Contingent Homes: Should You Bother Checking Them Out?

When it comes to buying a house, the term contingent may come up during your search. This means that the seller has accepted an offer but the sale is still dependent on certain conditions, such as the buyer getting approved for a mortgage or selling their current home. So, is it worth looking at a house that is contingent? Yes, it can be! Below are some points to consider:

Homeowners who have their home in a contingent state can make an alternative offer, and the offer will be considered in the event that the original deal does not work out.

If you are interested in the idea of a property that is contingent, it is sensible to submit an offer on the property to ensure that you are in a position to purchase if something happens to the transaction.

You may be able to negotiate better terms with the seller if they are in a time crunch to sell due to the contingent status of their property.

A property being listed as contingent may also indicate that it has been on the market for a while and the seller is eager to move forward with a sale.

In summary, while a contingent property may require some extra due diligence on your part during the buying process, there are potential opportunities that make it worth considering.

Understanding Contingent Homes

When a homeowner puts their home in a contingent state, it means they have accepted an offer from a buyer, but the deal is not yet finalized. There are various reasons why a deal may not go through, for example, the buyer may have trouble securing financing or the home inspection might reveal serious defects that the buyer is not willing to overlook. When a home is in this state, the seller can accept alternative offers from other buyers, but these offers will only come into play if the initial deal falls through. Although contingent homes can be a headache for both buyers and sellers, they are not uncommon. Many homeowners choose to accept contingent offers because they are eager to sell their home, but want to ensure they have a backup plan in case something goes wrong. For buyers, contingent homes offer an opportunity to make an offer on a property that might not otherwise be available on the market.

Benefits of Looking at Contingent Homes

If you are interested in purchasing a home that is in a contingent state, there are several benefits to consider.

• You may be able to negotiate a better deal: If a homeowner is accepting alternative offers, they may be open to negotiating on price or other terms to secure a backup deal.
• Chance at a great house: Contingent homes can be great opportunities because they are not being actively marketed, meaning there may be less competition for the property. You might be the only one making an offer.
• Motivated seller: In most cases, sellers in a contingent state are highly motivated to sell their home. They have already accepted an offer, but are still trying to find a backup plan just in case. This can give you leverage as a buyer.

Keep in mind that although a contingent home may offer some great benefits, there are risks involved as well.

How to Make an Offer on a Contingent Home

If you are interested in making an offer on a home that is in a contingent state, here are some steps to follow:

1. Get pre-approved for a mortgage: Before making an offer, ensure that you have been pre-approved for a mortgage. This will show the seller that you are serious and qualified to purchase the home.
2. Work with a real estate agent: A real estate agent can help you navigate the complex process of making an offer on a contingent home. They can work with you to create an offer that is competitive and stands out from other offers.
3. Be prepared to be patient: Contingent home transactions can take longer to close than traditional transactions. You may need to be patient and flexible with the seller’s timeline.

Risks of Purchasing a Contingent Home

Before making an offer on a contingent home, it’s important to weigh the risks involved. One of the biggest risks is that the deal may fall through and you will be left without a home. Additionally, contingent homes can take longer to close, which can be frustrating for buyers who are eager to move in. It’s also possible that the seller may receive a better offer while the deal is in a contingent state, putting your offer in jeopardy.

Alternatives to Contingent Homes

If you decide that the risks associated with purchasing a contingent home outweigh the benefits, there are other alternatives to consider. One option is to look for a non-contingent home that is already on the market. These homes may be priced slightly higher, but they offer more stability and certainty in the buying process. Another alternative is to rent a home while you continue your search for a property. Renting can give you time to build up your down payment and get a better sense of what you are looking for in a home.

Working with a Real Estate Agent for Contingent Home Offers

Working with a real estate agent can be incredibly beneficial when making an offer on a contingent home. An experienced agent can help you avoid common pitfalls and navigate the complex buying process of a contingent home transaction. They can provide valuable advice and guidance throughout the transaction to ensure that you are making a smart investment. In addition, a real estate agent can help you create an offer that is not only competitive, but that also protects your interests in the deal. Overall, contingent homes can be a smart choice for buyers who are patient and willing to take on some risk. By working with an experienced real estate agent and carefully weighing your options, you can successfully make an offer on a contingent home and find your dream home.