Tag: Title company

What Does Contingent Mean in Real Estate?

What does the term “contingent” in real estate mean?

The term “contingent” means that the sale is subject to the fulfillment of the contract’s conditions. A contingent real estate listing is one in which the one selling has received an offering but has chosen to put it live until they ensure that all requirements have been completed.

The purchase will only proceed if the terms and conditions are fulfilled by both the seller and buyer parties. However, if a problem arises, one or both parties may be able to withdraw from the agreement. In this situation, a property with a contingent listing may reappear on the market for purchase.

What are typically real estate contingencies?

Both sellers and buyers wish to avoid unpleasant happenings as real estate dealing can involve significant financial outlays. To safeguard oneself against such unforeseen conditions, both parties, seller, and buyer, can incorporate contingencies in their deal. Below we have jotted down a few of the more typical ones:

Appraisal Contingency

Appraisal contingency would be included in an offering in case the buyer will be financing the purchase of the property. To ensure that the property is worth adequately securing the mortgage they are issuing; lenders have it assessed. The one lending may want a larger down payment or decline to approve the loan in case the property is appraised for less than it was anticipated. If the home appraises for less than expected, an appraisal contingency allows the buyer to cancel the transaction.

Home inspection Contingency

Buyers can perform a professional assessment of a house prior to their purchase which is possible because of a home inspection contingency. Through this, the buyer might get alert to any potential problem and required fixes. In addition, the buyer’s utmost willingness to pay to fix the house could be specified in the home inspection contingency. However, if the estimated repair expenses are deemed to be high, then it might be possible that the buyer will cancel the purchase.

Home sale Contingency

The buyer may intend to utilize the money from the sale of their current home to purchase their new house. In this circumstance, buyers might include a condition to their offering to stipulate that the recently made acquisition will go through if they are successful in selling their current residence by a specific deadline.

Title Contingency

A title contingency gives the purchaser the option to cancel the deal if, through research, they discover that the title to the property is not clear or if there are any charges on the property that may affect the buyer’s ownership rights after the purchase is made.

Mortgage Contingency

No matter the condition, if they have received the loan prior or in any other case, there is always a possibility that something might arise, causing the failure of their agreement with the lender. When a buyer has mortgage contingencies, they are released from responsibility if they are denied a loan regardless of making a reasonable effort to get it approved.

New housing Contingency

Sellers require housing once they vacate their current residence. Hence in case a seller accepts an offer but hasn’t found themselves a new place to live yet, they can include this contingency as it may let them call off the deal if they can’t move by a specific date.

What are the types of contingent statuses?

Continue to show

In this instance, the seller has agreed to an offer subject to certain conditions but still desires to showcase their property to other prospective buyers in case the deal goes through.

No show

Once the deal is closed, the seller no longer wants to show the house to other prospective buyers. This often indicates that the offering includes a small number of conditions that would not cause any further issues.

Short sale

When a listing is described as subject to a “short sale”, it signifies that the owner has agreed to an offering and is prepared to sell the house for less money than what they owe to their mortgage company. Since the lender is also involved, short sales may take a little longer to complete than ordinary. In certain circumstances, the seller retains the right to consider substitute offers if the original one is rejected.


The legal procedure known as “probate” is how the courts manage a decedent’s estate. The sellers of the homes sold through probate have already accepted an offering. However they are still looking for offers at the other end to be on the safer side because the probate process makes the transaction more challenging.

What Sets Contingent Offers Apart from Pending Offers?

When seeking to buy a home, you would witness many properties. Some might have “for sale” status, some could say “Contingent,” while others might say “Pending,” and so on. These words and phrases show that the house is at some point in the selling process. These statuses will be helpful and will enable you to identify houses that you might purchase only if you are aware of the variations between pending and contingent bids. Hence, if you are considering placing a bid on any one of them, it can advise you on the best course of action.

What are the reasons for Contingent Status?

What are the reasons for Pending Status?

The house has not passed inspection. Despite accepting the offer, the seller will continue to consider additional bids.
The buyer has not yet secured the financing. Despite accepting the offer, the seller is still displaying the house because of a technicality.
The buyer must first leave their current residence to close the sale. Despite the seller accepting the offer, the sale has not yet been completed after three or more months.

