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What does contingent on house sale mean

What Does "Contingent on House Sale" Mean in Real Estate?

Buying and selling a house can be a complex process, often involving numerous legal and financial considerations. One term that frequently arises during these transactions is "contingent on house sale." This phrase can be confusing for both buyers and sellers, as it implies that the completion of a sale is dependent on another property being sold. In this review, we will delve into the meaning of "contingent on house sale" in the context of the US real estate market, providing expert and informative insights while maintaining an easy-to-understand writing style.

When a buyer makes an offer on a property, they may include a contingency clause stating that the purchase is contingent on the sale of their current home. In other words, the buyer will only proceed with the purchase if and when they successfully sell their existing property. This contingency is often used when the buyer needs the proceeds from the sale of their current home to finance the purchase of their new one.

For instance, let's consider a hypothetical scenario where a couple decides to upgrade to a larger home. They find a property they love and submit an offer, contingent on the sale of their current house. If another buyer comes along and makes a non-contingent offer,

If you're interested in a property that's listed with an active contingent status, you may still be able to make an offer. While the initial offer will take precedence if all the contingencies are satisfied, making an offer can put you at the head of the line if the original deal falls through.

Is it worth looking at a house that is contingent?

Owners whose home is in contingent status can accept a backup offer, and that offer will have precedence if the initial deal does not go through, so if you like a contingent property, it makes sense for you to make an offer on the listing so that you are in position to buy if something goes wrong with that transaction.


Is it better to be contingent or pending?

If a home is listed as pending, all contingencies have been met and the sale is further down the closing path, with most of the paperwork in place — but the transaction has not yet been completed. You are more likely to be successful making an offer on a contingent home than a pending one.

Can a seller accept another offer while contingent?

Contingency with a kick-out clause

That means the seller can continue to show the home and accept offers during the sale contingency period. If the seller gets a better offer, they'll allow the original buyer 72 hours to drop the sale contingency and proceed with the deal.


How long does a contingent offer last?

30 to 60 days

The contingent period usually lasts anywhere from 30 to 60 days. If you have a mortgage contingency, the buyer's due date is usually about a week before closing. Overall, a home stays in contingent status for the specified period or until the contingencies are met and the buyer closes on their new house.

How much does the Texas real estate exam cost?

Cost #2: Exam Fee: $43 per attempt

Once your coursework is complete, you can apply to take your TREC real estate exam and get your real estate license. The current exam fee for the sales agent license is $43 per attempt.

How long is real estate school in Mississippi?

60-hour

You must complete the 60-hour course, Real Estate 101, and pass the State Exam. As a salesperson you must work under a broker or real estate company. If you have ever been convicted of a felony you must appeal to the Mississippi Real Estate Commission for permission to become licensed.

Frequently Asked Questions

How much does it cost to get a license in Texas?

Driver License Fees:

License type *Fee Information
Driver license (Class A, B or C)
Under 18: new $16 Expires on your 18th birthday
Age 18 to 84: new $33 Expires after eight years (on your birthday)
Age 18 to 84: renewal $33 Expires eight years after previous expiration date

How much does it cost to become a real estate agent in California?

California state fees to become a real estate salesperson include a $60 exam fee and $245 licensing fee. Other costs include Pre-Licensing course tuition, which can range anywhere from $125 up to $700 depending on the package and the provider.

Is becoming a realtor worth it in Texas?

A commission-based field like real estate directly ties your compensation to the amount of work you take on. For a lot of people, that control is very exciting and motivating. There really is no limit to how much you can make, with enough hard work (and a little bit of luck).

How much is Michigan real estate license?

Sample Michigan Real Estate License Costs

Prelicensing Classes (40 Hours) $206 (through Colibri Real Estate)
License Application $88
Exam Registration $79
Total Cost $373

May 1, 2023

FAQ

How much is it to get your real estate license in California?
How Much Does It Cost To Get A California Real Estate License?

Course Tuition $100 - $400+
Background Check $40
Salesperson License Fee $245
Examination Fee $60
Total $445 - $745
How much does it cost to become a real estate agent in Utah?
Sample Utah Real Estate License Costs

Prelicensing classes (120 hours) $399-$955
Exam registration $59
Fingerprinting $12
License application $157
Total Cost $627-$1,183

Aug 15, 2023

How hard is California real estate exam?
The difficulty of the real estate exam varies by state, but the California real estate exam is known to be one of the most difficult. In fact, the pass rate for the California real estate exam in the last two years was under 50%, which means it's incredibly competitive and difficult to pass.
How much is it to get a real estate license in California?
How Much Does It Cost To Get A California Real Estate License?

Course Tuition $100 - $400+
Background Check $40
Salesperson License Fee $245
Examination Fee $60
Total $445 - $745

What does contingent on house sale mean

How much does AZ real estate exam cost? $75

The fee for an Arizona real estate salesperson license examination is $75, and the fee for a first-time license is an additional $60 (Original License Fee is $50; the Real Estate Recovery Fund Fee is $10). The Arizona real estate exam has two parts: general real estate knowledge and Arizona-specific knowledge.

Do realtors make good money in Michigan? On average, real estate agents make $84,459 per year according to salaries reported by Indeed users. Was this answer helpful?
How much is it to get real estate license in California? How Much Does It Cost To Get A California Real Estate License?

Course Tuition $100 - $400+
Background Check $40
Salesperson License Fee $245
Examination Fee $60
Total $445 - $745
How much is a real estate license in NY? How Much Does It Cost to Get a Real Estate License in New York? Becoming a real estate professional in New York isn't prohibitively expensive. When all is said and done, an aspiring agent will spend around $500 to $1,000 to get their license, while a broker can expect to pay around $950 to $1,450.
  • How much is the real estate exam in VA?
    • A $60

      You'll need to pay a $60 fee every time you sit for the Virginia Real Estate Exam. With the right planning and preparation, you should only need to take the test once, but keep in mind that the results are only good for one year.

  • How often do contingent offers fall through?
    • Among contingent offers, less than five percent fall through, according to multiple sources. Broken offers may arise because the buyer isn't able to secure financing or because the seller isn't willing to lower their listing price after a low appraisal.
  • Why don't sellers like contingent offers?
    • Contingent offers provide protection to buyers. But there are risks involved, especially for sellers. Because contingent offers require some other event to take place – such as an appraisal of a home for a certain amount or a home inspector giving a residence a passing grade – they can fall through.

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