So you want to buy a house and in your search find a perfect match. Waves of excitement take over as you start picturing all of the decor, paint colors, and kitchen cabinets from Pinterest that you’ve always wanted. All day you are pinning more ideas for this house while you wait to hear back from the realtor. You finally get an email saying the house is active/contingent with an accepted offer. Your heart breaks, but then you start to ask yourself what this really means. Should you still put in an offer?
An active/contingent listing is one that had an offer submitted and accepted, but with issues that must be resolved before a sale can be finalized. Some issues could include an inspection, a buyer’s mortgage approval, and even the buyer’s ability to sell their home. When the issues are resolved it then goes to a pending sale once a contract is executed. So how likely is it that a sale would fall through? It all depends on a situation but many agents advise buyers to submit an attractive back up offer because the seller may be more willing to let the deal fall through if they know there is great back up offer. Sometimes an inspection does not go as planned or they can’t get the finances together even with a mortgage approval or possibly their orders changed in the military having to move again. If it’s really your dream house but someone beat you to it, there is always still a chance that your back up offer would be accepted!
Ericson, C. (n.d.). Find Real Estate, Homes for Sale, Apartments & Houses for Rent – realtor.comÂ®. What Does Active Contingent Mean? A Home Sale With Conditions | realtor.comÂ®. Retrieved December 16, 2017, from http://www.realtor.com/advice/buy/what-does-active-contingent-mean/