What does contingent mean in home buying?

-Rose

“Contingent”means any term in the purchase agreement that must be met or satisfied for the purchase to be completed. Typical contingencies include financing (the mortgage must be approved), inspection, and the sale of the buyer’s home.

If the contingency is the latter, the sale will only move forward once the buyer’s home has sold. Depending upon your part of the country, this contingency may or may not be generally accepted. The fewer contingencies in a purchase agreement, the stronger the offer. When you make an offer, think about how the seller will view it. Especially if you are in a competitive bidding situation, be sure to put your best foot forward. Your REALTOR® will be the expert to guide you in best positioning your offer.

Diane Brooks is a REALTOR® for F.C. Tucker Company in Zionsville, Indiana.