There are a lot of terms involved in the real estate transaction. It is imperative to know their meaning to make you a veteran buyer or seller. At the time of buying or selling a house, you work with a real estate agent and keep exploring the homes listed on the multiple listing service. If you know how to list on MLS, you will know that MLS is a big database where the real estate agents and realtors have access to the properties listed.
There can be different statuses of properties on the MLS. A couple of popular statuses are contingent and pending. Here, we will know what they mean and how Contingent vs pending are different from each other.
What is the meaning of Contingent?
A property that is listed as contingent will mean that the seller has accepted the home buying offer. However, they want to keep the listing alive just in case some contingencies come up and the prospective buyer is unable to pull off the deal.
There are many types of contingencies that the home buyers may include with their offers. They may include a home inspection contingency, financing contingency, appraisal contingency, and more.
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What is the meaning of Pending?
In the case of a property listed as pending, it means that all the provisions on a contingent property were met and the sale is now under the process. The pending status means that the seller and seller’s agent are sure that the sale has moved a step ahead and may close in some time.
Common Contingent Statuses
Before we know about Contingent vs pending, let us focus on knowing the different types of subcategories of the contingent.
Continue To Show or CCS
If there is a listing that is registered under the subhead called Contingent: Continue to Show or CCS, then it means that there are multiple contingencies that may need to be answered. In this type, the seller and the seller’s agent decide to keep to property live. This status also allows them to accept a better offer from another buyer.
Contingent: No Show
In this type of contingency status which is called Contingent: No Show, the seller does not want to show the property or accept any other offer. This situation shows that the seller is confident that in the future, the contingencies which are still there will be met.
Contingent: With or Without a Kick-Out Clause
Now, there can be the contingent status which shows a condition called a kick-out clause, which will mean that the buyer needs to fulfill all the contingencies within the deadline. So, this clause sets a deadline, otherwise, there is no deadline in place. One can also say that the seller can take the time to meet all the contingencies as per the buyer’s offer.
Short Sale Contingent
In this type of contingency called the short sale, the seller which can be a bank or a mortgage lender communicates that they are ready to accept lesser money compared to what is owed on the mortgage. This process takes a long time to complete, sometimes months. This contingent status also means that the home is not for sale as the buyer’s offer is accepted. However, the short sale is in the process.
Contingent Probate
The Contingent Probate status happens as a result of the death of the homeowner.
There are other contingencies too such as:
- Financial Contingency: This happens when a buyer does not get a home loan or mortgage.
- Appraisal Contingency: This is when the appraisal shows that the home is not worth as much as the offer, and then the buyer can opt-out.
- Inspection Contingency: If a home inspection reveals problems with the home, the buyer can expect repairs or compensation or move out of the deal.
- Title Contingency: If a title report is conflicting and the ownership status is not clear, the buyer does not move ahead.
- Home sale contingency. If the buyer cannot sell the house where they are residing within the given timeline, they can end the contract and buy the new one.
Common Pending Statuses
Now, let us know all about the different subcategories of pending statuses as well.
Pending Taking Backups
The condition which is referred to as Pending: Taking Backups status, means the real estate listing is still pending and the seller is showing the house. the seller is also ready to accept the backup offers.
Pending Short Sale
Just like Short Sale Contingent status, even the pending Short Sale means that the property is going through the short sale process where the mortgage holder is involved. The Pending Short Sale status also means that the property is on the way to processing but not accepting any backup offers.
Pending: More Than 4 Months
As the name says, the Pending status of More Than 4 Months means that the listing in the MLS has been pending for more than 4 months. This may mean that the pending sale transaction is taking longer than it should. It may be a result of something or the condition in which the real estate agent has forgotten to change the status.
Making an offer on a Contingent property
If you are interested in a property that is listed with an active contingent status, then you can send the offer. While the original offer may be prioritized and completed if all the contingencies are fulfilled, your offer still stands a chance. Going through a Flat Fee MLS Listing service makes the process even more, simpler and fast. They help you in finding the best offer possible for your home. Making an offer can put you at the top of the line, just in case the original deal does not pull through.
But what you need to know is that you must make the offer more attractive than other bids. This will attract the seller.
Making an offer on Pending Home property
A property that shows a pending status on the MLS means that it is under the transaction process. If you are interested in that home that is pending, you are allowed legally to make an offer. The owner and listing agent will decide whether they still want to get offers or not. It is suggested that you speak to the listing agent and check whether it makes sense to send an offer.
Contingent vs pending
Knowing how to list on MLS is not enough. You should also know about the terms like Contingencies and Pending sales and the difference between them.
When a property is marked contingent, it means that the seller has agreed to an offer but there is one of the listed contingencies statuses. When the original contingencies are met and they are satisfied, the listing becomes pending. The buyer and seller can wait till the deal finally closes. There are pending listings too that can still accept the backup offers. However, it is unlikely for the pending deals to fall through. But in Contingency, you have better chances of acceptance.
