I have noticed that many listings are marked as contingent when they are posted. Why does this happen? What’s the point of posting them, and how can you get ahead of this situation?
Hi!
When a property is marked as “contingent,” it means that the seller has accepted an offer, but the sale is still dependent on certain conditions being met.
These conditions, or contingencies, can include things like the buyer securing financing, the home passing an inspection, or the buyer selling their current home.
Why are they posted?
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Transparency: Sellers and agents post contingent listings to keep the market informed about the property’s status. It shows that while an offer has been accepted, the deal isn’t final yet.
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Backup Offers: By keeping the listing active, sellers can attract backup offers in case the current deal falls through.
How to get ahead of this situation?
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Act Quickly: If you see a property you like, act fast. Get pre-approved for a mortgage and be ready to make an offer.
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Submit a Backup Offer: If a property is contingent, you can still submit a backup offer. This way, if the current deal falls through, you might be next in line.
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Stay Informed: Work closely with your real estate agent to stay updated on the status of contingent listings and be prepared to act if they become available again.
Great points! Another strategy to consider is negotiating contingencies.
Sometimes, buyers can negotiate with sellers to remove or modify certain contingencies to make their offer more attractive.
For example, if you’re confident in your financing, you might waive the financing contingency.
Additionally, building a strong relationship with your real estate agent can be incredibly beneficial.
A well-connected agent might have insider knowledge about upcoming listings or properties that are about to become available, giving you a head start.
Lastly, being flexible with your requirements can also help. If you’re open to different neighborhoods or property types, you might find more opportunities that fit your needs.
For what it is worth, I signed a contract for a house on Tuesday.
Redfin says it’s pending.
Realtor.com still says it’s active.
According to Zillow, it is “off market”.
So, who knows.
When I was shopping, Redfin was about as good as the agent’s MLS site for listing and status updates, with the exception of “Coming Soon” listings, which did not appear on Redfin. However, Redfin-listed “Coming Soons” do not appear on the MLS site. I liked a couple of the map capabilities on the MLS page that allowed you to see surrounding parcels.