What Is Sale Pending Vs under Contract

When you`re in the process of buying or selling a home, you`ll likely come across two terms: sale pending and under contract. While these terms may sound similar, they have different meanings, and it`s important to understand what they mean so you can make informed decisions when it comes to buying or selling property.

Sale Pending

When a property is listed as “sale pending,” it means that the seller has accepted an offer from a buyer, and the transaction is in the process of being completed. The property is no longer available for showings or offers, and the purchase of the property is pending the completion of certain conditions, such as inspections, appraisals, and financing.

Sale pending can also mean that all the contingencies have been met, and the sale is about to close. Generally, a property is listed as sale pending for a limited amount of time, usually until the transaction has been completed.

Under Contract

When a property is listed as “under contract,” it means that an offer has been made, and the seller has accepted it, but the transaction has not yet been completed. The buyer and seller are legally bound by the contract, but the purchase of the property is still contingent on certain conditions being met, such as inspections, appraisals, and financing.

Unlike a sale pending, a property that is under contract may still be available for showings and offers. However, any new offers made will be considered “backup offers” in case the current contract falls through.

What`s the Difference?

The difference between sale pending and under contract lies in the completion of the transaction. Sale pending means that the transaction is in the final stages, and the property is no longer available for showings or offers. Under contract means that the transaction is still in progress, and the property may still be available for showings and backup offers.

Both terms indicate that an offer has been accepted on a property, but the level of certainty of the sale is different. Sale pending means that the transaction is almost complete, while under contract means that the transaction is still in progress, but there is a legally binding contract in place.

In conclusion, when you`re buying or selling a property, it`s important to understand the differences between sale pending and under contract. Knowing what these terms mean can help you make informed decisions and avoid confusion during the buying or selling process. Remember, sale pending means the transaction is almost complete, while under contract means the transaction is still in progress.