Under Contract Vs. Pending What’s The Difference?
Real estate terms such as “under contract,” “pending,” or “contingent” can be confusing for any buyer. This post will debunk the real estate lingo and help you in your search for the perfect property. Keep reading to learn more about the different types of properties for sale and how to navigate each listing type.
Are you interested in a property listed as “under contract,” “pending,” or “contingent” in Denver, Co? Unique Properties, Inc. can help you make a purchase offer that gets you the deal.
Real Estate Process Basics
Real estate transactions have many moving parts. That’s why it can be challenging to handle the whole process independently. Here’s a breakdown of how the real estate transaction timeline:
- Locating A Property – Look through the market for listings that meet your qualifications.
- Making an Offer – Find an experienced real estate agent who can assist you in drawing up a formal contract and submitting a purchase offer.
- Seller Evaluates Buyer Offers – Negotiations begin if the property owner likes your offer.
- Escrow Process – If your offer is accepted, the deal will go into escrow.
- Closing the Deal – When all conditions are satisfied, and both parties agree to proceed with the transaction, the deal closes.
What Does it Mean When a Commercial Property is Under Contract?
When a property is under contract, a buyer’s offer on the property has been accepted by the seller, but the deal is not yet complete. As it stands, the seller has gone into a contractual agreement with the buyer, but before the closing paperwork can be signed, some contingencies must be met.
The agreement is still in its early stages, and some conditions, such as the finance, property appraisal, and inspection contingencies, are still pending on the property. If something comes up with the mortgage or the property inspection doesn’t turn out as expected, a buyer has the opportunity to back out of the deal.
Is it Too Late to Buy a Property in the Under Contract Stage?
The reason why the property is still listed is that sellers want to have backup offers. At this stage, it’s not too late to submit a purchase offer.
What Does it Mean When a Commercial Property is Pending?
A pending listing means that both sides have agreed upon the terms and conditions for the sale. However, there is no contract signed yet. All contingencies on the sale (such as inspections, title searches, and others) have been met.
Under Contract Vs. Pending
If a house is listed as pending, it’s much closer to selling than if it’s under contract. When all contingencies have been met, it becomes a “pending” listing.
At the pending stage, the listing is further along in the transaction process and is no longer active on the market. On the other hand, when a commercial property is listed as under contract, the seller is still open to backup bids.
Is it Too Late to Buy a Property in the Pending Stage?
Once a property gets to this stage, it’s likely that you’ll not get the chance to buy it. However, there is a slight chance that the property will not sell. In this situation, the deal will fall through if the final inspection goes poorly or the buyer cannot finance the purchase.
If you’re seriously interested in a property listed as pending, making inquiries and providing the seller with your contact info can place you in a good position to purchase the property if the first deal falls apart.
What Are Contingencies?
Contingencies are clauses in a real estate contract that state the conditions to be met before a real estate transaction can close. Contingencies help eliminate last-minute disputes.
When a property is listed as contingent, the seller accepts a buyer’s offer, but closing won’t occur until some requirements are satisfied. At this stage, most sellers keep their listings live just in case the conditions aren’t met within the set period. Interested in a property that is listed as contingent? You don’t have to rule it out. Consider submitting a compelling backup offer or writing the seller an offer letter.
Why Are Contingencies So Important?
It is impossible to overstate the value of contingencies. Contingencies ensure that you’re well protected as a real estate buyer. An inspection contingency, for instance, allows buyers a way out of transactions without losing their earnest money. Financial contingencies ensure buyers have enough time to collect the funds required to close on a sale, while appraisal contingencies guarantee that the buyer is getting a fair bargain.
Commercial Real Estate Experts in Denver, CO
Working with a knowledgeable commercial real estate expert is always a smart idea when you’re making an offer on a listing that is pending, contingent, or under contract.
If you have your eyes on a listing in Denver, Co, and need assistance making a competitive offer, the team at Unique Properties Inc. can help you. To get started, get in touch with us online or by phone at 303-321-5888 right away.
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Location – Where is Unique Properties, Inc.?
We’re a local business located just south of downtown Denver in Colorado. Our experienced team is eager to help you with innovative property solutions for owners, investors, and tenants. Our privately-owned firm can offer a personalized experience that no one else in Denver can!