Under contract, contingent, pending – what do they mean and can I still make an offer?
Even though an offer has been accepted, several different factors could cause the sale to be canceled.
The home buying process is a complex series of stages, which is why you’ll come across homes that aren’t quite on the market, but not quite off either. To be under contract means the property is in the Show For Backups (SFB) stage or Pending (P), but not closed yet.
Contingent
To put it simply, Contingent (C) means that something is dependent on certain conditions. If a contract has been accepted with a “contingent” requirement, the sale of the buyer’s house must be complete prior to closing on the new house. A contingent status on the sale of a house comes with options that you should discuss with your (the buyer’s) agent.
A few things you can expect to happen while in the Under Contract, Show For Backup, or Pending Stage:
- Home Inspection: Inspections are done during the 10 day period of being Under Contract. The whole house will be inspected including checking radon levels, HVAC, mold, and sewer line.
- Appraisal: An appraisal can be part of the initial negotiations when purchasing a house, It is required from your lender as part of your loan processing. For buyers, the appraisal shows how much money your lender is willing to give you towards the house.
- Clear Title: A clear title helps to show whether there are any outstanding financial responsibilities attached to the property and is necessary to demonstrate that an owner has the clear rights to sell the property. The title company provides the information to show if there is a clear title to the house. That title insurance policy is to protect the buyer in case of any discrepancies on previous sales.
Some agents will still show a home that is under contract with the goal of receiving a better offer.
Pending
When a home is listed as pending, this means that all of the conditions and negotiations have been met – the buyer and seller have completed all the steps to officially close. The MLS status will change to Closed when money has been exchanged at the Title Company. Typically one (buyers or seller’s) agent is present during this legal transaction as it is much more detailed than often recognized. In the complex world of real estate, every detail matters and hiring a professional is essential to making sure the transaction is smooth and you get the best deal possible.
If you have more questions about the status of properties, send Ellen a message online! She’s here to give you the best chance at securing your dream home!
