If you’ve ever browsed real estate listings, you’ve probably come across the terms “contingent” and “pending.” While both terms indicate that a property is on its way to being sold, they represent different stages of the transaction. Understanding these distinctions is crucial whether you’re a buyer, seller, or just curious about the market.
What does “contingent” mean in real estate?
When a property is listed as “contingent,” it means the seller has accepted an offer, but the deal hinges on specific conditions (known as contingencies) being met. These contingencies are safeguards that protect the buyer or seller from potential pitfalls. Common contingencies include:
- Inspection Contingency: The buyer can back out or renegotiate based on the results of a home inspection.
- Financing Contingency: The sale depends on the buyer securing a mortgage loan.
- Appraisal Contingency: The property must appraise for a value that supports the loan amount.
- Sale of Current Home Contingency: The buyer must sell their current home before closing on the new one.
While the property is contingent, it is still technically available, meaning other interested buyers could submit backup offers. However, the original buyer has the first opportunity to satisfy the contingencies and finalize the deal.
What does “pending” mean in real estate?
A property marked as “pending” means all contingencies have been resolved, and the sale is in its final stages. At this point, the buyer and seller are simply waiting for the necessary paperwork to be processed, and the transaction to close.
Unlike contingent properties, pending listings are less likely to fall through. The likelihood of the sale being completed is high, so these homes are typically considered off the market.
Key differences between contingent and pending
| Aspect | Contingent | Pending |
|---|---|---|
| Stage of Transaction | Early stage, with conditions to be met | Final stage, all conditions resolved |
| Availability | Still technically on the market | No longer considered available |
| Risk of Falling Through | Higher, as contingencies must be resolved | Lower, with fewer obstacles remaining |
Can you make an offer on a contingent or pending property?
- Contingent: Yes, but any offer you make would be a backup offer. You’d only have a chance to purchase if the original deal falls through.
- Pending: It’s much less common for buyers to make offers on pending properties, as these deals are closer to closing.
What should buyers and sellers keep in mind?
- For Buyers: If a property you love is contingent, keep an eye on it and consider submitting a backup offer. However, don’t put all your hopes on it. Pending properties are less likely to re-enter the market, so focus your efforts on active listings.
- For Sellers: Properly setting expectations during the contingent phase can help prevent deals from falling apart. Ensuring buyers are pre-approved and contingencies are reasonable will minimize delays and uncertainties.
Summary
Understanding the difference between contingent and pending can give you a clearer picture of a property’s status and the overall real estate process. While contingent properties have more hurdles to overcome, pending listings are closer to completion. Whether you’re buying or selling, working with an experienced real estate agent can help you navigate these phases and secure the best outcome.
Are you thinking about buying or selling real estate in the South Florida area? We can help. Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search app for your smartphone or tablet!
