If you’re looking to buy or sell your home, or even if you’re the top realtor in Las Vegas, it’s always good to brush up on important real estate vocabulary.
In everyday language, contingent is usually synonymous with dependence on certain conditions. Think: contingent = conditions. By being dependent on certain conditions, whatever the speaker is talking about that is contingent is subject to change.
The meaning is similar in real estate. A contingent offer is one that will result in a final sale only if certain conditions are met for the buyer. The offer has been accepted, but the final sale will not proceed until the conditions are met.
This term can be used in a variety of contexts. For instance, home inspection contingency allows the buyer a home inspection before finalizing the sale. That way, they can find any problems with the house and demand that they be fixed before closing. Appraisal contingency allows an evaluation of the fair-market price of the home, which could possibly be lower than the sale price. Loan contingency is the time allotted to acquire a loan before finalizing the sale.
Sometimes contingent offers allow the seller to continue to show the home and accept more bids as they attempt to meet these conditions. Often the seller must meet the contingencies by a deadline.
Especially if you are interested in buying or selling a home, you should be aware of such contingencies that may benefit you in the process. It could result in a fairer price and a better deal.
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