How long would it take to change from contingent to pending?

The time period would fluctuate significantly from one payment to the other; it depends on some factors. For instance, a contract will probably progress more quickly if there are fewer contingencies. At the same time, the deal without a kick-out provision could take longer since there will be no time limit imposed for the buyer to fulfill all requirements.

What Prospective Buyers Should Know About a Contingent House Listing?

It’s critical for the purchasers to comprehend what the listing’s contingent clause signifies. There might be a wide range of complications that prevent the offer closing of the residence.

There are differences between contingencies in terms of how likely it is that they will prevent the transaction. Therefore, you must be aware of any eventualities that could affect a house of your interest.

A contract will be signed once the seller accepts a buyer’s offer, and it will typically include conditions that both sides must meet. These conditions give the customer the option to back out of the agreement if they so choose. After agreeing to the terms of the contract, the seller cannot accept any other offer; however, if the transaction fails, a different buyer may take over. The seller may accept any backup offers even though the residence is advertised as contingent.


Which could cause something to go wrong in the Contingent offer?

There are many things that could go wrong with a contingent sale. For example, in case the buyer is unable to secure the expected mortgage, an issue may occur.

Buyers typically receive a letter of preapproval for their mortgage, assuring them that now they can obtain the loan necessary to purchase the property. However, the letter would go to waste if the information they provided to the lender was not entirely truthful and accurate. Hence, having a preapproval letter doesn’t guarantee that the desired mortgage will be granted, and this is why some property sales usually fall through.

There may occasionally be other issues as well, even in the case the one lending has given the lender proper information. For example, their mortgage application may be turned down if their financial condition has changed since receiving preapproval, such as if they will witness a decline in their credit score.

Maybe they have applied for another loan or forgot to pay any bill. Hence, there are many numerous methods to lower your credit score, which can cause a mortgage application to be rejected. At that time, a borrower might need to switch gears and obtain a mortgage with terrible credit. They might not even be able to extend the financing contingency with the seller. For debtors, alteration in the interest rates might be problematic because qualifying for a home loan is simpler when the interest rates are lower. However, higher interest rates may result in more contingencies that are not met.

Is It possible to Make an Offer on a Contingent Home?

Potential purchasers are often still able to submit offers during the contingent sale period. The sale is still regarded as active. So, there’s still a chance that the present buyer would renege on the agreement or that unexpected mishaps will force the seller to hunt for any other buyer.

They will frequently have a condition that prevents them from buying the new property until their current house is sold. This way, the seller would start to show more interest in other prospective purchasers and the offerings they are prepared to make if the existing buyer is having trouble selling their home.

Keep in mind that the contingency will only be satisfied if a buyer is successful in selling their house promptly. This will result in the listing becoming pending, leading the sale to closure.


Although it is stressful, buying a property is not easy. When purchasing a house, contingencies might assist reduce a few of the risks, but they can appear to be a barrier when attempting to resell. It would be best to comprehend contingencies and how they will impact you to make the decision wisely. Now that you know what contingent implies in real estate, maybe you have a lot better knowledge of it.

The JS Realtor Team is so committed to serving our clients through-out the process. We are here to make the home buying experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE Buyers Guide and connect with us today! Text/Call Jeff at 614.721.0450 or email Jeff@JSRealtorTeam.com. Offices in Columbus & Mansfield to serve Central Ohio.

Top 5 Things Appraisers Look For To Value A Home

The General Neighborhood 

When inspecting homes, appraisers frequently speak with the neighbors to Guage their feelings about residing in the general area of the house. 

Neighbors are a great source of information about the attractiveness and value of a particular area. For example, if you want to purchase a home, but most of your neighbours say the high crime rate in the region, you should factor that into your offer price.

Appraisers frequently use recent selling prices from other residences in the neighborhood to help them identify what is reasonable and fair in establishing comparable selling prices for their documents. 

The Home’s Condition 

Another factor appraisers consider is the overall condition of the residence. They will inspect your home to ensure that it is rigid and free of problems that could jeopardise its liabilities, such as the establishment or roofing problems.

