If the current buyer is unable to lift their contingency in time, you can terminate the agreement, return their earnest money, and start negotiations with the next buyer. HomeLight-recommended real estate agents are top-tier negotiators who understand the market data that helps you save as much as possible when buying your dream home. You can use the inspector’s findings to decide whether to proceed buying the home as-is, negotiate repairs (or money for repairs) with the seller or walk away without penalty. As a buyer, putting a home inspection contingency in any purchase agreement is a good idea. This contingency gives you a short window to hire a professional home inspector to examine the home’s condition and advise you about the severity of any identifiable problems.
One Reply to “Can I Still Buy That House? Contingent, Pending, & Under Contract in Real Estate”
If the buyer can’t move forward, the seller “kicks them out” for the better deal. Buyers commonly use contingencies in real estate contracts to protect their interests. If a contingency can’t be met, the buyer is free to walk away with their deposit money intact. Ask your real estate agent to speak to the listing agent to find out if they are accepting backup offers at this stage of the game. Your agent should be able to get a feel for if the deal is expected to go through or not. If they are open to backup offers, have your agent inquire as to what their ideal offer is so you can make a competitive one.
What Are Common Contingencies During A Home Sale?
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You found what might be your forever home but notice that it’s listed as “contingent” or “pending.” What does this mean? While both contingent and pending mean that the seller has accepted an offer, neither necessarily means an offer you make would be left out in the cold. Let’s explore what contingent vs. pending means for your homebuying journey and how you still might be able to purchase the home you’ve been eyeing. Sellers aren’t a big fan of sale contingencies, so they’ll often include a kick-out clause in the contract. That means the seller can continue to show the home and accept offers during the sale contingency period. If the seller gets a better offer, they’ll allow the original buyer 72 hours to drop the sale contingency and proceed with the deal.
Ask an Agent
Since making an offer on an active contingent property requires careful consideration and strategic planning, your real estate agent can do some research and help you with this process. If you decide to accept an offer with a home sale contingency, negotiate the terms in your favor first by adding a kick-out clause. This clause states that you can continue marketing your home, and if you receive a better offer, you can cancel the contingent offer to pursue it. The seller has accepted an offer with contingencies, and has not set a deadline for them to be met.
Can you make an offer on a contingent or pending home?
Kristine Gill is a former newspaper reporter who spent five years as a spokesperson for a law enforcement agency. Presley is a Seattle based writer covering interior design trends, home improvement, and market updates. She has lived in San Francisco, Los Angeles, Chicago, and Washington, D.C., giving her a unique perspective on the diversity of U.S. real estate. When a home is part of a homeowners association (HOA), examining the association’s rules, meeting minutes and financial status before closing is essential. Some properties, especially in disaster-prone states like Florida, can be expensive to insure or even uninsurable due to their location or loss history. Most people want homeowners insurance to protect their investment, and even if they don’t, their mortgage lender will require it.
Additionally, your Realtor® can contact the listing agent to learn more about the transaction. Your agent should report back to you with information and advice about whether or not making an offer on a contingent house is a good idea or not for that particular home. If the home is pending, it’s unlikely you’ll be able to make a backup offer, but it’s not impossible. The listing agent can provide more information on whether it’s worth it to throw your hat into the ring. Lenders require an appraisal to confirm the value of your would-be home so they don’t lend you more than the property is worth.
If you wish to report an issue or seek an accommodation, please contact us at She also suggests touching base periodically to see if they’ve made progress on their home sale. This way, you maintain a positive relationship in case you decide to circle back to their offer.
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Hubbard Clause
Can you buy a contingent house depends on the contingency in place. Regardless, it may not be the best use of your time and emotional energy. Bank deposit accounts, such as checking and savings, may be subject to approval. Deposit products and related services are offered by JPMorgan Chase Bank, N.A. Member FDIC. Chase online lets you manage your Chase accounts, view statements, monitor activity, pay bills or transfer funds securely from one central place. For questions or concerns, please contact Chase customer service or let us know about Chase complaints and feedback.
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Sometimes, a listing will go straight from active to pending — often when there’s an all-cash offer involved. When you accept a contingent offer, your agent will update your listing status to indicate that your home sale is in progress, but not yet final. Bear in mind, you can’t just ditch your first buyer the minute a higher offer comes in; the first contract would need to fall through legitimately before you accept a back-up offer. A contingent offer means that a seller has accepted an offer but hasn’t satisfied the buyer’s requirements to close the deal. Pending status means that an offer was accepted, and all contract contingencies are addressed, so the purchase is nearing completion.
It may also be helpful to know that the most common reasons for offers falling through last year were job losses on the part of buyers and issues arising from home inspections. Even though both parties agree on a sale price, the lender can’t offer you a mortgage that’s larger than what the home is appraised for. In a very overheated or rapidly changing real estate market, meeting that appraisal number can often be an issue, but that doesn’t mean you’re out of luck. While a contingency can reduce the risk for a buyer, the seller might prefer that the offer comes with no contingencies to give themselves the best chance at actually selling their home. The buyer, of course, wants to make an offer that protects them by including contingencies.
The seller has the option to accept, reject or counter the contingent offer. In conclusion, how long does a house stay in contingent status for no time at all or as long as several months. Typically, though, a house is often in contingent status for about 20 to 30 days before switching to pending.
Of course, that doesn’t mean that you have to have the cash on hand to buy the new house before you sell yours. Your lender may be able to help you with a bridge loan or suggest other financial strategies. Rocket Mortgage® doesn’t offer bridge loans, but our friends at Rocket LoansSM may be able to help you with a personal loan.
When submitting an offer on a contingent house, keep in mind that you could end up with a more complicated home buying process. Depending on the situation, it may be advisable to include your own contingencies in your bid to protect your deposit. We recommend discussing all possible outcomes with your real estate agent before proceeding.
View today’s mortgage rates or calculate what you can afford with our mortgage calculator. We provide peace of mind that your home will sell, plus list your home on the market to maximize your earnings. Pending statuses also have subcategories, each with a different definition. Scrambling to find an available home inspector so late in the process can add unnecessary stress,” says broker Andrea Saturno-Sanjana of Coldwell Banker Warburg. Wostal recommends discussing these matters at length with your agent before following up in writing to ensure all parties are on the same page.
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