As a real estate expert with a deep understanding of the industry, I can provide insights into the term "contingent" as it relates to the real estate marketplace, specifically on platforms like Redfin.

When a property is listed as contingent, it signifies that the seller has agreed to sell the property under certain conditions that must be met for the sale to proceed. These conditions are outlined in the Purchase and Sale Agreement (PSA) and are crucial to the buyer's ability to move forward with the purchase. The concept of contingency is designed to protect both parties in the transaction by ensuring that all necessary steps are taken before the deal is finalized.

On Redfin, a popular online real estate brokerage, there are several types of contingent statuses that a property may have. Here's a breakdown of what each might mean:


1. Contingent on Inspection: This status indicates that the buyer has agreed to purchase the property but wants to conduct a thorough inspection first. The buyer has the right to back out of the deal if significant issues are discovered during the inspection.


2. Contingent on Financing: The buyer is dependent on securing a mortgage to complete the purchase. If the buyer cannot obtain the necessary financing, the deal may fall through.


3. Contingent on Sale of Buyer's Home: The buyer needs to sell their current home before they can proceed with the purchase. This is a common scenario and can add complexity to the transaction timeline.


4. Contingent on Appraisal: The buyer's financing may be contingent on the property appraising for a certain value. If the appraisal comes in lower than expected, it could affect the buyer's ability to secure a loan.


5. Contingent on Contract: The buyer may have agreed to purchase the home but has additional conditions that must be met before the contract is fully executed.


6. Contingent on Permits or Approvals: If the property requires certain permits or approvals from local authorities, the sale may be contingent on obtaining these before it can proceed.

7.
Contingent on Probate: In cases where the property is part of an estate, the sale may be contingent on the probate process being completed.

8.
Contingent on Other: This is a catch-all category for other conditions that might not fit neatly into the above categories.

It's important to note that a contingent listing is not a done deal. It is a conditional agreement that can still result in the property not being sold if the contingencies are not met. For buyers, understanding the type of contingency can help them gauge the likelihood of the sale going through and plan accordingly. For sellers, it's crucial to be aware of the contingencies to manage expectations and potentially negotiate better terms.

In the dynamic world of real estate, the status of a property can change rapidly. Redfin and other platforms provide real-time updates to keep all parties informed. As an expert, I recommend that buyers and sellers work closely with their real estate agents to navigate the complexities of contingent listings and to ensure a smooth transaction process.

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Definition of Contingent. When a home is listed as contingent, it means the seller has accepted an offer but the deal is contingent on a home inspection, loan approval, or other contingency contained in the Purchase and Sale Agreement. On Redfin, there are different types of contingent statuses.read more >>