When it comes to buying or selling a property, it`s important to understand the terms used in the real estate industry. Three of the most common terms that you`ll come across are pending, contingent, and under contract. While these terms may seem similar at first glance, they actually have very different meanings. Understanding the difference between them can help you navigate the buying or selling process more easily.

Pending

When a property is marked as pending, it means that the seller has accepted an offer from a buyer and the deal is in progress. The property is no longer available for showings or offers, and the seller is no longer accepting new offers. However, the sale is not yet final. Pending listings can still fall apart for a number of reasons, including issues with the inspection, financing, or other contingencies.

Contingent

Contingent is a term used to describe a property that has an offer on it, but the sale is not yet final. The offer is often contingent upon certain conditions being met. For example, a buyer may make an offer that is contingent upon them being able to sell their current home first. Other common contingencies include the property passing inspection, the appraisal coming in at a certain value, or the buyer being able to secure financing.

Under Contract

Under contract is a term used to describe a property that has a signed agreement between the buyer and seller, and the deal is moving towards closing. The property is no longer open for showings or offers, and both parties are bound to the terms of the contract. During this period, the buyer typically has a certain amount of time to complete any necessary inspections or financing arrangements.

So, what`s the difference?

The key difference between pending, contingent, and under contract is the level of commitment between the buyer and seller. Pending means that the seller has accepted an offer, but the sale is not yet final. Contingent means that the sale is dependent on certain conditions being met. Under contract means that there is a binding agreement between the buyer and seller and the sale is moving towards closing.

Understanding these terms is important for both buyers and sellers. For buyers, it can help you understand the status of a property and whether or not it`s worth pursuing. For sellers, it can help you manage your expectations and understand the level of commitment from potential buyers.

In conclusion, pending, contingent, and under contract are all terms used to describe the status of a property during the buying or selling process. While they may seem similar, they have very different meanings. Understanding the difference between these terms can help you navigate the real estate process more easily and make informed decisions.