As a professional, I understand the importance of using the correct terminology when it comes to real estate. Two phrases that often confuse buyers and sellers are „under contract” and „pending.”
While both terms indicate that a property is no longer available for sale, there are some key differences between them that you should be aware of.
When a property is listed as „under contract,” it means that the seller has accepted an offer from a buyer, but the sale has not yet been completed. During this period, the buyer typically has a certain amount of time to complete inspections, obtain financing, and finalize any other contingencies outlined in the contract.
Once all of the contingencies have been met and the buyer has secured financing, the sale will move forward to closing. However, if the buyer is unable to fulfill any of the terms outlined in the contract, the deal may fall through and the property will become available for sale again.
When a property is listed as „pending,” it means that the sale has been finalized and is awaiting closing. During this period, the seller cannot accept any other offers on the property, as the sale is considered to be almost completed.
However, there is still a small chance that the sale could fall through if the buyer is unable to obtain financing or if there are issues with the title or property inspection. In the event that the sale does fall through, the property will become available for sale again.
Why The Terminology Matters
As a buyer or seller, it`s important to understand the difference between „under contract” and „pending” because it can affect your ability to make an offer or negotiate a deal. For example, if a property is under contract but still has contingencies, you may still be able to make an offer and potentially outbid the current buyer.
On the other hand, if a property is listed as pending, your only option would be to wait and see if the sale falls through before making an offer.
In addition, using the correct terminology can also help your property stand out to potential buyers. For example, a property that is listed as „under contract” may be seen as less desirable by buyers compared to one listed as „pending,” as the latter indicates that the sale is almost completed.
Knowing the difference between „under contract” and „pending” can help you navigate the real estate market with confidence, whether you`re buying or selling a property. By understanding these terms, you can make informed decisions and increase your chances of a successful transaction.