Understanding Pending and Under Contract Property in Real Estate

Is there a house you want to buy but you see that it is pending or under contract? You do not have to give up on that house just because it is pending and under contract in the real estate market. A house being under contract or pending doesn’t mean it’s off the market. You still have a high chance of owning that home if you play your cards right. 

To understand how that can happen, you must learn the difference between a pending house and an under-contract one. For this purpose, we have provided you with this article which will give you easy-to-understand knowledge regarding such houses. 

The Basics of Real Estate

When you put a property on the market, it is available for anyone to put an offer on it. Your real estate agent is responsible for getting your property on the market, finding the best clients, contacting other agents, and putting up the for sale sign on your front yard.

Understanding Pending and Under Contract Property in Real Estate

As long as the home is available, buyers are welcome to check it out, and the sellers are open to offers. A serious buyer will contact you themselves or through a real estate agent. 

There are times when the buyer might add a contingency to the offer but it is totally up to you to accept it or not. In case you reject the offer, the buyer will respectfully walk away; if not, you can get started on the paperwork immediately.

With your agent’s advice, you can decide how much time you’ll take to consider an offer and whether you should make a counteroffer or accept the offer.

If you’re interested in an offer, you can start negotiating with the seller. You aren’t bound to that particular seller until the sale is final, so it’s okay to consider other options.

A Pending House in the Real Estate Business

The pending sign on a house means that the property has not been sold yet but the property owners are very close to selling it. 

In this scenario, the property has undergone a home inspection, and contract and there are high chances of it getting off the market unless a contingency occurs. 

In case of a contingency, the potential home buyers will be forced to back out of the deal. And have no ownership over the property, making the property available on the market. 

An Under Contract House in the Real Estate Business

If there is a house that you see is under contract, it means that the seller has accepted an offer. Also, the seller is currently in the process of reaching the terms of the agreement over the place.

During the process of settling the documents, the contract is in jeopardy. This means the contract isn’t finalized yet and can be broken if any unforeseen circumstances arise. Even if the offer is discussed and both parties have agreed on one mutual ground, a mortgage is still required to seal the deal. 

In addition, the house will also have to undergo a series of inspections to check if everything is in order and up to standard. There are chances that the buyer might put forth other conditions, such as repairs for the house and other modifications.

If the home inspection doesn’t bring good results, the buyer can reconsider, make a counteroffer, or ultimately back out of the deal.

However, if the house seems to be in good condition but the buyer cannot come through with the mortgage, the seller can have the contract terminated.

Can A Home Be Bought If It's Pending or Under Contract?

By reading the information above, we’re sure you’ve figured out that even if a house has a pending or under contract sign on it, it can still be bought if contingencies arise. No sign would be seen if the house was off the market.

However, under-contract homes are more accessible to buy than pending ones as there are other complications in a pending home, and the deal is almost done.

Can A Home Be Bought If It's Pending or Under Contract

Backup offers are your best bet in such cases. You can make an offer on the house as sellers are open to new offers if the original contract does not go through. That means the seller will choose a backup offer if the current offer doesn’t work. Instead of listing the dwelling on the market again, sellers will consider the backup offer.

Ending Note

If you’ve got the place of your dreams by placing an offer on the pending or under-contract home, then you need to immediately move into the new location. 

But, listing your house and finding the right buyer can be exhausting. That is where we come in as we at Top Cash offer in USA buy your houses directly for cash without any obligation. You don’t have to worry about paying a real estate agent commission or renovating your home. We make everything easy for you and buy your house as-is and offer good cash offers.