What is a contingent house?
Hi! I'm Chuck VanderStelt, the founder of Quadwalls.com, I'm a real estate agent with listing leaders in Valparaiso, Northwest Indiana. This morning, I wanted to talk a little bit about a contingent house.
What does it mean when a house is contingent and what is a contingent offer?
00:14
Contingent means that the seller of that home has accepted a buyer's offer but - and that's the big part - some other event or condition needs to be satisfied before that home purchase moves towards closing. I'll talk about what the four most common types of contingencies are.
00:38
The first one is subject to inspection. This means the buyer wants to have the home inspected and make sure there's no defects or anything like that.
00:48
The next common contingency is contingent on sale. This means the buyer of the home has a home that they have to sell and they do not yet have an accepted offer on this home that they have to sell.
01:07
Another one is contingent on close. That's very similar to the contingent on sale. Contingent on close means the buyer has put an offer on this home here, this is the one you're seeing online that's contingent and they've got home over here that they need to sell in order to complete this purchase. But this home they have to sell, they now have accepted an offer on it. So that's a contingent on close.
01:31
The last one in my market is a contingent please show. Contingent please show means the seller has accepted someone's offer but something really unique is going on. I like to think of this contingency is the catch-all. It's when there's some type of condition or event that needs to be satisfied and doesn't fit neatly into the other types of contingencies. Maybe it's a really long closing time period or the buyer has some type of special situation that they're not really sure about.
02:04
The next question that we get a lot is the timeline. How long can a house be contingent? It can go on for weeks or months. It really depends on which contingency it is and I have an example. There was a home that I have where I'm representing the seller and our buyer has a home to sell and we keep giving this person more and more time to get their home sold. So we keep renewing so that's causing that contingency time buying and go even longer. And then even once they do get their home sold and there they get it under contract, they're going to want to inspect this home over here so we're going to switch contingencies. You can see can a home be contingent for weeks you could even turn into a couple of months.
02:48
What's the difference between pending and contingent? A contingent home means that the seller has accepted an offer but some event or some condition needs satisfied. A pending home means that the seller has accepted an offer and all of that stuff has been satisfied, the inspections have been done or the buyer has been able to get their home sold and get that under contract. Everything is done or done enough that there is in agreement as to how everything will sort itself out. Don't spend a lot of time looking at a home that's pending. your likelihood to get in that house is very very low.
03:25
That leads to the last question which is should you be looking at contingent homes. The answer is yes. If you see a home online, you really like it and it says that it's contingent, don't stop there, pick up the phone, give me a call or give your real estate agent a call. If you're on my website Quadwalls.com, reach out to us. We can investigate that contingency, call the listing agent, find out what's going on with the property and get back to you and let you know the likelihood that you get that home. That's a little bit of understanding of contingencies.
04:04
If you are selling or buying a house on contingency in Northwest Indiana and need help from the expert real estate agents, feel free to reach out to us with any questions and take a look at Quadwalls.com.
Thanks for watching this video!
Watch the video and comment: have you ever bought or sold a contingent house? Would you buy such a house?
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