Appraisers will also check the condition of your siding, sewer lines, roof, HVAC, piping, and other systems. The estimate may suffer if they are old and in need of renovations.

Furthermore, appraisers look for indications that your home has not been appropriately maintained. If they notice flaws such as peeling paint, sheared rugs, smashed windows, or leaking pipes and faucets, the value of your home may suffer.

When evaluating a home, appraisers examine “curb appeal” and how a residence appears from the street concerning other residential properties. Although lot size and views are considered, having usable, clean, and appealing land adds to the appraised value and attraction of the home to potential buyers. In addition, window boxes, patio planters, and a new mailbox provide a lot of beauty without much labor or cost if you aren’t seeking to overhaul landscaping completely.

The Property’s Floor Plan 

This is among the most important aspects of house appraisals. The appraiser can determine whether or not the home’s areas lend themselves to valuable assets by determining how much area is well distributed.

In other words, possessing well-distributed space may increase the resale value of a specific property. This is because some buyers may want certain features present in their own homes. This is more about appearances.

On the other hand, floor plans are essential to appraisers because they can improve a property’s market value. Consider the possible resale value when looking for a home, as having too much or too little floor area can make or break an offer.

Upgrades and Renovations 

Certain additions and upgrades can help to raise a home’s value. A new kitchen, refurbished bathroom, renovated basement, and freshly installed landscaping, for example, can increase a home’s value. Therefore, when determining the home’s value, an assessor will consider these changes.

Type Of Construction Materials Used 

The kind of materials utilised to construct the home would also be considered. A home with higher-quality and more contemporary finishes will be worth more than one built with low-quality, dated materials. Updating materials can help a homestay in better shape while also enhancing its efficiency and degree of safety.

Materials and worn or damaged sections are included on appraisal checklists, as well as whether your property is concrete or wood-sided are considered. For example, brick is prized for its insulation and high durability. However, sections of deteriorated inter-brick cement and gaps in between the foundation and exterior walls may require patching to improve the look. Another instance where siding can add value but is not necessary for safety purposes is replacing aged wood with siding. Another modification that can add value to an older property is adding insulation between outer and interior walls and repainting the weathered exterior of the siding.

Before displaying a home, power-washing the exterior is recommended since it is a reasonably low-cost project that may dramatically improve the home’s appearance by cleaning accumulated debris from small cracks. If the sealing and framing are worn out, replacing the windows is a good idea; however, it’s one of the pricier home improvement chores. On the other hand, potential purchasers prioritise decent window conditions on their wish lists.

Bedrooms & Bathrooms 

Before spending $20-30 thousand or more on a bathroom, seek professional advice to ensure that the upgrade would pay for itself based on the appraised value. You may break even by adding a newly designed bath addition to a home that has declined due to the location or market prices, but you might not.

Another item to think about is the bedrooms in your house. When is the bedroom no longer a bedroom? When it comes to selling, some properties have rooms with no closets, and the owners discover that space without a closet cannot be represented as an extra bedroom. It’s only fit for a study or an “extra” room.

Temperature & Appliances 

Home evaluations consider the age and efficiency of appliances, heating, ventilation, and air conditioners (HVAC) units, power components, and drainage. Unfortunately, replacing older appliances isn’t always cost-effective for many people wanting to sell their homes. Still, assessment value is unlikely to decline when everything is in good condition, clean, or has a track of servicing and even warranty documents. However, if things are in bad form or aren’t working correctly, it could have a negative impact on the home’s value. Positive improvements include new appliances and update supporting fixtures, including ducts and pipes.

A Final Word 

This article enlisted the factors which appraisers look for during home valuation. These include the general neighborhood, the home’s condition, the residence’s floor plan, the materials used in the home’s construction, bedrooms, and bathrooms, as well as temperature and appliances. 

 The Appraisal Process does not have to be scary. That’s why our team at JS is so committed to serving our clients through-out the process. We want to make the home buying or selling experience one that preserves the excitement but sheds the anxiety. We provide clear guidance and advice to help you find the right home, at the right price, in the right neighborhood. Download our FREE planning kit and connect with us today! 

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