In real estate, you may come across terms like contingent and pending when browsing listings. These terms have distinct meanings and are critical for understanding the status of a property transaction. In this post, we’ll compare contingent vs pending statuses and explain how each one impacts the buying and selling process.
Key Differences Between Contingent and Pending Offers
The biggest difference between contingent and pending offers lies in the status of the property under contract.
Contingent means that the seller has accepted the buyer’s offer, but certain conditions need to be met for the sale to proceed. These conditions could include financing approval, a home inspection, or an appraisal.
Pending means that the contingencies have been satisfied, and the sale is almost ready to close. At this point, the buyer and seller have agreed on the terms, and there are no further conditions to be met. The property is considered almost sold.
It’s important to note that while a contingent property could still be affected by unresolved conditions, a pending listing indicates that the sale is in its final stages and typically can’t be undone unless unforeseen issues arise.
The Impact of Pending Status on Real Estate Transactions
When a property status is listed as pending, it means that the buyer and seller have gone through the necessary steps, including inspections and financing approvals, and are preparing for the final transaction. For potential buyers, this status usually means there is very little chance to negotiate or make an offer unless something goes wrong.
For sellers, pending status shows that they have reached the final stages of the transaction. At this point, the property is essentially off the market, and it’s a matter of time before the transaction is completed.
When to Proceed with a Contingent Property vs a Pending Property
If you're in the market for a home, knowing when to proceed with a contingent property versus a pending property can help you make an informed decision. Here’s a simple guide:
Contingent Property: If you find a property that’s contingent, don’t lose hope. You can make a backup offer, and if the primary deal falls through, your offer may be accepted.
Pending Property: A pending property is as close to closing as you can get. If you’re interested in a pending property, you may have missed the opportunity to buy it unless there’s an unexpected issue.
Key Takeaways:
Contingent properties still have conditions to be met before closing, while pending properties are in the final stages with no remaining conditions.
Pending properties are essentially off the market, but contingent properties can still allow for backup offers.
Understanding the difference helps buyers know whether they can still make an offer on a property.