When you`re browsing real estate websites or speaking with a real estate agent, you may come across the terms “under contract” and “pending” when looking at properties. While these two phrases may seem interchangeable, they can have different implications depending on the context.
Under Contract
When a property is listed as “under contract,” it means that a buyer has submitted an offer that has been accepted by the seller. However, the sale has not yet been completed, as there may still be contingencies that need to be met before the sale is finalized.
Contingencies can include things like a home inspection, appraisal, and financing. During this time, the buyer and seller will work together to satisfy any contingencies and ensure that the sale moves forward smoothly. This period can last anywhere from a few days to several weeks, depending on the specifics of the contract.
While a property is under contract, it is not typically available for other buyers to make offers on. However, if the contingencies are not met, the contract may fall through, and the property will once again be available for sale.
Pending
When a property is listed as “pending,” it means that the sale has been completed and the property is in escrow. All contingencies have been satisfied, and the only thing left to do is for the buyer to take possession of the property.
During the pending period, the buyer will typically submit any necessary paperwork and finalize their financing. The seller will also prepare to transfer ownership of the property to the buyer. Once all of these steps are complete, the sale will be finalized and the property will officially change hands.
While a property is pending, it is no longer available for sale. If the sale falls through for any reason, the property will need to be relisted as under contract or available for sale.
In summary, the main difference between under contract and pending is that under contract means that the sale has been agreed upon but is not yet finalized, while pending means that the sale is complete and the property is in escrow. Understanding these terms can be helpful when browsing real estate listings and can help you better understand the status of a property you`re interested in.