Contingent vs. Pending in Real Estate
When buying or selling a home, it is crucial to understand the difference between contingent and pending. Contingent means something else needs to happen before the sale goes through while pending means the seller already approves the sale. Knowing the difference can help you decide your purchasing or selling process.
What Is Contingent?
If a sale is contingent, something else needs to happen before the deal can go through. For example, the buyer might need to sell their current home before buying the new one. Or the buyer might need to get a loan from the bank. The seller might also be contingent on getting a new job or finding a new home in some cases.
It is important to note that a contingent sale is not final. Until the contingency conditions are met, the deal can fall through. This means that it is vital to keep track of any contingencies in your purchase or sale agreement. This can help avoid any surprises down the road.
What Is Pending?
If a sale is pending, the seller has already approved the sale. The buyer and the seller have agreed to the sale terms, and the only thing left to do is finalize the paperwork. A sale will be pending in some cases, but the buyer will back out at the last minute. This can be frustrating for the seller, who has already gone through approving the sale.
Pending sales are more final than contingent sales. This is because the buyer and seller have already agreed to the terms, and there is less chance for the sale to fall through. However, it is still possible for a pending sale to fall through if something unexpected happens. This is why it is essential to have a clear contract in place.
Knowing the difference between contingent and pending can help you decide your purchasing or selling process. If you are buying a home, you might want to wait for a contingent sale to go through before you make an offer on a new home. If you are selling a home, you might want to consider accepting pending sales instead of contingent sales. This will help ensure that your home sells more quickly.
Originally published on JamesDurkin.co on March 11, 2022