If you peruse home listings, you may see that some properties are listed as “under contract” or “pending.” If you find a house you like with one of those statuses noted, you may still have a shot at making it your own.
What Does “Under Contract” Mean?
When a house is under contract, that means a buyer has made an offer and the seller has accepted it. That doesn’t necessarily mean that the interested party will buy the house, however.
There are a lot of things that can go wrong. A title search may reveal a lien on the property, the buyer may be unable to get financing because of a low credit score or high debt-to-income ratio, or the house may appraise for less than the agreed-upon price. Any of those issues can cause the deal to fall through.
To hedge their bets, sellers frequently continue to accept offers on their houses, even after agreeing to a contract. That way, if things don’t work out for some reason, the seller won’t have to start from scratch and search for another buyer.
What Is a Pending Sale?
When a buyer and seller agree on a contract, it may contain a series of contingencies. Common contingencies relate to a home inspection and financing, but there may be others. If a contingency isn’t met, the deal can fall apart.
If a sale is pending, that means the parties have agreed on a contract and all the requirements related to contingencies have been met. A house that is listed as “pending” is much closer to actually being sold than one that is listed as “under contract.” There is still a possibility that things won’t work out, but it’s less likely.
If you find a house you like and the sale is pending, you may still have a chance to buy it, but the odds are lower than they are if a property is under contract. At this stage, many seller’s agents will refuse to entertain bids from other potential buyers.
Things Aren’t Always Clear
It’s important to note that real estate agents use terms such as “under contract” and “pending” in different ways in different regions. One or both of these terms may mean something different where you live.
Real estate agents update listings in multiple listing services, but MLSs vary in the terminology they use. Sometimes an MLS doesn’t have a status label available that accurately reflects a house’s status. That can make things confusing if you see a house online that is listed as “under contract” or “pending.”
If you have a question about a house’s status, ask your agent or the listing agent for clarification. You may still have a chance to get the house you want, or you may have to keep looking.
