What does "Contingent Offer" imply in real estate?

A "Contingent Offer" in real estate refers to an offer that is dependent on certain conditions being met before the transaction can proceed. This means that while the buyer's offer may be accepted by the seller, the completion of the sale is not guaranteed until these specified conditions are fulfilled. For example, common contingencies in real estate transactions may include the buyer securing financing, the sale of the buyer's current home, or a satisfactory home inspection.

In essence, the presence of contingencies protects both buyers and sellers by allowing parties to back out of the deal without penalties if specific conditions are not satisfied. This creates a more flexible framework for negotiations and protects the interests of those involved in the transaction.