Lisa Mailhot | August 16, 2024
Buyers
Understanding "contingent" and "pending" in real estate listings is crucial for buyers strategizing their next move. Here’s a breakdown of what these terms mean and how they play out in real scenarios.
A contingent status means that while an offer on a home has been accepted and it's under contract, certain conditions—known as contingencies—need to be met before the sale can finalize. Here are some common types:
A pending status indicates that an offer on a property has been accepted, all contingencies have been met or waived, and the property is nearing sale closure. The listing becomes inactive, and while the seller is committed, the buyer may still back out, albeit at the risk of losing their earnest money deposit.
It's possible to make an offer on a property that's already under contract. Sellers may consider backup offers in case the initial deal falls through. However, once a property moves from contingent to pending, entering the fray as a new buyer becomes increasingly difficult.
While rare, there are instances where deals don’t close. For example, in June 2024, about 5% of agreements were terminated before closure due to financing issues, failed inspections, or appraisal problems, according to the National Association of Realtors.
Understanding the distinction between contingent and pending statuses can significantly influence your home-buying strategy. Knowing the specifics of each can help you make more informed decisions. If you’re considering a move in the real estate market, let’s connect and navigate your options together!
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