When it comes to buying or selling a house, there are a lot of terms that can cause confusion. Two of the most commonly misunderstood terms are „pending“ and „under contract.“ While they may seem interchangeable, these two terms actually have different meanings in the world of real estate.
When a property is listed as „pending,“ it means that a buyer has made an offer on the property and the seller has accepted it. However, the sale has not yet been completed. The buyer and seller are in the process of finalizing the transaction, which typically involves ordering a home inspection, obtaining financing, and completing any necessary repairs or upgrades to the property.
During the pending phase, the property is typically off the market. This means that other buyers cannot make an offer on the property while the sale is pending.
„Under contract“ is another term that is commonly used in real estate. When a property is listed as under contract, it means that the buyer and seller have agreed on the terms of the sale and have signed a contract outlining those terms. This contract typically includes things like the purchase price, closing date, and any contingencies, such as a home inspection or financing.
While the property is under contract, the buyer and seller are working to complete all of the necessary steps to finalize the sale. This includes things like obtaining financing, scheduling a home inspection, and completing any necessary repairs or upgrades.
The key difference between pending and under contract is that under contract means the sale has been legally binding between the buyer and seller, whereas pending simply refers to a phase during which the sale is being finalized.
In some cases, a property may be listed as „pending“ even though it is technically under contract. This can happen because some real estate agents use the terms interchangeably, or because the sale is still in the early stages and the contract has not yet been signed.
In conclusion, it is important to understand the difference between pending and under contract when buying or selling a home. While both terms refer to a phase during which a sale is being finalized, under contract means the sale is legally binding, while pending simply refers to a phase during which the sale is being finalized.