Have you ever wondered about the differences between contingent and pending?
Contingent and pending are similar terms that are often confused. However, when you know their differences, it’s easy to choose the right term for your scenario.
For a realtor, it is important to keep a few words in mind as each word has a specific meaning that is different from one another. If you are not sure of the difference between the two, then you have come to the right place.
Read on to learn the difference between contingent vs pending real estate listings.
Level of Commitment From the Buyers
The main difference between contingent and pending is the level of commitment from the buyers.
A contingent offer means the offer is contingent on something, typically the sale of the buyer’s home. The buyers are not as committed as they would be if the sale was pending. This is because the sale is not guaranteed to go through and the buyers may back out at any time.
A pending offer means the offer has been accepted by the seller and is pending the completion of the sale. The buyers are much more committed as they have already gone through the inspection process and are just waiting to close on the property.
Conditions
A contingent offer is one in which the sale is contingent on certain conditions being met. For example, the sale may be contingent on the buyer being approved for a mortgage or the home passing an inspection.
A pending offer, on the other hand, means that all conditions have been met and the sale is just waiting to be finalized. In most cases, a contingent offer will become pending once all conditions have been met.
Binding
Contingencies are common in real estate contracts. They are used to protect the buyer or seller in the event that something goes wrong with the transaction.
A seller might include a contingency that allows them to cancel the contract if the buyer is unable to sell their current home.
Pending is the status of a real estate contract after both the buyer and the seller have signed it but before the transaction has been completed. At this point, all contingencies must be satisfied and all inspections and repairs must be made. Once all of these tasks have been completed, the contract is considered binding and the transaction can move forward.
Gather more info on real estate tips to buy a property here.
Understanding the Difference Between Contingent vs Pending Real Estate
If you’re in the market to buy or sell a home, it’s important to understand the difference between contingent and pending real estate. Remember that pending means an offer has been accepted, while contingent means there are still some conditions to be met.
In either case, it’s best to consult with a real estate agent to learn more about the difference between contingent vs pending real estate and what your next steps should be.
Hopefully, this article helped you learn more about real estate to make smart decisions in the future. Check out our blog to learn more!
