As you search for homes, you will come across listings with various statuses; for instance, you can wonder the difference between pending and contingent some will indicate “Contingent,” while others could read “Pending.” When seeing “taking backups,” that means the seller is open to receiving offers for additional properties as back up offers.
Contingent properties are still active on the market, while pending properties are further in their transaction process. To make sure that you buy an affordable property that can close, get pre-approved for a mortgage to make sure it will close smoothly.
As you shop for a home, you’ll encounter property listings with various statuses; active, pending and contingent are three such statuses you should familiarize yourself with to make informed offers on property listings.
If you are contemplating making an offer on a property listed as contingent, work closely with your real estate agent to identify which contingencies apply. For instance, having the home professionally inspected could help provide more clarity if any serious issues must be addressed before entering into an offer agreement.
Contingencies associated with contingent properties could include selling the buyer’s current home and/or qualifying for a mortgage loan, which can slow down the process and are less desirable to sellers. Submitting a backup offer with less conditions might convince the seller to accept it instead.
Pending properties are further along in the process than contingent homes and tend to have less chance of falling through, yet still may. Life happens, and sometimes buyers can change their minds or financing may fall through; both could impact pending property sales negatively.
Whenever this occurs, the home will go back on the market and in some instances may allow backup offers to come through; in these instances it’s wise for potential buyers to speak with their real estate agent beforehand about any pending or contingent properties so they know what to expect and can make informed decisions. Want to start house hunting online? Click here and get approved online – then begin shopping for your dream home!
Buying a home with a contingency
Before making an offer on any property, it’s essential that home buyers understand the difference between contingent and pending offers. Contingent offers may seem risky to sellers, leading them to back out and potentially lead to failed deals; but there are ways you can circumvent this problem: firstly by getting preapproved by your lender early. This shows them you are serious and makes your offer more appealing to sellers.
Contingency issues can also be avoided by making cash offers on properties. This allows buyers to bypass home sale contingencies that require them to first sell their current home before buying their next. Furthermore, backup offers should always be submitted, especially in an active real estate market. Unfortunately, contingencies cannot always guarantee successful home sales; buyers may experience job loss or have financial complications that force a transactional breakdown.
Buying a home with no contingencies
Home listings that are in contingent status indicate that an offer has been accepted but certain requirements must first be fulfilled for completion, such as finance and appraisal contingencies. Once met, the seller will change its listing status to “pending” and no longer permit other potential buyers to view it.
Home buyers whose purchase of their current property is contingent on selling may remain on the market for weeks or even months before it goes pending, causing frustration to buyers who have been searching for long and may end up losing it altogether. It’s essential that when buying contingent or pending property you work with an agent who understands all your options. They can help get pre-approved for mortgage and make offers that are as strong as possible.