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What does contingent and pending mean in real estate

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What Does Contingent and Pending Mean in Real Estate?

In the dynamic world of real estate, it is essential to understand the various terms and jargon that are commonly used. Two terms that often arise during the buying or selling process are "contingent" and "pending." These terms play a crucial role in determining the status of a property and can greatly impact both buyers and sellers. In this article, we will delve into what contingent and pending mean in real estate, specifically focusing on the context of the United States.

Contingent: A Closer Look

When a property is labeled as contingent, it means that an offer has been made and accepted by the seller, but certain conditions or contingencies must be met before the sale can be finalized. These contingencies can include various factors, such as home inspections, financing, or the sale of another property.

For instance, if a buyer has made an offer on a house contingent upon the sale of their current home, the seller is essentially taking the property off the market but with the understanding that if the buyer's home does not sell within a specified timeframe, the offer becomes null and void. During this period, the seller may still consider other offers, but if a better offer comes in, they must provide the

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Is pending or contingent better?

If a home is listed as pending, all contingencies have been met and the sale is further down the closing path, with most of the paperwork in place — but the transaction has not yet been completed. You are more likely to be successful making an offer on a contingent home than a pending one.

Can a seller accept another offer while contingent?

Contingency with a kick-out clause

That means the seller can continue to show the home and accept offers during the sale contingency period. If the seller gets a better offer, they'll allow the original buyer 72 hours to drop the sale contingency and proceed with the deal.

Which is closer to closing pending or contingent?

The difference is that contingent listings still need to meet one or more specific conditions before moving forward. With pending deals, conditions have been met, and both parties are planning to move forward to closing.

How often do contingent offers fall through?

Among contingent offers, less than five percent fall through, according to multiple sources. Broken offers may arise because the buyer isn't able to secure financing or because the seller isn't willing to lower their listing price after a low appraisal.

Why don't sellers like contingent offers?

Contingent offers provide protection to buyers. But there are risks involved, especially for sellers. Because contingent offers require some other event to take place – such as an appraisal of a home for a certain amount or a home inspector giving a residence a passing grade – they can fall through.

Can you put an offer on a house that is contingent?

In most cases, putting an offer in on a contingent home is an option to consider. Although it doesn't guarantee you'll close on the home, it does mean you could be first in line should the current contract fall through. Putting an offer in on a contingent home is similar to the homebuying process of any active listing.

Frequently Asked Questions

Is it better to be contingent or pending?

If a home is listed as pending, all contingencies have been met and the sale is further down the closing path, with most of the paperwork in place — but the transaction has not yet been completed. You are more likely to be successful making an offer on a contingent home than a pending one.

Can you put an offer on a house that is pending contingent?

If you're interested in a property that's listed with an active contingent status, you may still be able to make an offer. While the initial offer will take precedence if all the contingencies are satisfied, making an offer can put you at the head of the line if the original deal falls through.

FAQ

Does pending or contingent come first?

Does pending or contingent come first? Contingent deals are technically still active listings because they can fall out of the contract if contingencies are not met. If the contingencies are met, the deal with then advance to a pending status.

What is difference between pending and contingent in real estate

Apr 14, 2023 — If the status is listed as contingent or pending, it means that the house is under contract; that is, the seller has accepted the buyer's offer 

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