Contingent Vs Pending: Whats The Difference?

Table Of Content

• Contingent vs. pending real estate: What’s the difference?
• buying a home5 common reasons the homebuying process moves slowly
• What Does A Contingency Mean When House Hunting?
• Figure out the right time to Buy or Sell with iBuyer.com
• buying a homeThe best times to close on a house
• Contingent: With or Without a Kick-out Clause
• Tips for First-Time Home Buyers

The seller can't back out of the sale, unless the buyer fails to meet a contractual obligation (such as if their deposit fails to clear). However, they could still receive other offers so that they have a backup plan in case the deal falls through. The seller has accepted an offer with contingencies, and has not set a deadline for them to be met.

Contingent vs. pending real estate: What’s the difference?

Kenin explains that these contingencies allow the buyer to hire someone to inspect the home’s condition and safety. This article examines the definition of contingency, how the status relates to other terms in real estate, and how contingencies can affect the outcome of a potential sale. Connect with a top agent near you to get an expert opinion on how much your house will sell for, what to fix before listing, and the latest local housing market trends. An escalation clause states a buyer is willing to raise their offer if a seller receives a higher offer.

buying a home5 common reasons the homebuying process moves slowly

While contingencies can be important to protect you, this is another reason to make your offer with as few contingencies as possible. But the good news is that the sellers can’t kick you out just because they find a better offer. They must notify you and give you a certain period of time to remove the contingencies. In a contingency with a kick-out, sellers can continue to consider offers, and they will generally be looking at ones with fewer contingencies than the first offer. In any case, sellers considering additional offers once a home is contingent should consult a real estate attorney before making any new agreements.

What Does A Contingency Mean When House Hunting?

You may also wish to negotiate terms that limit sellers’ rights to accept new offers. If you have the cash to pay more upfront to make up the difference between the amount of the mortgage loan and the agreed-upon purchase price, or you can renegotiate, you may be able to overcome this. Contingent is a specific status that means a home is under contract, and finalizing the sale depends on completing specific actions.

One way to ensure smooth sailing on a contingent offer referencing an inspection is to line up an inspector before making the offer. The Hubbard Clause, which many current homeowners have to take advantage of when they try to sell while buying, is another common contingency. With nearly two decades in journalism, Dori Zinn has covered loans and other personal finance topics for the better part of her career. She loves helping people learn about money, whether that’s preparing for retirement, saving for college, crafting a budget or starting to invest. Her work has been featured in the New York Times, Wall Street Journal, CNN, Yahoo, TIME, AP, CNET, New York Post and more.

buying a homeThe best times to close on a house

When you factor in tasks like securing financing, getting a home appraisal and conducting the title search, it can take weeks for a buyer’s needs — called “contingencies” — to be met. After these contingencies are settled, the sale is considered pending until it’s officially completed. Keep in mind, you’ll need to submit an offer more attractive than other bids the seller could potentially receive.

Contingent: With or Without a Kick-out Clause

Sometimes, a listing will go straight from active to pending — often when there’s an all-cash offer involved. With a contingent offer, you have stated that a certain condition must be met before the sale moves forward. If it doesn’t, the contract is void, and the seller can move on to a backup offer received while the sale was contingent.

Contingent: Continue to Show (CCS)

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This means there’s still a chance that the sale could fall through and the house goes back on the market, should those conditions go unmet. You found what might be your forever home but notice that it’s listed as “contingent” or “pending.” What does this mean? While both contingent and pending mean that the seller has accepted an offer, neither necessarily means an offer you make would be left out in the cold. Let’s explore what contingent vs. pending means for your homebuying journey and how you still might be able to purchase the home you’ve been eyeing. A contingency is a clause or provision commonly included in a real estate purchase contract designed to protect the buyer's interests when purchasing a property.

If a contingency can’t be met, the buyer is free to walk away with their deposit money intact. When submitting an offer on a contingent house, keep in mind that you could end up with a more complicated home buying process. Depending on the situation, it may be advisable to include your own contingencies in your bid to protect your deposit. We recommend discussing all possible outcomes with your real estate agent before proceeding. Contingent houses can exist under a few different types of statuses that qualify them as contingent.

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This status means the seller has accepted a contingent offer from a buyer but can kick the buyer out of the agreement if the seller gets a better offer. Typically, the contingent buyer will have an opportunity to remove their contingencies before the seller accepts the new offer. There are no exact statistics to measure your chances of getting an offer accepted on a contingent home. There are many variables at play, such as the real estate market, the details of the original contingency offer, and the seller’s motivations. According to data compiled by the National Association of Realtors (NAR), it’s estimated that less than 5% of purchase offers fall through.