When searching for a new home, you will see properties with different statuses, such as ACTIVE, CONTINGENT and PENDING.
A frequently asked question in real estate is . . . what is the difference between contingent and pending? What can you do if the home you’re interested in is marked as contingent or pending?
In real estate, what does contingent mean?
The status of Contingent means an offer has been accepted by the seller. The property is still an active listing because requested provisions of the offer have not yet been met. Until those 'contingencies' are satisfied, the property will remain active. Common contingencies include mortgage approval, acceptable appraisal, acceptable home inspection, among others. Once all contingencies on the contract have been satisfied the property will be moved into the Pending status.
In real estate, what does pending mean?
The status of Pending means an offer has been accepted by the seller and all contingencies have been satisfactorily addressed or waived. The property is no longer considered an active listing. Once all the paperwork has been processed the closing takes place and the property status is changed to Sold.
There are things that can go wrong, however, that may cause the property to again become Active and available to purchase. Although it is rare that a property does not close once it is placed in a Pending status, a job loss, a change in the buyer's financial situation, some sort of tragedy for either the buyer or seller, or damage to the home, among many other things, can happen and cause a property to not transfer.
What can you do when the home you’re interested in is marked as contingent or pending?
You can make an offer on a home at any stage of the process. If you’ve fallen in love with a home that is contingent or pending, you should get in touch with your agent right away to explore your options for making an offer.
If you really want a home that’s listed as contingent or pending, you’ll need a solid strategy. Consider making an offer without contingencies. Although this can be quite risky, making an offer without contingencies is attractive to sellers. Depending on the contract terms and language that the seller has with the current buyer, they may be able to pressure the buyer to either drop their contingencies or leave the negotiations altogether.
Regardless of the posted status or the information the listing agent shares with your agent, it’s not always possible to know the dynamics of a home sale. This is obviously confidential information. However, if the sellers are not plased with how the current contract is progressing, making a compelling offer may give you a leg up on the current buyers, as well as any future potential buyers.
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