When a real estate listing is marked as “active contingent,” it means that the seller has accepted an offer from a buyer, but the sale is still subject to certain conditions. These conditions may include the buyer securing financing or completing a home inspection. Until these conditions are met, the property remains on the market and other buyers can still submit offers. It’s important for potential buyers to be aware of the contingencies as they may affect the timeline and likelihood of the sale.
When browsing real estate listings, you may come across the term “active contingent.” But what does it actually mean? Let’s unravel this intriguing aspect of the real estate world.
An active contingent status on a real estate listing indicates that a property is under contract but with certain conditions that need to be fulfilled for the sale to be finalized. This could include contingencies such as financing, inspections, or the sale of another property. Essentially, the property is considered “active” because it is still available to be shown to potential buyers. However, it is “contingent” upon the successful resolution of the specified conditions.
When you’re browsing through real estate listings, you may come across the term “active contingent.” But what does it actually mean? Understanding the different status categories used in real estate listings is essential for both buyers and sellers. In this article, we will explore what “active contingent” means on a real estate listing and how it can impact your buying or selling process.
In simple terms, “active contingent” indicates that a property has an accepted offer or contract but remains on the market. It means that while the property is still listed and active, there are certain conditions or contingencies that need to be fulfilled before the sale can be completed. These conditions could include the buyer obtaining financing, completing inspections, or selling their current home.
Now, let’s delve deeper into the concept of active contingent and explore its implications for both buyers and sellers.
For buyers, seeing a property listed as active contingent means that it might still be available for purchase, but there are certain hurdles that need to be overcome for the sale to proceed. These contingencies are typically outlined in the purchase agreement or contract.
One common contingency is the financing contingency, which allows the buyer to back out of the deal if they are unable to secure a mortgage loan. This contingency gives the buyer time to apply for a loan and obtain approval before committing to the purchase.
Another common contingency is the inspection contingency, which allows the buyer to have the property inspected by professionals. If any major issues or defects are found during the inspection, the buyer may ask for repairs, negotiate a lower price, or choose to walk away from the deal.
Buyers should be aware that in a competitive market, properties listed as active contingent can attract backup offers. Backup offers are secondary offers that come into play if the primary offer falls through. If you’re interested in a property that is actively contingent, it may be worth discussing the possibility of submitting a backup offer with your real estate agent.
For sellers, accepting an offer that is contingent on certain conditions can be a risk. While it means that they have a potential buyer interested in their property, the sale is not guaranteed until all contingencies are met. During this period, the property remains on the market, and the seller can continue to receive offers.
However, sellers should keep in mind that accepting an active contingent offer means that they are essentially taking their property off the market for a period of time. If the buyer fails to satisfy the contingencies and backs out of the deal, the property will need to be relisted, potentially delaying the sale process.
On the other hand, if the contingencies are successfully met, the sale can proceed and the property will move from the active contingent status to a pending or under contract status. At this point, the deal is considered more secure, and the likelihood of closing the sale is higher.
Ultimately, whether accepting an active contingent offer is the right decision for sellers depends on their individual circumstances, market conditions, and their level of comfort with the potential risks.
Both buyers and sellers can benefit from working with experienced real estate agents who can guide them through the active contingent process. Real estate agents are well-versed in the intricacies of the buying and selling process and can provide valuable advice and support.
Buyers should communicate their interests and intentions to their real estate agents, especially if they are interested in submitting a backup offer for a property listed as active contingent. They can help buyers understand their options and facilitate the backup offer process.
Sellers, on the other hand, should discuss the implications and potential risks of accepting active contingent offers with their real estate agents. Agents can provide insights into market conditions, the likelihood of meeting contingencies, and alternative strategies to consider.
Overall, understanding active contingent listings and their implications is crucial for effectively navigating the real estate market. By staying informed and seeking professional guidance, both buyers and sellers can make informed decisions that align with their goals and priorities.
Active contingent listings in the real estate market indicate that a property has an accepted offer but is still subject to certain conditions or contingencies. For buyers, it means that there are hurdles to overcome before the sale can be completed, while sellers take on the risk of potential delays or the need to relist if the contingencies are not met. Working with experienced real estate agents can provide valuable guidance throughout the active contingent process.
Understanding the implications of active contingent listings and actively engaging with real estate professionals can help buyers and sellers make informed decisions that align with their goals and priorities.
In this section, we will address some common questions regarding the term “active contingent” on a real estate listing. It is important to understand the meaning behind this term as it can have implications for both buyers and sellers in the real estate market.
When a real estate listing is marked as “active contingent,” it means that the seller has accepted an offer from a buyer, but there are certain conditions or contingencies that need to be met before the sale can be finalized. These contingencies can vary but commonly include things like home inspections, appraisal, or the buyer securing financing. Until these contingencies are satisfied, the property remains on the market and other offers can be considered as backup options.
It is important to note that an “active contingent” status does not guarantee the sale will go through. If the buyer is unable to satisfy the contingencies within the agreed-upon timeframe, the seller may choose to cancel the contract and consider other offers.
The length of time a property stays in the “active contingent” status can vary depending on several factors, such as the specific contingencies in the contract and the local real estate market conditions.
In some cases, the contingencies may be satisfied relatively quickly, and the property can move forward to the final stages of the sale within a couple of weeks. However, if the contingencies are more complex or if there are delays in meeting them, the property may remain in the “active contingent” status for several weeks or even months.
Yes, you can still make an offer on a property that is marked as “active contingent.” Depending on the specific terms of the contingency, your offer may be considered as a backup option in case the current buyer is unable to fulfill the contingencies or decides to cancel the contract.
However, it is important to note that if you submit an offer on a property that is “active contingent,” the seller may choose to proceed with the current buyer if the contingencies are fulfilled within the agreed-upon timeframe.
There are several common contingencies that can cause a property to be marked as “active contingent.” These include:
– Home inspection contingency: This allows the buyer to have a professional inspection of the property and negotiate repairs or credits based on the findings.
– Appraisal contingency: This ensures that the property is appraised at or above the agreed-upon purchase price. If the appraisal comes in lower, the buyer may have the option to renegotiate or cancel the contract.
– Financing contingency: This allows the buyer to secure financing for the purchase of the property. If the buyer is unable to obtain the necessary financing within a specified timeframe, they may terminate the contract.
– Sale of another property contingency: In some cases, a buyer may need to sell their current property before proceeding with the purchase. This contingency allows them a certain amount of time to sell their property and complete the transaction.
If the contingencies are not satisfied within the agreed-upon timeframe, the seller may have the option to cancel the contract. This means the property will no longer be considered “active contingent” and can be put back on the market to consider other offers.
However, it is also possible for the buyer and seller to negotiate an extension of the contingency period if both parties agree. This can be beneficial if the buyer needs more time to fulfill the contingencies or if there are valid reasons for the delay.
Active contingent on a real estate listing means that a property is under contract but with certain conditions that need to be met before the sale can be finalized.
This typically means that the buyer has made an offer and the seller has accepted it, but there are contingencies, such as a home inspection or financing approval, that still need to be satisfied.