The language of real estate is full of tricky terms and false phrases. It’s all too common to see someone get important phrases mixed up in the tongue twisting jumble of real estate terms and expressions. Some of the most commonly confused terms are “contingent offers” and “pending offers,” and they often have the biggest consequences when they’re misused, for both the buyer and the seller.
It’s no mystery as to why these two terms are so commonly confused for one another. “Contingent and pending” are practically synonyms in any other situation. But in terms of real estate and making offers on a home, they have a few key differences. Contingent and pending offers both come into play right before a deal on a house has been closed.
When a buyer is out looking at homes, they may come across a home they really like and are prepared to make an offer on. But that home may already have a “contingent offer” on it. Most of the time, the buyer stops there, assuming that the house is already sold, when that couldn’t be further from the truth. If you find a home you like only to learn there is a contingent offer on the home, it’s still possible to make an offer. A contingent offer is an offer that is not yet final, but is pending a number of factors like financing, a home inspection, or reappraisal. Homes that have a contingent offer on them are still on the market, so feel free to make an offer on it yourself, and should the contingent offer fail, you may be in luck!
Pending offers, on the other hand, are offers that have been made and accepted after all contingencies have been fulfilled. There is no counter offering on a pending offer, as the property has practically been sold already.
Knowing the difference between these two commonly confused phrases can be the slight advantage you need to get the home of your dreams. If you’re looking for even more advantages in purchasing your Stephenville real estate, help is nothing but a call or click away!