If you’ve surfed websites where houses are listed, you can affirm the fact that houses are not tagged “for sale” online; rather, they are given tags such as “contingent” “pending listing,”. Some others go as far as adding more details such as “contingent – continue to show,” “Contingent—No Show/Without Kick-out,” “Contingent—Release/Kick-out,” “Pending—Taking Back-ups,” “Pending—Release/Continue to
If you’ve surfed websites where houses are listed, you can affirm the fact that houses are not tagged “for sale” online; rather, they are given tags such as “contingent” “pending listing,”.
Some others go as far as adding more details such as “contingent – continue to show,” “Contingent—No Show/Without Kick-out,” “Contingent—Release/Kick-out,” “Pending—Taking Back-ups,” “Pending—Release/Continue to Show” etc.
As real estate wholesalers, we have been asked repeatedly what these tags mean, and we have always answered comprehensively. We have, however, decided to make this known, so you have a good understanding of these terms as you get your desired house.
Contingent listings are active listings that have certain clauses attached to them. This means the house is available; the sale can be made; however, certain conditions have to be met before the sale can go through.
Pending listings are sales that are almost sealed as conditions for the sales are met. When a house moves to the pending status, it means that all contingencies have been met or have been waived by either the buyer or the seller. At this point, the only thing delaying the sale would be the paper works and other necessary documents.
Things to know about Contingencies
Contingencies can come up as Financial contingency (the buyer was unable to secure a mortgage or loan), Appraisal contingency (the value of the house is lesser than the price), Inspection contingency (the house has issues that need to be addressed), Title contingency (the identity of the real owner of the house is not known) etc.
With the basic meaning of these terms known, one of the primary questions would be what to do when you see these tags. Here are few tips to go around contingent and pending listings.
Employ the service of a Real Estate wholesaler
It is challenging to fully ascertain the current status of a sale deal as the tags mean different things. An easy way around this is by employing a real estate expert who can help act as a middleman in this situation. The realtor would communicate with the other party’s agent to know the status and the way forward hence making decision making easier.
Present a strong offer
This is an effective way to bypass the tags put on the listings. This involves presenting an offer that is way at or above the asking price, so the seller is motivated to accept the deal. This is effective in increasing your chances of getting the deal.
Write a back-up offer letter.
There are lots of listings and deals in the real estate market, and as such, there are lots of contingencies. This can be used to your advantage. When a listing is contingent, it means an offer has been accepted; however, the seller can still consider another offer from someone else. This is where you come in.
What you will do in this case is to write the seller a back-up offer letter (if you don’t know how to, you can consult the assistance of a real estate wholesaler) without contingencies. This allows the seller to consider and accept your offer readily as a back-up offer. So, in any case where the first offer does not Fall through, your offer is considered.