Can You Make an Offer on a Contingent House in Houston? A Complete Homebuyer Guide
Reviewed by Mark Lee
Can You Make an Offer on a Contingent House in Houston?
You’ve been scrolling through listings, finally stumble on a home you absolutely love… and then you see that dreaded label: Contingent.
Your heart sinks.
But should it?
Maybe you wonder:
“Can I still buy this house?”
“Can you make an offer on a contingent home in Houston?”
The good news: Yes, you usually can.
And in the Houston market—where neighborhoods like Spring Branch, Katy, Pearland, Cypress, and the Inner Loop move fast—it’s common for buyers to submit strong backup offers that end up getting accepted.
This guide breaks down everything Houston homebuyers need to know about contingent homes, including what “contingent” really means, your actual odds of getting the property, and how to structure the strongest backup offer possible.
What Does “Contingent” Mean on a Houston House Listing?
When a home is marked contingent, it means:
✔ The seller has accepted an offer
✔ The home is under contract
✔ The sale will only close if certain conditions (contingencies) are met
These contingencies protect both the buyer and the seller. Until those items are completed, the home isn’t officially “off the market”—and in Houston, sellers frequently accept backup offers to protect themselves if the current buyer’s deal falls apart.
Common Types of Contingencies in Houston Real Estate
Houston contracts generally follow the Texas Real Estate Commission (TREC) guidelines, which include common contingencies such as:
Home Inspection Contingency
The buyer has a specified time (often 5–10 days in Texas) to complete inspections. If the inspector finds major issues—foundation problems, roof issues, plumbing leaks, HVAC failures, etc.—the buyer can renegotiate or walk away.
This is especially important in Houston where older homes may have flood history or foundation movement from clay soil.
Appraisal Contingency
Lenders require the home to appraise at or above the purchase price. If it comes in low:
The buyer might need to increase their down payment
The seller may be asked to lower the price
The buyer can cancel without penalty
Appraisal issues are common in fast-appreciating Houston areas like The Heights, Montrose, and Sugar Land.
Financing Contingency
This protects buyers if their mortgage loan falls through.
Reasons this may happen in Houston include:
Recent job changes (very common with oil & gas industry relocations)
Credit shifts
Higher-than-expected insurance quotes (especially in flood zones)
Home Sale Contingency
This allows buyers time to sell their current home before closing on the new one.
Although less common in competitive Houston neighborhoods, many sellers still accept them depending on their urgency and market conditions.
Contingent vs. Pending: What’s the Difference?
You’ll see both terms used frequently on Houston listings, but they’re not the same.
Contingent
The sale is not final yet.
The buyer still has contingency hurdles to pass.
This stage is where backup offers are most effective.
Pending
All contingencies have been satisfied or waived.
The sale is close to final.
Backup offers are still technically allowed, but far less likely to be used.
Why Do Contingent Deals Fall Through in Houston?
Even in an active market like Houston, contingent offers collapse more often than people think.
Here are the most common reasons:
1. Financing Falls Through
This is especially common when insurance premiums jump or lenders tighten restrictions on flood zones.
2. Low Appraisal
Homes in competitive zip codes (77008, 77007, 77006, 77494, etc.) often rise faster than comparable sales, causing appraisal shortages.
3. Home Inspection Issues
Houston’s housing stock includes:
Older pier-and-beam homes
Homes with previous flooding
Properties with aging roofs and HVAC systems
All of these can lead to failed inspections and cancellations.
4. Buyer Fails to Sell Their Current Home
A common issue for suburban buyers moving inward to Houston or from Houston to surrounding metro areas.
5. Title Issues
Liens, divorce situations, estate matters, or unpaid taxes may stop the transaction.
Texas title companies are strict, and unresolved claims can derail a contract.
6. Life Happens
Job loss, medical emergencies, relocation changes, storms, and other surprises can cause buyers to cancel.
Can You Make an Offer on a Contingent House in Houston?
Yes—absolutely.
Sellers in Houston regularly accept backup offers.
Many listing agents even encourage it because:
Buyers frequently back out after inspection
Appraisal issues are common
Financing can collapse
The seller wants security
As the saying goes in Texas real estate:
“The house isn’t sold until the deed is recorded.”
Until closing day, anything can happen.
Possible Responses From a Houston Seller When You Submit an Offer
When you make an offer on a contingent home, the seller may:
1. Not Respond at All
If they’re confident their current buyer is solid.
