Real estate transactions can be complicated, and understanding the different real-estate-based terminologies is key to making sure you have a successful experience. One term you may come across is pending, which can easily be misunderstood. In this blog post, we’ll talk about what pending means in real estate, what to choose between contingent vs. pending, and how understanding this distinction can help you navigate the complex world of real estate transactions.
Table of Contents
- What Does Pending Mean in Real Estate?
- What is Contingent in Real Estate?
- What Are the Differences Between Contingent and Pending Offers?
- Can You Put an Offer on a House That Is Pending?
- How Does Selling Housework Under These Contracts?
1- What Does Pending Mean in Real Estate?
A pending offer is an offer to buy real estate that has been accepted by the seller but is not yet closed. The term “pending” typically refers to the status of a real estate contract between a buyer and a seller. Once an offer is accepted, the contract is considered “pending” until the deal closes.
Pending offers are common in real estate transactions and usually occur when the buyer and seller have agreed upon the price and terms of the sale, but are waiting on contingencies to be met or for financing to be finalized. In some cases, a property may be listed as “pending” if an offer has been made and accepted, but the sale has not yet been completed.
Pending offers can be contingent or non-contingent. A contingent offer means that the buyer’s offer is conditional on something else happening first, such as the successful sale of their current home or approval for financing. A non-contingent offer means that there are no conditions attached to the buyer’s offer.
If you’re thinking of making an offer on a property that is already pending, it’s important to know what kind of pending offer it is. A contingent pending offer may still be possible to negotiate, but a non-contingent pending offer is much less likely to change.
2- What is Contingent in Real Estate?
Now that we’ve already talked about what pending means in real estate, it’s time to talk about what contingent means. When a home is under contract, the sale is not yet final. The purchase is contingent upon certain conditions being met, such as the buyer obtaining financing or the completion of necessary repairs. If any of these contingencies are not met, the buyer may back out of the contract and walk away from the deal.
Contingencies are typically put in place to protect the buyer from making a purchase that they may not be able to fully afford or that requires more work than they anticipated. For example, a buyer may want to make sure that they can obtain a loan for the full purchase price of the home before moving forward with the sale. Or, if the home needs significant repairs, the buyer may want to contingency the sale on the completion of those repairs.
In some cases, contingencies may be negotiable. For example, a seller may be willing to remove a financing contingency if the buyer is willing to pay all cash for the property. Or, a seller may be willing to make repairs themselves in order to avoid having the sale contingent on those repairs being completed.
3- What Are the Differences Between Contingent and Pending Offers?
There are a few key differences between contingent and pending offers on a piece of real estate. A contingent offer is one that is dependent or based on something else occurring, while a pending offer is one that has been submitted and is awaiting acceptance.
In most cases, a contingent offer is based on the buyer being able to secure financing or the home passing a professional inspection. If either of these contingencies is not met, the buyer typically has the right to back out of the deal without losing their earnest money deposit.
Pending offers, on the other hand, are considered much more firm. Once an offer is pending, it means that both the buyer and seller have agreed to all terms and conditions and are just waiting for the transaction to be finalized. In some cases, a pending offer may be contingent on certain conditions being met, but this is typically spelt out in great detail in the contract.
4- Can You Put an Offer on a House That Is Pending?
When you are house hunting, it can be disheartening to find the perfect home, only to discover that it is already pending. Can you still put an offer on a house that is pending? The answer is, it depends.
When a house is pending, it means that there is an offer on the house that the seller has accepted. However, the sale is not yet complete; the buyer and the seller have agreed on the price, but there are still several steps that need to be taken before the sale is finalized. Until those steps have been completed, the house is technically still for sale, and another buyer could potentially put an offer on the house.
Of course, just because you can put an offer on a house that is pending doesn’t mean that you should. If a buyer has already made an offer and it has been accepted, that buyer is likely committed to the purchase and is working with the seller to wrap up any remaining details. It is unlikely that the seller will entertain a competing offer, and it could be seen as disrespectful to the first buyer.
That said, it’s not unheard of for a seller to entertain a competing offer, particularly if the first buyer hasn’t gone through with their commitment. However, this is rare, and you should be prepared to be rejected if you decide to make an offer on a house that is pending.
The best thing to do if you find a house that is pending is to move on to the next house. Do your research, check out the local listings, and take the time to find the perfect house for you. There are plenty of great houses out there, and you don’t have to settle for a house that is pending. You may even be able to find a better deal on a house that hasn’t been snatched up yet.
5- How Does Selling Housework Under These Contracts?
If you’re selling a home, you’ve probably heard the term “pending” used to describe the status of your listing. So, what does pending mean in real estate?
Here’s a quick rundown: when a home is listed as contingent, it means that the sale is contingent on certain conditions being met. Typically, these conditions are related to the buyer obtaining financing or the completion of inspections. Once all of the contingent conditions have been met, the sale is then considered pending.
A pending sale means that all of the contingencies have been cleared and that documents are now being processed by escrow. At this point, it’s just a matter of waiting for everything to be finalized and for the closing to occur.
Selling a home can be a complex process, so working with an experienced real estate agent is always recommended. With their help, you can navigate these waters and ensure that your home sells smoothly and efficiently.