Understanding Contingent vs. Pending Real Estate Listings
Summary:
A pending listing is moving to close, and all conditions that would otherwise cause it to take longer have resolved
Contingent listings still need key elements of the deal resolved, and negotiation to influence the agreement may still occur
You can still win a negotiation for a contingent, or even a pending, home with a firm offer and contract terms, especially if another potential buyer’s timeline slips
Investing in a new home is often a complicated process, with many legal and financial steps required to get from the first offer to a finalized deal. It is no surprise that many people are confused by the listing statuses for homes, and many often wish for plain English terms to help them unravel the details behind a location’s availability.
Below, we offer simple definitions of contingent vs. pending listings, and what they mean for elements of the buying process, such as showings, offers, or the timeline in general. By being able to answer questions like: “What’s the difference between contingent and pending?”, you should be able to act with more confidence and avoid wasting time while taking advantage of any available opportunities.
Read on to discover how these statuses impact buyers and sellers in Gig Harbor, and how Schulte & Co. can help guide you through such challenges moving forward.
Contingent vs. Pending vs. Under Contract
The three labels most buyers see when checking out listings online are:
Contingent
Pending
Under contract
Each of these signals how far a home’s sale is along, whether it is close to closing, and whether it makes sense to put forward a new offer.
What Does Pending Mean on Zillow and Other Websites?
A home that is pending will have cleared most major blockers, such as these, and is likely to be removed from the market soon, before the final closing and sale. A pending offer means that it is unlikely that the seller will accept any new offers, but it is not impossible. At this stage, timing and negotiation are essential to securing the home you desire.
What Does Contingent Mean in Real Estate?
Contingent means that there are still open conditions remaining before a sale will close. These could be several steps, including:
Inspections
Lien checks
Appraisals
Financing
As buyers occasionally pull out during this stage, you can often (but not always) put an offer forward if a home is listed as “Contingent”. If the original buyer rescinds their offer, you may be able to inquire as to whether you can make an offer instead.
What Does Contingent Mean in Real Estate?
“Under contract” is another term you may see on some listing sites. It is a more general concept, meaning the listing may be pending or contingent. You may need to contact the seller to learn more about the property's status.
Still, it suggests that the location is less likely to accept additional offers before the sale.
As a buyer, if you have put forward an offer and the seller switches the listing’s status, it is crucial to understand that the “contingent” meaning on a house listing after you have made an offer likely suggests that the seller considers your offer serious and wants to negotiate with you. However, it may also mean that someone else has done the same, so remain vigilant.
Common Conditions That Keep Homes in Contingent Status
While the negotiation process may mean that any lack of agreement may keep a home in contingent status, the following are some of the more common reasons:
The home has yet to pass inspection
The contract requires renegotiation following an inspection
An appraiser must list the property at a high enough price for a mortgage to be accepted
The buyer must get final loan pre-approval
The ownership of the home must be free of problems before a sale can occur
The buyer is attempting to sell their current home before they can purchase the property
Discussing each of these points with the seller may allow some adjustments, moving the property to pending status. However, this is not always the case, and you will likely want to protect yourself before selling something when any of the above issues are unresolved.
Chances of Slipping Between Steps
The typical progression of any sale is:
Offer accepted > Contingencies cleared > Pending > Sale closes
However, as negotiations continue, a home could switch between any of these steps before closing, or the home may fail to sell entirely. You can expect a broad timeline to be something along the lines of the following:
A potential buyer should take around 7-10 days to decide on an inspection
After a contract, a lender will usually book an appraisal within 48 hours
The appraisal report is likely to arrive within a week, but a third-party appraisal may take several weeks
Loans are likely to be investigated long before closing, and buyers should seek out a pre-approval to speed up the process
Any seller should keep a backup offer in mind when these processes are pending to enable them to move quickly if any of these steps cause the sale to fall through.
If the sale is due to a new construction, then these steps may be yet further different. They may depend on many factors, such as:
Permit schedules
Changes to the construction process
Final inspections with the builder to handle defects or unfinished work
Supply chain disruptions and labor shortages
So, keep in contact with the builder to ensure you are aware of the current status of the new construction and whether any changes are needed if you are a buyer.
Following the Path to a Smooth Sale
Now that you understand what contingent vs. pending mean and why they matter in the real estate process, you can take your next step in a sale. If you wish to purchase a property in the Gig Harbor area, Schulte & Co. pairs our experience in keeping to sales timelines with using local knowledge to the benefit of buyers and sellers.
To learn more about our devotion to our concierge service and how we will always consider your unique position as a seller when you work with us, get in contact and discover what Schulte & Co. can do for you.
