When searching for a new home you need to know difference between pending and contingent, you may come across properties listed as “pending” or “contingent.” When researching properties, keep an eye out for these terms: they mean the property may not yet be sold.
Understanding the distinctions between these two states can help you locate homes that may be available for purchase. It’s essential to note that not every property will close once it reaches one of these statuses.
Contingent listings are more likely to fall through
A contingent listing in real estate refers to a property that’s still available but not yet ready for closing. This means there are still some conditions that need to be fulfilled by either the buyer or seller before the deal can close.
In most cases, this isn’t a major concern. However, some home buyers and sellers may find it irritating when a property is marked as contingent.
It’s essential to be aware that if a home you wish to purchase is listed as a contingent listing, chances are another buyer has already made an offer on it.
When this occurs, the initial buyer must reach out to the seller and grant them a certain amount of time to remove the contingency. Generally, this period ranges from 24 to 48 hours.
Pending listings are more likely to stay on the market
When a property’s status changes to “pending,” it means an offer has been accepted by the seller but no deal has yet been finalized. On average, pending sales remain active on the market for 30-60 days.
In the meantime, you can utilize this time to arrange for a home inspection or clear the title of the property in order to guarantee there are no outstanding issues that will hinder sale. Doing so gives you an advantage over competing buyers; however, most sellers won’t accept your offer unless their current sale fails.
According to NAR, the share of pending sales that fail has recently increased but remains within pre-pandemic norms. This could be attributed to affordability challenges taking a toll on buyers with lower income as mortgage rates have gone up. It also suggests that the housing market is rebalancing itself to better meet changing buyer demand and expectations.
Pending listings are more likely to be accepted by the seller
When a listing is marked as “pending,” it indicates the sellers have accepted an offer from a buyer and are ready to close on the house. However, this doesn’t guarantee other potential buyers won’t get the opportunity to purchase the property.
Are you a buyer who’s fallen in love with a house on the MLS that is marked as “pending?” Do you have any queries about this type of listing?
Homes often remain unsold until closing due to financing problems. If you want to make an offer on a pending house, make sure your offer stands out above other offers the seller may receive.
Pending listings are more likely to be accepted by the buyer
When a home is listed as “pending,” it means the seller has accepted an offer but has chosen not to close until certain conditions are fulfilled, such as mortgage approval and appraisal.
On rare occasions, buyers may decide to cancel the sale and take no money with them. While this is rare, it does occur.
Buyers have the option to cancel a pending sale if they are uncertain that the home meets their needs or find an improved property. They also have the right to back out due to an emergency that requires them to relocate for work.
A pending listing is further along in the process than a contingent one, meaning there’s more of a chance it will be accepted by the buyer. But before you become too attached, make sure to reach out to the listing agent for more details about the home. They can answer your questions, put together an alternative offer (if the sale is being accepted), or help locate another property suitable for you.