement has been reached, all contingencies have been resolved, and the transaction is on the verge of closing. Because all of the contract’s required criteria have been satisfied at this point, the contract has been executed at this point. It is still possible for a purchase to fall through in this circumstance, mainly as a result of a failed house inspection or finance difficulties. It is, on the other hand, far less prevalent. Depending on the situation, some real estate brokers may not be ready to take offers on houses that are currently under contract.

Please refer to our Real Estate Glossary section on real estate listing statuses for further information on what each of the different listing statuses means.

Please contact one of our Howard Hanna agents if you have any concerns regarding the property buying process or if you would like to make an offer on a specific listing that is contingent, pending, or under contract.

What Does Active Contingent Mean?

Scott Brodrick contributed to this article. Question and AnswersPosted inFAQOn If you’ve discovered the perfect house online but the MLS status is Active Contingent (AC), is it still worth your time to go ahead and visit the property in person?

Active Contingent – Sold Already?

If a house is classified as Active on the MLS, it signifies that it is currently available for purchase. That portion is straightforward. If the status is Pending, or Pending taking Backups, it indicates that the seller has accepted an offer and, if necessary, is accepting backup offers. However, Active Contingent typically indicates that the property in issue is available, but that an offer has been accepted subject to a condition. Buyer One has arrived first, but they must first sell their current residence before they can proceed.

The Texas Real Estate Commission form that controls contingent acquisitions is rather straightforward, and I’ll go through it briefly here.

Contingent on What?

The original offer from Buyer One, which has been accepted, is conditional on the sale of another home by a specific date. Other bids are still being considered by the seller.

How Buyer One Can Remove the Contingency

Now, if you, as Buyer Two, come along and make an offer, the seller will have the option to accept or reject it. Once a contingency has been removed, Buyer One will be given the opportunity to terminate the contract, which will typically come at a high penalty (increased Earnest Money at risk if the deal does not close). Depending on how they negotiated Offer One, the answer would be yes or no.

Waiving Contingency is a section of the TREC’s form. When Buyer One waives the contingency, they are committed to purchasing the property regardless of whether or not they sell their other property. This increases risk for Buyer One while lessening it for the seller.

What happens if Buyer One’s other property doesn’t sell?

Once Buyer One is freed from the contract due to the failure of the other property to sell by a specified deadline, the home becomes available once again –Active.

Should a Seller Accept a Contingent Offer?

So long as the conditions of the contingency are favorable to you, accepting an offer from Buyer One is not a significant risk for you as a seller. If you like assurance, a contingency is not the best option for you. (Your listing agent would look into the specifics of the house that has to be sold – whether it is under contract, whether it is properly priced and advertised, and so on. ) The TREC form addresses the waiver of contingencies, which results in higher Earnest Money for the seller.

As a result, you may make the deadline short and the charge for eliminating the contingency extremely expensive.

Some vendors may find this to be an excessive amount of uncertainty.

Can I Offer on an Active Contingent Home?

By all means, go ahead. It is still getting offers, which indicates that it is still active. It would be appropriate to inquire of the seller on the length of time required for the contingency to be removed, so that you may arrange your activities accordingly. Given this, it’s possible that Buyer One would have given greater conditions to compensate for the pending sale of another property. As a result, in order to be approved, your offer may need to be good in other areas as well. It is possible that the seller may be more willing to accept your offer if it is not reliant on the sale of another property.

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