When searching for a home, it can be discouraging to come across listings with contingent or pending status. But understanding these terms will enable you to make the best decision for your individual requirements. Know the differences between contingent vs pending.
When a property is listed as “contingent,” it means the seller has accepted an offer but there are still certain conditions that must be fulfilled before the sale can close.
Definition
Real estate agents frequently refer to contingent and pending as two stages in a home sale process. Understanding what these labels signify can help you make informed decisions when shopping for your next house, avoiding time-wasting properties that are out of your price range or are unattainable.
Generally, contingent means the seller has accepted an offer from a buyer but there are additional criteria (called contingencies) which must be fulfilled by both parties before the deal can close. Depending on which kinds of contingencies are included in the deal, it could fail if they’re not fulfilled within time or one party withdraws from it.
On the other hand, a pending status indicates that all conditions have been fulfilled and the deal is on its way to closing. These deals may also be referred to as short sales since they require lender approval before being completed, taking much longer than regular sales to complete.
Synonyms
Contingent and pending are terms commonly used in real estate. As either a buyer or seller, these concepts should be understood as they can significantly affect the timeline for your home purchase.
A contingent sale is one in which the seller has accepted an offer, but certain conditions must be fulfilled before it can close. This could include things like appraisal approval or financing approval as well as any other contingencies included in the contract.
If these conditions aren’t fulfilled, the sale could fall through or the seller may opt to accept backup offers on the property until they are completely satisfied.
Homes listed as contingent in the MLS system remain active, but their sellers are accepting backup offers until all conditions have been fulfilled. This gives them a chance to find another buyer should their initial buyer withdraw for any reason.
Antonyms
The term contingent refers to an event that depends on something else occurring first. For example, if you want to purchase a new home, it is likely that it won’t occur unless you sell your current house first.
The term contingent can also refer to a military unit that joins another force. For instance, British troops sent over an aid mission for American troops.
There are a variety of antonyms for contingent, such as accidental, casual, and fortuitous. Knowing these alternatives can help you avoid using the word contingent when it doesn’t belong.
One of the best ways to learn about words is by researching their etymology and history. Knowing a word’s roots can aid comprehension, as well as lead to better spelling and definitions. For instance, contingent is derived from Latin continge, meaning possible, combined with the verb venir, which means to come into being.
Examples
When searching for a home, listings may not just say “for sale,” but they might also include words like “pending,” or “contingent.” What do these terms signify and how can you utilize them to your advantage?
When a real estate listing is contingent, it means certain conditions must be fulfilled before the deal can close. These could include getting financing approved, getting an appraisal or performing a home inspection.
If the home’s condition doesn’t meet these requirements, the contract is voided and the property goes back on the market. This is a common practice in real estate; both buyers and sellers should be aware when a property’s status changes from active to contingent or pending.
Contingent listings often allow other buyers to submit an offer on a property while it remains active, giving them security in case their first buyer backs out for whatever reason.
