This type of contingency is found in around half of the purchase contracts. The financing contingency makes sure that the buyer can secure the amount of finance they need for the purchase. The majority of homebuyers use a mortgage to finance their purchases. The home inspection can lead to some delays in the process, too, for around 10% of cases. If the home inspection finds severe problems, or the seller doesn’t agree to repair or provide credits, the buyer can walk away. Around 60% of sales have this contingency, and it ensures that the buyer isn’t buying a property with serious faults. The most common contingency is the home inspection contingency.

Common real estate contingencies include the following: Not all sales will have contingencies with them, but most will. This protects the seller should something go wrong, giving them the option to move on to another buyer quickly, if necessary. The contingent status typically allows the home to be shown to other possible buyers, allowing backup offers to be made. It shows that the contract has been agreed upon, but some work still needs to be done before closing.

The contingent label in a listing indicates that the seller has accepted the offer however, certain things need to happen before things can move on. Despite this, there can still be room to negotiate the conditions of the sale. It means that both parties have accepted the terms within the contract, now legally binding. Two important statuses in the MLS are “Contingent” and “Pending.” They show that you have a buyer who has signed a contract with you.

Update in real estate lingo