Contingent Status: How Conditions Impact Your Home Sale

Answer

When a property is marked contingent in a real estate listing, the seller has accepted an offer but the sale hinges on meeting specific conditions. In practice, a contingent status signals that both buyer and seller must clear certain hurdles—such as inspections, financing or appraisals—before the contract becomes binding and moves to “pending.”

Here are the most common contingencies that can affect your purchase or sale:

• Home Inspection Contingency
  Gives the buyer a set period (typically 10–17 days) to hire a licensed inspector. If serious defects emerge, the buyer may request repairs, concessions or cancel without penalty.
• Financing Contingency
  Protects buyers who need a mortgage. It allows a specified window (often 21–30 days) to secure loan approval. If financing falls through, the buyer can back out and recover their earnest money.
• Appraisal Contingency
  Ensures the lender’s appraiser values the home at or above the agreed sale price. If the appraisal is low, the buyer can renegotiate price, pay the difference in cash or terminate the contract.
• Sale of Buyer’s Current Home
  Common in competitive markets, this contingency lets buyers make an offer only after their own home closes. Timelines vary, but contracts often require proof of sale within 30–60 days.
• Title and Survey Contingencies
  Allow buyers to review title reports and property surveys to confirm clear ownership and correct boundaries before proceeding.

Once all contingencies clear—meaning inspections and repairs conclude, financing and appraisal meet requirements, and any linked home sales close—the listing status shifts from contingent to “pending” and moves toward closing. If a contingency deadline passes unmet, either party can cancel, usually triggering the return of the buyer’s earnest money.

Contingencies serve as important safety nets for buyers and sellers, balancing risk and protecting investments. Buyers are recommended to verify deadlines and conditions in their purchase agreement, consult a licensed real estate agent for local practices, and consider working with a real estate attorney if complex issues arise.

Before making a final decision, it’s advisable to check with a licensed local attorney or real estate agent to ensure you understand all contingency terms and timelines for your market.