You may encounter some confusing contract terminology when buying or selling a home on the Columbus real estate market. To help you understand the different stages of a home sale, become familiar with these three real estate contract terms: contingent, under contract, and pending. With the explanations below, you can move forward confidently on your home-buying or selling journey.
Contingent: Conditional Agreements
Contingent status refers to a property that has an accepted offer but is still subject to certain conditions before the sale can be finalized. Some common contingencies in Columbus real estate include:
- Home inspection: The buyer may request a professional inspection to identify any potential issues. If significant problems are found, the buyer can renegotiate the terms or walk away from the deal without penalty.
- Appraisal: The lender may require a professional appraisal to ensure the property is worth the amount being loaned. If the appraisal comes in lower than the agreed-upon price, the buyer and seller may need to renegotiate or cancel the contract.
- Financing: The buyer must secure a mortgage to purchase the property. If their financing falls through, the contract becomes void.
- Sale of the buyer’s current home: The buyer may need to sell the property they currently live in before purchasing the new house. If they fail to sell within a specified time frame, the contract may be terminated.
Under Contract: One Step Closer to Closing
When a property is under contract, this means the buyer and seller have agreed on the terms and signed the necessary documents. At this stage, all contingencies have either been satisfied or waived, and the buyer is working toward fulfilling their contractual obligations. This may include securing financing, completing inspections, and obtaining necessary permits. Although the property is not yet sold, the likelihood of the transaction going through has significantly increased by this stage.
Pending: Nearing the Finish Line
A property is considered pending when all contingencies have been satisfied, and the sale awaits closing. The house goes off the market now, and no more offers are accepted. It’s important to note that even at this stage, unexpected issues can still arise, causing delays or even the cancellation of the sale.
For instance, a title search could reveal ownership disputes, the buyer may discover that agreed-upon repairs have been neglected, or the home loan may require last-minute adjustments. Even so, pending status generally indicates that the transaction is moving forward and will likely be completed soon.
Contact Vutech | Ruff, Cutler Real Estate
Understanding the nuances of real estate contract terminology is essential to confidently navigate the Columbus real estate market. After building trust and experience for over 60 years, Vutech | Ruff, Cutler Real Estate, offers the guidance and expertise you need to ensure a smooth home-buying or selling experience. Our commitment to personalized service, local market knowledge, and unparalleled negotiation skills sets us apart. To speak with one of our friendly, experienced agents, please call our real estate office at (614) 897-0618 today.
