Contingent vs Pending in Real Estate:
Everything You Need to Know
What Does Contingent Mean in Real Estate?
If you see a house posted and marked as contingent, this means that the seller has accepted an offer, but that the closing of the house is dependent upon certain conditions that the parties need to meet before the sale is finalized.
If all of these contingencies are met, then the property will be listed as pending until the date of closing. Sometimes, the contingencies are unable to be met, in which case the sale will likely fall through and the property will be put back on the market.
What Are The Types of Contingencies?
There are several different types of contingencies that might cause a sale to fall through if they are not completed. A financial contingency or loan contingency means that the buyer still has to be approved by the lender before proceeding with the sale.
An appraisal contingency ensures that the buyer can back out of the sale if the home is worth less than their accepted offer. An inspection contingency protects the buyer if there are severe issues with the home. There are many different types of contingencies you might come across in real estate.
What Does Pending Mean in Real Estate?
If a property is marked as pending, this means that the seller has accepted an offer, and either there were no contingencies, or all of the contingencies have been addressed. When a property is pending, both parties are in the process of completing legal work to finalize the sale of the home. A property might switch directly from being for sale to being pending if there were no contingencies, or there might be a period in which a property is marked as contingent before it is pending.
What Is The Difference Between Contingent vs Pending?
A house that is contingent has certain criteria that must be met before it can be considered pending. A house that is pending does not have any contingencies and are not active listings, but still have legal paperwork to process and complete before the house is officially sold.
If a property is marked as pending, this means that the seller has accepted an offer, and either there were no contingencies, or all of the contingencies have been addressed. When a property is pending, both parties are in the process of completing legal work to finalize the sale of the home. A property might switch directly from being for sale to being pending if there were no contingencies, or there might be a period in which a property is marked as contingent before it is pending.
What Is The Difference Between Contingent vs Pending?
A house that is contingent has certain criteria that must be met before it can be considered pending. A house that is pending does not have any contingencies and are not active listings, but still have legal paperwork to process and complete before the house is officially sold.
Conclusion
A property that is marked as contingent has certain conditions that the buyer or seller must meet before the deal can close, such as an appraisal contingency, loan contingency, or inspection contingency. A property that is marked as pending does not have any contingencies and is finalizing the legal process of escrow.
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