2. Acknowledge Receipt Only
This means your offer is on standby as a backup.
3. Accept Your Offer as Backup #1
This is extremely common.
It means if the first deal falls apart, you automatically move into first place.
4. Accept Your Offer Immediately
This happens when:
Their current buyer looks shaky
Your offer is far stronger
You waive certain contingencies
You are offering faster closing or better terms
Pros and Cons of Making an Offer on a Contingent Home in Houston
Pros
You May Still Get the House
If the first deal falls through, you're next in line.
Reduced Competition
Most buyers overlook contingent homes.
Potential Negotiation Power
If the seller is worried about the current buyer, they may be more flexible.
Cons
You Might Wait Weeks Without Updates
Backup offers can take time to surface.
You Might Get Emotionally Invested in a House That Never Comes Available
Common issue among first-time buyers.
Potential Cost Holds
Rate locks can expire, or insurance quotes may change.
What Are Your Chances of Getting the House?
While exact statistics vary, U.S. data shows that about 5% of accepted offers fall through.
In Houston specifically, deals fall through most often due to:
Appraisal issues
Rising insurance costs
Foundation findings
Flood zone complications
Backup buyers get homes more often than people realize, especially in neighborhoods with older homes or aggressive pricing.
How to Strengthen Your Offer on a Contingent Houston Home
If you want to stand out as a backup buyer, consider:
Offer Strong Financing Terms
Higher earnest money
Larger option fee
Conventional financing over FHA/VA (if possible)
Shorter option period
Limit Contingencies
Sellers prefer clean offers.
Removing unnecessary contingencies boosts appeal.
Be Flexible on Closing Date
If you can match the seller’s preferred timeline, your chances increase.
Highlight Certainty
If you’re not relying on selling your own home, that’s a major advantage in Houston’s moving market.
Houston-Specific Scenarios Where Backup Offers Often Win
Backup buyers commonly win in situations involving:
Older homes in East End, Oak Forest, and Third Ward
Homes that recently flooded (buyers get nervous after inspection)
Overpriced homes in Memorial, Katy, or Sugar Land
Investment properties that don’t appraise
Homes requiring heavy repairs
Houston’s diverse housing stock makes contingent collapses more frequent compared to newer-construction markets.
FAQ: Making an Offer on a Contingent Home in Houston
1. How long can a house stay contingent in Houston?
Typically 15–45 days, depending on financing, inspections, and title.
2. Will a seller in Houston tell me if I’m backup #1?
Yes, if they formally accept your backup contract.
3. Does the original buyer know a backup offer was accepted?
Usually, yes. Agents are required to disclose material changes.
4. Can I walk away from a backup offer?
Yes—until it becomes the primary contract. Backup offers are not binding until activated.
5. Should investors make backup offers in Houston?
Absolutely. It’s common in areas like Acres Homes, Independence Heights, Sunnyside, and Pasadena where deals frequently fall apart due to repair findings.
Helpful External Resources
• How Contingencies Work in Texas Real Estate Contracts – Texas REALTORS®
https://www.texasrealestate.com
• Understanding the Appraisal Process – Consumer Financial Protection Bureau
https://www.consumerfinance.gov
Final Thoughts
Making an offer on a contingent home in Houston can be a smart strategy—especially in a competitive and fast-moving market. Homes under contract fall through more often than expected due to inspections, financing changes, appraisal issues, and title complications.
Submitting a backup offer:
✔ Costs nothing
✔ Puts you next in line
✔ Gives you a real shot at the home you want
Whether you’re buying in Houston’s Inner Loop, the suburbs, or up-and-coming areas, a strong agent can help structure a winning strategy and increase your chances of success.
How Absolute Properties Helps Houston Sellers
Absolute Properties makes it easy for Houston homeowners to sell fast - even when facing challenges like financial difficulties, inherited properties, troublesome tenants, or repairs.
As-is, fast cash offers with clear terms
Many closing costs covered; no realtor commissions in most cases
You choose the closing date (as little as 7 days, case-dependent)
Coordination with experienced title company for a compliant sale process
Call or text: (713) 230-8059
Email address: info@absolutepropertieshtx.com
Share your street address and timeline for a free consultation and a straightforward number no pressure.
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How To Sell Your House in Houston Without Sinking Any More Money Into It
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Who Pays Closing Costs in Texas
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What To Do With Your Expired Listing in Houston
Also check out our Free Guides & Education & FAQ for more education on how to sell your house for cash quickly to a local home buyer.
