short sale<\/a> is when a home is sold for less than what is owed on the mortgage. In some cases, a short sale may be preferable to a foreclosure for both the homeowner and lender.<\/p>\n\n\n\n If a home is listed as “contingent: short sale,” it means the seller has accepted an offer to sell for less than what is owed on the mortgage.<\/p>\n\n\n\n
Contingent: Probate<\/h3>\n\n\n\n
When people pass away, their estates may go through probate. This is a legal process that involves distributing deceased people’s assets to heirs. <\/p>\n\n\n\n
If a home is listed as “contingent: probate,” it means an offer to buy has been accepted by the executor. The sale can’t be completed, however, until it is approved by the court.<\/p>\n\n\n\n
What Is Pending?<\/h2>\n\n\n\n
What does pending mean in real estate? If you see a real estate listing that says the home sale is pending, it means all the contingencies have been met, and the sale will soon be finalized. <\/p>\n\n\n\n
Because a pending sale is so close to completion, an additional buyer’s offer may not be accepted, although this is not always the case.<\/p>\n\n\n\n
If you see an active listing that is marked as pending, it could mean one of four things.<\/p>\n\n\n\n
Pending: Taking backups<\/h3>\n\n\n\n
Buyers may occasionally breach their contracts for various reasons. When they do, they will likely lose their earnest money deposits, and there may also be legal ramifications. If a contract looks like it may be breached, the seller may accept backup offers in case the buyer’s offer falls through.<\/p>\n\n\n\n
Pending: Short sale<\/h3>\n\n\n\n
As mentioned, a short sale is when a home is sold for less than what is owed on the mortgage. A “pending: short sale” listing means all contingencies have been met, and the lender still needs to sign off on the deal.<\/p>\n\n\n\n
Pending: No show<\/h3>\n\n\n\n
If a listing states that the property is “pending: no show,” it means no more offers are being accepted, and the seller believes the home sale is on track to close soon. When real estate agents see this, they know not to show the property anymore.<\/p>\n\n\n\n
Pending: More than four months<\/h3>\n\n\n\n
What does “pending: more than four months” mean in real estate? It refers to a listing that is taking a long time to close\u2014typically more than four months.<\/p>\n\n\n\n
There could be several reasons why the sale has been pending for so long, like a delay in meeting a home sale contingency. An inspection contingency, for example, may have discovered something that needed to be repaired.<\/p>\n\n\n\n
A listing that has been pending for more than four months could also be a simple case of forgetfulness. An agent may have forgotten to remove the listing after the home was sold.<\/p>\n\n\n\n
What Is the Difference Between Contingent and Pending?<\/h2>\n\n\n\n
When a property is labeled as “contingent,” it signifies that the sale has conditions or contingencies that must be satisfied before it can proceed to closing. These contingencies can range from home inspections, buyer’s ability to secure financing, or the sale of another property. Essentially, contingent means that there are specific hurdles to clear before the sale is finalized.<\/p>\n\n\n\n
On the other hand, when a property is “pending,” it means that all contingencies have been addressed and met. The sale is just awaiting final paperwork and closing processes. In this stage, it’s typically more difficult (though not impossible) for a new potential buyer to step in, as the sale is pretty much on the verge of completion.<\/p>\n\n\n\n
Knowing the difference between these two statuses can guide a buyer’s actions. A contingent property might still be within reach, while a pending one is less likely to be available. However, in both cases, potential buyers should not be discouraged from inquiring or making backup offers.<\/p>\n\n\n\n
How Does an Offer Go From Contingent to Pending?<\/h2>\n\n\n\n
Generally speaking, a contingent offer becomes pending when all contingencies have been met. If an offer has a financial contingency, for example, the real estate listings will be changed to pending when the buyer obtains a mortgage, assuming there are no other contingencies.<\/p>\n\n\n\n
There may sometimes be delays in seeing the listing status changed from contingent to pending. People get busy, and they may also sometimes forget. <\/p>\n\n\n\n
If you aren’t sure of a home’s pending or contingent status, a real estate agent can find out for you.<\/p>\n\n\n\n
Making an Offer on a Contingent or Pending Listing<\/h2>\n\n\n\n
Although a home may have a contingent offer or a pending listing status, anyone can still make an offer on it until the closing. If you make an offer on a contingent or pending home, it will be considered a backup offer.<\/p>\n\n\n\n
There is no guarantee that you will be able to purchase a home that is contingent or pending. By having a strong offer in place, however, you will be well-positioned in case something happens to the current deal. <\/p>\n\n\n\n
Here are some things you can do to strengthen your offer and help you navigate the home-buying process.<\/p>\n\n\n\n
Use an experienced real estate agent<\/h3>\n\n\n\n
An experienced real estate agent may help you obtain additional information about a contingent or pending property. The agent will also help you submit a competitive bid. Although you will have to pay an agent fee, it may be worth it if it’s an investment property with strong potential.<\/p>\n\n\n\n
Contact the seller<\/h3>\n\n\n\n
Many sellers have strong attachments to their homes, and selling can be emotional for them. After working hard to maintain their homes, they would most likely prefer to see them go to buyers who will take care of them as they did.<\/p>\n\n\n\n
When presenting an offer on a home that is contingent or pending, you may be able to win the seller over by including a handwritten personal letter. Be sure to introduce yourself and explain why the home means so much to you. A personal connection could help your offer stand out.<\/p>\n\n\n\n
Be patient<\/h3>\n\n\n\n
It’s understandable if you are excited about a property. If it’s your dream home or it would make an ideal investment property, you may be eager to close on the deal as soon as possible. <\/p>\n\n\n\n
If you are making a home purchase offer on a property that is currently contingent or pending, however, it’s important to be patient as the process plays out.<\/p>\n\n\n\n
If you are presenting a backup offer, you may have a chance of buying the property if one of the contingencies isn’t met or the buyer fails to close on the deal for some reason. It’s best to be both patient and persistent on these homes in case the contingent offers fall through.<\/p>\n\n\n\n
Sweeten the deal<\/h3>\n\n\n\n
One way your offer can stand out is to sweeten the deal by offering a purchase price that is more than the current offer. You can also make fewer requests from the seller.<\/p>\n\n\n\n
Although some contingencies may not be optional, like a financing contingency or other common contingencies, you may consider skipping on asking for furnishings or appliances, being flexible on the move-out date, and paying all the closing costs. <\/p>\n\n\n\n
The easier you make things for the seller, the more appealing your offer will be if the current deal falls through.<\/p>\n\n\n\n
The Bottom Line<\/h2>\n\n\n\n
If you are looking for an investment home to fix and flip<\/a>, rent, or for something else, overlooking properties that are listed as contingent or pending could be a mistake. <\/p>\n\n\n\nAlthough these properties already have offers that have been accepted, not all of them will make it to the closing. One or more contingencies may not be met, or the buyer may back out of the contract for some reason. <\/p>\n\n\n\n
If there\u2019s a property with great investment potential, it doesn’t hurt to put in an offer on it, regardless of the listing status. In a buyer’s market<\/a>, backup offers are greatly appreciated by sellers. You never know\u2014if your offer is competitive, you may be able to buy the property if the current deal doesn’t go through.<\/p>\n\n\n\n \n \n \n\n
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Step #1: Use Agent Finder to match with top investor-friendly<\/strong><\/em> real estate agents to help you find, analyze, and close your next deal.<\/p>\n\n\n\n
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