Don't Be Confused: What 'Contingent' Means for Property in Hawaii
When navigating Hawaii’s real estate market, it’s common to encounter the term “contingent” on property listings. You may see this on Zillow, or even the list of properties that your Realtor sends you. Understanding what this status means is crucial whether you’re buying or selling a home in Hawaii. A contingent status can affect your options, timelines, and even the final sale. Let’s break down what contingent means and how it plays a role in Hawaii’s unique real estate landscape.
What Does 'Contingent' Mean in Real Estate?
n real estate, a property is listed as “contingent” when an offer has been accepted by the seller, but the sale is not final until certain conditions, or contingencies, are met. These contingencies often include:
- Financing: The buyer must secure a mortgage or another form of financing.
- Inspection: The property must pass a home inspection without major issues.
- Appraisal: The property’s appraised value must match or exceed the agreed purchase price.
Each of these conditions gives either the buyer or seller an exit strategy if the terms aren’t satisfied.
Hawaii-Specific Contingencies
Hawaii’s real estate market brings its own set of unique challenges and contingencies. Given the island’s regulatory environment and natural features, additional contingencies often apply. These might include:
- Coastal property regulations: Homes near the coastline often have special zoning and building restrictions.
- Cultural land use laws: Certain properties in Hawaii may be subject to cultural preservation requirements or restrictions due to their historical significance.
These Hawaii-specific contingencies add another layer of complexity to property transactions and must be considered when reviewing a contingent property.
Types of Contingent Properties
In Hawaii, you might encounter different types of contingent property listings, such as:
- Contingent – Show: The seller is still showing the property and accepting backup offers, in case the current deal falls through.
- Contingent – No Show: The seller has stopped showing the property, and the deal is expected to close.
These statuses influence your ability to make an offer. For buyers, a “contingent – show” status signals an opportunity to submit a backup offer. For sellers, it provides flexibility in case the first offer doesn’t work out.
How Contingent Status Impacts Buyers and Sellers in Hawaii
For buyers, a contingent property can seem like a roadblock, but it doesn’t mean the deal is dead. Buyers should:
- Monitor the property’s status: Contingent deals can fall through, especially if financing or inspection issues arise.
- Submit a backup offer: In case the original deal fails, your offer could be next in line.
For sellers, a contingent offer can be both a blessing and a burden. It shows that someone is interested in your property, but it also means waiting for all contingencies to clear. Sellers should:
- Ensure contingencies are met quickly: Especially in Hawaii’s competitive market, sellers must work to move the process along.
- Consider backup offers: This can offer a safety net if the first offer falls through.
Moving Forward: What to Do if Your Dream Property Is Contingent
If you’ve found your ideal home but it’s listed as contingent, don’t lose hope! Here are a few tips:
- Act quickly: Keep an eye on the property’s status and be ready to act if it becomes available.
- Work with a local expert: A real estate agent with knowledge of Hawaii’s market can help you navigate the complexities of contingent listings.
- Prepare a backup offer: Make your intentions known, and prepare a strong offer in case the initial deal doesn’t close.
In Hawaii’s competitive real estate market, understanding contingent status is key to making informed decisions, whether you’re a buyer or a seller. A property sale may hinge on contingencies, and being prepared can make all the difference. Whether it’s coastal regulations or cultural land use, Hawaii’s unique landscape adds extra layers of considerations to any real estate deal.
For personalized advice and guidance through the contingent property process, The Papakea Collection Real Estate Team is here to help. Reach out today to navigate Hawaii’s real estate market with confidence!
About the Author
James T. morrison, R(S)
James is local realtor who has lived on Big Isand his entire life. He is proud to be Realtor and works his hardest to please his clients.
He is a proud memeber of the Papakea Collection along side his partner, Julie Armstrong.
