If you’ve been in the market to buy a house, you might have noticed that many listings don’t just say “For Sale” next to the price tag. There are several confusing terms like “Pending,” “Contingent,” “Pending. Taking Backups,” or “Contingent. Continue to Show.” If you are a first-time buyer and have no background in real estate, these terms may be confusing, and you could potentially lose a great property. Here’s the breakdown of these terms to help you navigate the realm of real estate.
A contingent status means that the seller has accepted a bid, but it is contingent upon certain criteria that the buyer has not yet fulfilled. Technically, the listing is still active until the contingency has been met. Some common reasons for a contingency status include the house hasn’t passed inspection yet, it is contingent upon the buyer securing financing, or waiting for another property to be sold.
There are several types of contingencies, including “continue to show,” “no show/without kick-out,” and “release/kick-out.”
Contingent. Continue to Show
This is where a bid has been accepted, and the buyer has been given time to meet the requirements of the contingency. In the meantime, the seller continues to show the property to other potential buyers and reserves the right to accept if they outbid the first buyer.
Contingent. No Show/Without Kick-out
The seller has accepted a bid with contingencies but is no longer showing the property to others or accepting any bids.
Contingent. Release/With Kick-out
The seller has given the buyer a deadline to meet the contingency. If the buyer fails to do so, the seller is free to sell the property to someone else.
A pending status usually means that the property has essentially been sold and paperwork and other legalities are pending. Usually, a pending status means your bid will not be able to go through unless the status specifies that the seller can continue showing the property.
Types of pending statuses include “taking backups,” “release/continue to show,” “do not show,” and “over 4 months.”
Pending. Taking Backups
The seller has accepted a bid, but there may be some facts that cause the seller to doubt the buyer’s promise. The seller will accept backup bids in case this deal falls through.
Pending. Release/Continue to Show
The seller has accepted an offer, and all the contingencies have been met, but there is a kick-out for one of the parties. The seller will continue to show the property and may accept bids.
Pending. Do Not Show
At this point, it’s essentially a done deal. The seller will not be showing the property to anyone else. Both parties are waiting on some paperwork.
Pending. Over 4 Months
It has been over four months since the sale of the property. This status will also mention a deadline for when the property may be open to bids again if the buyer doesn’t meet the criteria.
Now that you know the difference between contingency and pending statuses and their various subcategories, you are in a better position to judge when to put in a bid and buy your dream house. For all your real estate needs in Heber and Midway, contact Heber City & Midway Real Estate.