Understanding the Difference Between Under Contract and Contingent Home Sales

When a home is under contract, it means a buyer and seller have agreed on the terms of the sale, and the sale is moving forward. The contract is binding, and the buyer has typically made a non-refundable deposit.

In most cases, a sale is considered under contract once a buyer and seller have signed a purchase agreement. This agreement outlines the terms of the sale, including the price, closing date, and any contingencies.

A contingent sale, on the other hand, means the sale is dependent on certain conditions being met. These conditions can include things like the sale of the buyer's current home or the buyer's ability to secure financing. A sale can be contingent on multiple factors.

In real estate, a contingent status means that a property is under contract, but some conditions haven't been met yet. This could be due to financing, inspection reports, or the buyer needing to sell their current home.

A contingent contract is a type of agreement that requires certain conditions to be met before the sale can proceed. This might include the buyer selling their own home or the seller completing specific work on the property.

The most common perception of a property when it's contingent is that the buyer needs to sell their current home to purchase the new one. However, in the Louisville market, this might not be the case, and the status change might not be reflected in public remarks.

A home sale contingency is a condition in a real estate contract that allows a buyer to make an offer on a new property, contingent upon selling their current home within a specified time frame. If the buyer can't sell their current home within that time, they can cancel the purchase contract without penalties.

A home inspection contingency typically specifies a time frame within which the buyer has to hire professional inspectors to assess the property's condition. If any significant issues or defects are discovered, the buyer may have the option to negotiate repairs or request a reduction in the purchase price.

Here are some common contingencies found in real estate contracts:

These contingencies are placed in property agreements to protect the buyer and the seller, and to ensure that the sale is completed as planned.

You can make a formal offer on any home that's listed, regardless of its status. Buyers can submit offers even if a property is already under contract.

If a buyer's initial offer is unsuccessful, they may still be able to submit a backup offer on an active under contract listing. This can give them a chance to become the primary buyer if the original contract falls through.

Consult with your real estate agent or attorney before submitting a backup offer. They can help you navigate the process and ensure you understand the risks and benefits.

The seller's preferences will also come into play when considering a backup offer. They may choose to accept the new offer or stick with the original contract.

In some cases, contracts can fall through, and a backup offer can increase a buyer's chances of becoming the primary buyer.

Real estate contingencies are a crucial part of the home buying and selling process. A contingent contract means that some conditions haven't yet been met, and both parties have not agreed to move forward with executing the deal as planned.

A common contingency in real estate is the home inspection contingency, which typically specifies a time frame within which the buyer has to hire professional inspectors to assess the property's condition. If any significant issues or defects are discovered during the home inspection, the buyer may have the option to negotiate repairs, request a reduction in the purchase price, or even withdraw from the contract without any penalties.

Some other common contingencies include appraisal contingencies, which require a licensed appraiser to assess the value of the property, and financing contingencies, which set a specific period of time during which the buyer must secure a mortgage or other form of financing. If the buyer can't obtain the necessary financing within the specified time frame, they can terminate the contract without penalties.

Here are some of the most common contingencies in real estate:

These contingencies are essential to protect both the buyer and the seller in the property agreement. They allow parties to terminate the agreement if one of them breaches the contract by not meeting a specific requirement.

A contingent contract means that some condition hasn't yet been met, and both parties have not agreed to move forward with executing the deal as planned. This could be because of financing, inspection reports coming back unacceptably high, or if the offer depends on the buyer selling their home or the seller buying a new one.

Most transactions will have some sort of contingency, and two common ones are inspections and financing. However, the most common perception of a property when it is contingent is that the Buyer has to sell their current home in order to purchase the new home.

A home sale contingency is a condition in a real estate contract that allows a buyer to make an offer on a new property, contingent upon selling their current home within a specified time frame. If the buyer cannot sell their current home within that time, they can cancel the purchase contract without penalties.

Financing contingencies typically set a specific period of time during which the buyer must secure a mortgage or other form of financing. If the buyer can’t obtain the necessary financing within the specified time frame, they can terminate the contract without penalties.

Here are some common contingencies in real estate:

These contingencies are placed in property agreements to indicate that conditions must be met before a sale can be completed. They allow parties to terminate the agreement if one of them breaches the contract by not meeting a specific requirement.

A home inspection contingency typically specifies a time frame within which the buyer has to hire professional inspectors to assess the property’s condition. If any significant issues or defects are discovered during the home inspection, the buyer may have the option to negotiate repairs, request a reduction in the purchase price, or even withdraw from the contract without any penalties.

The appraiser compares the features of the house with other properties in the area to ensure that the selling price aligns with the market value. In the event that the value comes in under the listed purchase price, the buyer may choose to back out of the sale without incurring penalties, or renegotiate terms in order to proceed with the sale.

A kick-out contingency is a clause that allows a seller to consider a new offer if a more favorable one comes in. This can give the seller more flexibility in the sale of their property.

If a seller includes a kick-out contingency in their listing, they can "kick out" the current buyer and give them a chance to match the terms or remove contingencies within a specified time frame. This time frame is usually specified in the contract.

If the initial buyer fails to match the terms or remove the contingencies within the specified time frame, the seller can proceed with the new offer. The seller can then negotiate with the new buyer and potentially accept their offer.

A contingent listing is a status that can be confusing, but it's actually quite simple once you understand it. It means that a property is under contract, but some conditions still need to be met before the sale can be finalized.

In the Louisville market, a contingent contract is usually not reflected in the public remarks, but it may be mentioned in the agent notes.

Most transactions have some sort of contingency, such as inspections or financing. However, the most common perception of a property when it's contingent is that the buyer has to sell their current home to purchase the new one.

A contingent contract can include conditions such as the buyer selling their current home, the seller buying a new home, or the buyer successfully selling their current home.

The key difference between "active under contract" and "pending" listings is that "active under contract" means some contingencies must be settled before a sale can be made, while "pending" indicates that sale closure is imminent.

Here are some common contingencies found in real estate listings:

A contingent under contract status means that a property has an offer accepted by the seller, but there are still some requirements that need to be met to conclude the sale.

In real estate, you'll often see properties listed as "Under Contract" or "Contingent." But what do these terms mean?

Under Contract means there's a signed contract between a seller and buyer, with agreed-upon terms for the sale of the property.

The Under Contract stage doesn't include the sale closure, and there may be requirements that still need to be met before the sale is finalized. Conditions that could be pending include inspections and financing.

A Contingent property typically means the buyer has a contingency contract in place, often requiring them to sell their current home before purchasing the new one.

In the Louisville market, a Contingent status may not be explicitly mentioned in public remarks, but will be noted in agent notes with details on the contingency contract.

The Under Contract and Contingent statuses can sometimes be listed as the same thing, even though they have different meanings. This can lead to confusion, especially when searching for properties online.

A property listed as Under Contract is off the market and won't accept other purchase offers, whereas a Contingent property may still be open to other offers if the contingency is not met.

It's essential to understand these terms to navigate the real estate market effectively.