What's the Difference between Contingent vs. Pending?
The major difference between contingent vs pending is the simple fact that a ‘contingent’ listing has recently entered the closing process and a ‘pending’ listing has almost reached the end of the closing process.
The Residential Buyer: “We’ll send you our highest offer, if you want to sell your house fast.”
The ‘if’ would be the contingency in that deal; we can’t possibly just send you an offer unless you let us know that you want to sell your house for top dollar.
What does ‘Contingent’ mean?
When a house/ home is in this ‘contingent’ state, it may also be referred to/ listed as ‘under contract’.
This means the seller has received an offer but closing on the home depends on contingencies (even a termite bond) that were previously laid out in the purchaser’s contract. Some of these contingencies may be centered around:
The house isn’t yet on the final stretch for closing and has a much higher likelihood of falling through at this stage.
What does ‘Pending’ mean?
As soon as all the contingencies have been met and preparations are being made for the closing date, the properties status will change to ‘pending’. Properties in this stage can still fall through due to financing issues, though it is uncommon.
How often do ‘Contingent’ offers fall through?
This is another difference between pending vs contingent offer, contingent offers are more likely to fall through because the deal is in its infancy stage. A ‘contingent’ offer may fall through if:
- The buyer’s home inspector found issues with the home
- The buyer’s financing falls through
- The house is over or undervalued and triggers the Appraisal Contingency
- The buyer can’t find a buyer for their previous property
- The seller has title issues
Many seller’s, whose homes are in ‘contingent’ will still accept offers; because there may be many contingencies left to fulfill and they want to keep their options open.
We are a direct home buyer, sell your home to us and bypass all the headaches of unnecessary contingencies.