What is a contingent sale?
When a buyer makes an offer on your home it’s likely contingent on a few things. Most commonly their ability to get financing and their comfort moving forward after inspections. But when an accepted offer is contingent on the buyers selling their home first, the status of the home for sale becomes “Active Contingent.”
Why is it “Active”?
Think of the term “active” as a reminder that you can still accept other offers. Your home is still actively being marketed to other buyers on all major home shopping websites and the MLS. If you get another offer you are free to accept it without complications in breaking the current offer contract.
Is this a good offer as a home seller?
It’s not as good as one without the contingency but it doesn’t mean it’s bad. It’s very common for people who are shopping for a new home to only afford to buy if they sell their existing house.
What makes an active contingent offer strong?
In short, it’s the likelihood the buyer will sell their home.
When our clients receive offers that are active contingent we look at the home that the buyers need to sell and evaluate how soon that could happen. We look specifically at how long it’s been on the market in light of the price and location. We’ll even speak with their agent to gauge current interest and the showing activity.
Other times the buyers will wait until they have their current home under contract to place an offer on yours. In that case, we gauge the strength of that contract as well.