What’s the difference between under contract and pending? These two terms are commonly used in the real estate industry to describe the status of a property sale. While they both indicate that a property is in the process of being sold, there are some key differences between the two.
Under contract refers to a situation where the seller and buyer have agreed on the terms of the sale, and a contract has been signed. This means that the property is no longer available for sale to other potential buyers. The contract outlines the specifics of the sale, such as the purchase price, closing date, and any contingencies that need to be met before the sale can be finalized. At this stage, the seller is committed to selling the property to the buyer, and the buyer is committed to purchasing it.
In contrast, pending is a more general term that refers to a property that is in the process of being sold. This could mean that the seller has received an offer, but the contract has not yet been signed. It could also mean that the property is in the process of being appraised, inspected, or undergoing other necessary steps before the sale can be finalized. During this time, the property may still be listed for sale, and other potential buyers may make offers.
One of the main differences between under contract and pending is the level of commitment from both the seller and buyer. Under contract indicates a higher level of commitment, as both parties have signed a legally binding agreement. Pending, on the other hand, suggests that the sale is still in the works, and there may be additional steps that need to be completed before the sale can be finalized.
Another difference is the timeline. Under contract typically means that the sale is expected to close within a specific timeframe, as outlined in the contract. Pending, on the other hand, can last for an indefinite period of time, depending on the circumstances of the sale.
In conclusion, while both under contract and pending indicate that a property is in the process of being sold, there are important differences between the two. Understanding these differences can help buyers and sellers navigate the real estate market more effectively and make informed decisions about their transactions.
