What Does Contingent Mean on Redfin?

Navigating the real estate market involves understanding various listing statuses that indicate a property’s current stage in the sales process. These statuses, visible on platforms like Redfin, provide important clues about a home’s availability and the progress of a transaction. Familiarity with these terms is valuable for anyone actively searching for a home. A common status encountered is “contingent,” which signals a specific contractual situation for a property.

Understanding Contingent Status

When a home listing appears as “contingent” on a real estate platform, it signifies that a seller has accepted an offer, but the sale is not yet finalized. This status indicates the accepted offer includes specific conditions, known as contingencies, that must be met before the transaction can proceed to closing. The property remains an active listing, as there is a possibility the deal could fall through if these conditions are not satisfied.

This differs from an “active” status, which means the home is still available for offers without any accepted contract in place. It also contrasts with a “pending” status, which typically means all contingencies have been met or waived, and the sale is further along, primarily awaiting the final closing process. While both “contingent” and “pending” mean an offer has been accepted, a contingent status implies a higher degree of uncertainty until the contractual requirements are fulfilled.

Common Real Estate Contingencies

Real estate contracts frequently incorporate conditions designed to protect the buyer or seller.

The inspection contingency grants the buyer a specified period (often 10 to 17 days) to conduct a professional home inspection. If significant issues are found, the buyer can request repairs, negotiate a price reduction, or withdraw from the contract without penalty.

The appraisal contingency protects the buyer by ensuring the property’s value, as determined by a professional appraisal, meets or exceeds the agreed-upon purchase price. If the appraised value is lower, the buyer may renegotiate, pay the difference in cash, or terminate the contract. This usually takes 17 to 20 days.

A financing contingency (or mortgage contingency) allows the buyer to withdraw from the deal and retain their earnest money deposit if they cannot secure a mortgage within a specified timeframe (commonly 30 to 60 days). This provides time for loan application and approval, safeguarding against financial risk.

A sale of prior home contingency allows the buyer to cancel if their current home does not sell by a predetermined date. While it protects the buyer, sellers may find such offers less appealing due to added uncertainty and potential delays.

Implications for Potential Buyers

For prospective buyers, a “contingent” listing means the property is under contract, but the sale is not guaranteed. Some contingent listings, like “contingent – continue to show,” allow viewings, indicating the seller is open to backup offers.

Making a backup offer is often possible and strategic. If the initial deal’s contingencies are not met, or the primary buyer fails to close, a well-structured backup offer could become the primary contract. While most contingent deals proceed to closing (only 5-10% typically fall through), the possibility exists, influenced by market conditions and contingency types.

Progression to Sale

Once an offer with contingencies is accepted, these conditions must be addressed. For an inspection contingency, the buyer arranges a professional inspection (typically 10 to 17 days). Based on the report, the buyer may request repairs or credits, or choose to proceed.

The appraisal process involves a licensed appraiser assessing the property’s value. If the appraisal comes in lower than the agreed-upon price, the buyer and seller may renegotiate, or the buyer might cover the difference. For a financing contingency, the buyer works to secure final loan approval from their lender (often 30 to 60 days), submitting financial documentation and undergoing underwriting.

If all specified contingencies are successfully met or formally waived by the buyer, the property’s status typically progresses from “contingent” to “pending.” A “pending” status indicates that the primary hurdles have been cleared and the transaction is moving closer to the final closing. Should a contingency fail to be met, such as a loan denial or an unresolved inspection issue, the contract may be terminated, and the property could return to an active listing status.