What Does "Active Contingent" Mean for Real Estate Investors?

Real estate investing, especially lead generation, can be full of unique terms that can confuse even experienced investors.

That's why I wanted to take the time to explain a term that other real estate investors have struggled with: active contingent.

Is it active?

Or is it contingent?

It's both!

Confusing, I know.

Let's break down what it is and what it means for your lead generation and your real estate business as a whole.

What is Active Contingent?

Active contingent is a term used to describe a property that has an accepted offer, but the sale is still contingent upon certain conditions being met.

Make sense?

These conditions, known as contingencies, can include securing financing, completing inspections, and satisfying any necessary repairs.

While in the active contingent status, the property remains on the market ... this is important to keep in mind ... and may still accept backup offers, which is good news if you're interested in the property.

However, the initial offer holds the primary position, and if all contingencies are met, the property moves to the next stage of the selling process.

Pros and Cons of Pursuing Active Contingent Listings

When considering active contingent listings, it's essential for you as a buyer to think about the pros and cons of its status.

On the positive side, you as a buyer may still have the opportunity to secure the property.

Plus, active contingent properties may be more motivated to negotiate, resulting in a better deal for you.

However, there's also the risk of investing time and effort into a property that may ultimately be sold to the initial buyer.

The Bottom Line: Active Contingent

There you have it: active contingent. If you come across the real estate investment you've been looking for and it has active contingent status, it's not too late.

Put in your best offer.

But, from my personal experience, don't spend all your time and energy waiting for this property, because you will be in second or third buying position for it.

Instead, put your offer in, and focus your time and energy on other powerful and proven real estate lead generation strategies.

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