In real estate, there are two main statuses a property can be in after an accepted offer: under contract and pending. Show
Both mean the property is expected to be sold, but they have different implications for buyers, sellers, and real estate agents. Understanding the difference between under contract vs pending is important for everyone involved in a real estate transaction. Below we highlight the key differences so buyers know what to look out for when searching for listings. What does under contract mean?When a buyer makes a formal offer on a home and the seller accepts the terms, they are typically said to be "under contract" or "under agreement" depending on where you live. This means that the buyer and seller have reached an agreement in principle, and the home is now considered to be in escrow. While there are still a few steps that need to be completed before the sale is finalized, it is generally considered to be a done deal. The buyer's offer will likely be marked as "under contract" or "in contract" in the MLS, and other interested buyers will usually be informed that the home is no longer available. In most cases, the sale will go through without any problems, and the buyer will soon be able to move into their new home. What does pending sale mean?When a property is marked as "pending," it means that the property is under contract and that all contingencies have been cleared. A contingency is a condition that must be met in order for the sale to go through. Once all of the contingencies have been met, the property is then considered pending. This means that the sale is likely to go through, barring any unforeseen circumstances. At this point, the property is typically removed from the market and is no longer available for showings. PREVU SMART TIP Did you know you can get a buyer ebate from your broker? Buying with Prevu you’ll pocket a buyer's rebate up to 2% of your home's purchase price. On a $1,500,000 property, you’d receive up to $30,000 cash back. Learn how you can save when you buy! How do you know if a property is pending vs under contract?Once a seller and buyer have agreed on all the terms of a deal and the seller has accepted the buyer's offer, the listing status will usually be changed from "active" to "under contract" or "pending" by the seller’s agent in the MLS. When looking at listings online, look for the status of the property. Most real estate sites prominently display the status on each listing and allow you to filter your search results for active for sale listings only. What does contingent mean?When a home is listed as contingent, it means that the sale is not yet final. There are several contingencies that can apply to a home sale, but the most common are financing and inspection contingencies. A financing contingency means that the sale is contingent upon the buyer being approved for a mortgage. An inspection contingency means that the sale is contingent upon the buyer being satisfied with the results of a home inspection. These contingencies are typically valid for a set time period - usually quoted in days. In both cases, if the buyer is unable to obtain financing or satisfy the inspection contingency, they may back out of the sale without forfeiting their earnest money deposit. Can you still make an offer on a home if it is under contract or pending?Yes. Buyers may still make an offer on a home that is under contract or pending, but it depends on the particular transaction. If the seller has already signed a contract with another buyer, then you would likely be making a backup offer. The seller would only be able to consider your offer if the first buyer backs out for some reason, or if the buyer and seller reach an impasse that legally allows the seller to walk away from the deal. Before making an offer on a home that is under contract or pending, be sure to consult with a real estate agent to understand the contract implications for the seller. Interested in buying a home this year? Browse listings in your favorite town and see how much you can save with Prevu's Smart Buyer Rebate. Whats the difference between active under contract and pending?Active Under Contract vs Pending
When a property is listed as “active under a contract,” there are conditions/contingencies that must be met before the deal can close. However, when a property is listed as “pending,” all the contingencies have been met and the deal is on the road to being finalized.
What is the difference between under contract and sold?What does it mean when a house is 'active under contract'? When a home is active under contract it means that a buyer has made an offer on the home and the seller has accepted, but the sale is not yet final. When the transaction is complete, the status of the home will show that it has sold.
What does active under contract no kick out mean?A "kick-out" clause is sometimes used if a seller wants to reserve the option to accept a better offer, once the property is under contract. A "no kick-out" clause means that the seller relinquishes this option once his/her home is under contract.
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What does active under contract mean when buying a house
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