Contingent listings are a huge part of the housing market. They provide a low risk to sellers and allow buyers to find homes that may have been previously unlisted for other reasons. In this blog post, we will talk about how contingent listings work in the MLS system and which status means what in regard to houses being listed on the market. By understanding these concepts, you can be better prepared when searching for your next home!
What Does Contingent Mean
A contingent house listing means that an offer on a new home has been made and the seller has accepted it, but before the final sale can advance, some criteria need to be met. These contingencies are clauses in the sales contract which deal with matters such as appraisal, home inspection, and mortgage approval.
Contingent Statuses in the MLS Database
When a house is listed for sale, the property information gets uploaded to the Multiple Listing Service (MLS). The MLS is a real estate marketing and advertising company that helps buyers look for a home listed for sale online. The MLS might use different terminology when describing contingent statuses. These statuses include:
- Contingent - Continue to Show: When a home's status is contingent on continuing to show, the seller has accepted an offer, but there are contractual contingencies not yet met. Other buyers can still submit bids while this situation is being processed.
- Contingent - No Show: This translates to an offer being made on a property that is likely to close, and so the seller does not wish to show the property to potential buyers anymore.
- Contingent - With Kick-Out: The seller has accepted an offer in this scenario but with a few conditions. If the buyer cannot meet these requirements, they can end up being "kicked out" of their purchase agreement and allow someone else to take over.
- Contingent - With No Kick-Out: This means that there is no deadline for the buyer to meet their contingencies. Even if a higher offer is made, the seller cannot accept it.
- Short Sale Contingent: This occurs when a seller is willing to accept less than the amount still owed on the real estate property's mortgage. This status lets other agents know that the home is no longer for sale but does not mean that the deal has been approved.
- Contingent Probate: When someone dies, family members often hire a lawyer to deal with their estate. The lawyer usually has a contingency fee of about 25% of the estate's net value before taxes are paid to help cover the costs they incur during this process.
Buying a home can be one of the most important financial decisions you make in your lifetime. Whether it is for yourself or as an investment, understanding how MLS listings work and what the different contingency statuses mean in relation to buying a house will help you explore this process with more confidence. If you are considering purchasing property, contact us today!
