What Does Contingent Mean?

What does it mean when a house status is listed as “contingent”? Well, this means that the house is already under contract. In real estate, when a house is listed as contingent, it means that an offer has been made and accepted, but before the deal is complete, some additional criteria must be met. Basically, the home is under contract, but has not been closed on yet.

So are homes that are contingent worth looking at as a buyer? Most likely not. When you’re looking at homes online and see that they are marked as contingent, you may want to keep scrolling! Look at active homes. Listen to my take on houses under contingency in this video, “What Does Contingent Mean?”:

There are some homes that may be under contract that you still might consider looking at as a buyer. These homes are listed as “active break clause” So let’s talk more about these houses in the next section. 

What Does Active Break Clause Mean?

So now you know to skip all of those homes listed as contingent when you’re searching for a new home. Contingent homes generally don’t fall through and aren’t worth your time. However, if you come across a home that you’re interested in and it’s marked “active break clause”, you may have a chance!

An active break clause is a clause in a contract that allows the person to end the contract early. So the home is under contract, however the buyer of the home has a contingency attached. This usually means that the buyer has a home to sell first before they can actually purchase the home.

The active break clause allows the seller to still show the property and even negotiate other offers that come in. So make sure you’re still looking at homes that show an active break clause (ABC beside the home) as that home may still be the perfect home you can get!

More Common Questions about Buying A Home

As you probably already know there is a lot to the homebuying process. If you have more questions about buying or building a house, don’t worry! We have a list of common questions that homebuyers have HERE

If you don’t see your question on this list, then please reach out! I would love to answer all of your buying questions. 

Want more information? Download my Homebuyers Guide: Homebuyers Guide

If you’re a first time home buyer, download this Buyers Guide: First Time Homebuyers Guide 

Need More Information About Buying a House in Birmingham, AL?

Wow! Now you should understand what homes listed as contingent and active break clause mean! The real estate world can be hard to understand since there’s so much to know! If you are going through the process of buying a home, then you may have more questions and you need a knowledgeable real estate agent by your side to help you! If you’re looking to buy or build a home in the Greater Birmingham, Alabama area, contact me and let me help you. If you’re new to the Birmingham area or looking to relocate to Birmingham, Alabama, please feel reach out to Dianna Howell with The Howell Group: 205-568-5435 or dianna.howell@kw.com 

For information on Pelham, Alabama or Birmingham in general, contact real estate agent Dianna Howell, a top buyers agent in the Birmingham, Alabama area. 

Visit our website for more information on the Birmingham area: https://diannahowellrealtor.com/category/lifestyle/ 

🔑🏡 Want to learn more about the buying process? Then read this article for 6️⃣ easy tips: Six tips to Buying a Home 

📕 Read more about the Birmingham area in this post: Relocating to Birmingham, Alabama

I have plenty of resources and information to provide including my expert help. Call me today and let’s get started on the search for your new home, whether you want to buy or build! 


Dianna Howell

The Howell Group of Keller Williams in the Birmingham Alabama area

Top Birmingham Real Estate Agent