Are you out of luck if a house listing is marked with one of these words? Here’s what you need to know about contingent and pending homes. Show
photo: istockphoto.com The terms “contingent” and “pending” are often used to describe real estate transactions. But what does it mean when a home is listed in these ways? Both terms are different ways of saying that a deal is not yet complete. There are major differences, however, when comparing pending vs. contingent home sales. This article will provide answers to two common questions: what does “pending” mean in real estate lingo? And what does “contingent” mean? What does “contingent” mean in real estate?The word “contingent” means “dependent upon something else” or “dependent on conditions.” Common in most real estate deals, contingencies are put in place to protect both the buyer and seller as they enter into a contract; they are conditions that must be met before a contract becomes valid. The buyer has the option to back out of a sale if their contingencies aren’t met. Common Real Estate ContingenciesThese are some of the most common real estate contingencies:
RELATED: The Best Real Estate Websites for Finding Your Next Home Photo: istockphoto.com What does “pending” mean in real estate?What does “pending” mean? If a home is listed as “pending,” it means that all details have been worked out and both parties have agreed to proceed with the sale. All contingencies have been satisfied and all documents prepared for signing by both parties. It is essentially one step past “contingent” along the path to a sale. Common Types of Pending SalesThese are some of the most common types of pending sales:
depositphotos.com RELATED: What Is a Pocket Listing in Real Estate? Can a potential buyer make an offer on a contingent home?Yes, potential buyers can still make offers on contingent homes if the sellers—and their real estate agents—are still accepting backup offers. It’s best for buyers not to get their hopes up when putting an offer on a contingent home because the likelihood is that the initial sale will go through. Buyers who sumit contingent offers should make sure that their bids are competitive—after all, the sellers may be accepting multiple bids while their sale is still contingent, and you want yours to stand out. Many buyers choose to make offers without contingencies (they’ll waive inspection, for example) in order to make their offer more attractive. Can a potential buyer make an offer on a pending home?While there’s no rule against making an offer on a pending home, it’s unlikely that a pending sale will fail to go through, since all of the contingencies have been met and the buyer and seller are in the final stages of their sale agreement. If a seller is accepting backup offers, however, there’s no harm in submitting one–again, just don’t get your hopes up. Can a seller sell to a different buyer when their property is contingent or pending?Generally speaking, a seller cannot back out of a deal once their property is contingent or pending. This is difficult for sellers who receive a better offer after having already accepted an earlier one. Once a contract has been signed, buyers have more power to walk away from the deal than the sellers do. Sellers risk being sued by the buyer if they back out of a contract once it has been signed. RELATED: 7 Signs You’re About to Buy the Wrong House Is it better to be contingent or pending?Is pending or contingent better? If a property is listed as contingent, the sellers has accepted the offer, but there are certain contingencies that need to be met, so the property is still active. If a property is listed as pending, however, the contingencies have been met and the sale is being processed.
Does pending happen before contingent?While contingencies are conditions that must be met for the sale to go through, pending is used to identify a listing where all contingencies have been met and the transaction is nearing the closing process. This still does not mean that the sale is final.
Can you make offer on pending House?If you're house hunting and the property you had hoped to make an offer on just went pending on the local MLS, can you still make an offer? Typically the listing agent no longer accepts offers once the property is listed as pending sale, so you won't be able to place your bid.
Can a seller back out of a contingent offer?Legally, a seller's best bet for successfully backing out of a sale is if a contingency written into the contract has not been met. For example, say a contingency is explicitly included in the contract that the seller be able to secure a new home, and then he or she is unable to do so.
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