What is a contingent offer in real estate?

A contingent offer in real estate refers to an agreement that is dependent on certain specified conditions being satisfied before the transaction can proceed. This means that the offer is not final until those conditions are met, which could include scenarios like the buyer securing financing, the home passing an inspection, or the sale of the buyer's current home. The inclusion of contingencies provides a layer of protection for the buyer, allowing them to withdraw from the agreement without penalties if the conditions are not fulfilled.

This definition separates contingent offers from unconditional offers, which can be executed without any conditions. It also clarifies that while financing approval may be one aspect of a contingent offer, it does not guarantee financing itself—it merely means the offer is contingent upon achieving that financing. Finally, warranties on the home do not directly impact the nature of a contingent offer, as these serve as assurances on the property's condition, not conditions for the offer itself.