Contingent vs. Pending in Real Estate: What Does it Mean?

When it comes to buying and selling real estate, the terms “contingent” and “pending” are used a lot. It can be confusing to figure out the difference between them. In general, contingent means that an offer has been made on the property, but is conditioned on certain conditions being met before the sale can close. This could mean that there is an inspection contingency, a loan contingency or any other type of agreement between the buyer and seller. The sale is pending when all contingencies have been met and that both parties have agreed to move forward with the transaction. In this case, the home will remain off-market until closing day once inspections are complete and financing is finalized. At that time, it will be listed as “closed” and the transaction will be complete.  

It is important to understand the difference between contingent and pending when buying or selling real estate, as it can have a major impact on the success of your transaction. Knowing which is which can help ensure you are making the right decision for yourself and your family.

How to get out of the contingent stage and into the closing stage?

In order to move from contingent to pending, all contingencies must be met and you must get approval from both parties. If there are any inspections or appraisals that need to be done, they should be completed and passed with satisfactory results. Once all of this has been accomplished, the seller is then able to accept your offer and begin moving forward with the transaction. 

Additionally, it is important to ensure that buyer and seller agree on financing terms in order to secure a loan prior to closing. This will help ensure that everything runs smoothly when you close on the property. Taking care of these steps ahead of time can make all the difference in getting out of contingency status and into the closing stage as quickly as possible.

Does being contingent or pending affect my home loan?

Being contingent or pending does not usually affect your ability to get a home loan. However, it is important to make sure that all contingencies are met and you have been approved for financing before closing on the home. This will ensure that everything runs smoothly and that no surprises come up during the closing process. 

Additionally, many lenders will require an appraisal of the property prior to issuing a home loan, so it is important to complete this step in order to move forward with financing.  By taking care of these steps ahead of time, you can be confident that you will have success when securing a loan for your new home.

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