09-14-2011 12:26 PM
Why do some MLS listing(s) have either PENDING or CONTINGENT as the Status? What do they mean? Are they the same in definition just a different word is used? How do we know if the home is in the approval process or if in Esrow? I really appreciate everyone's advice!
09-14-2011 01:54 PM
They sound similar and in most situations end up in the sale of the property. Agents set the status and errors do occur at times or perhaps the agent simply doesn't change the status promptly. See below for the definitions of the terms as found in the Redfin Home Buyers Guide: http://www.redfin.com/home-buying-guide/welcome
Another source of information is the Redfin Glossary which defines terms: http://www.redfin.com/real-estate-glossary
The Redfin Home buyers guide defines these as:
Contingent/Under Contract: This means the sellers have accepted an offer on the property, but success may still depend on passing a home inspectionInspection A thorough investigation of a home by a licensed inspector to discover any issues or repairs that need to be made before buying the home. more info or getting financing. It may still be possible to tour these properties and submit a backup offer in case the current one falls through.
Pending: A home that is set to close and all contingenciesContingency Conditions included with an offer on a home that must be fulfilled before the deal can close. If a buyer or seller is unable to satisfy a contingency, then the offer on a home may become void. more info have been waived. This is when the lender, the escrowEscrow A neutral third party or attorney that handles the exchange of money and documents once mutual acceptance is reached on an offer. more info agent or attorney will process the loan and titleTitle A legal document listing the history of ownership of the home. A title report lists all parties with a legal claim to the property, what items need to be cleared from title before the new buyer can take possession, and if there are any easements or encroachments on the property. more info documents to make sure the deal will close on time. Sometimes, the sellers may still accept backup offersBackup Offers An additional offer on a home for sale where the sellers already accepted an offer.more info on pending listings, but it's best to contact to your agent to find out if it's possible to submit this type of offer.
09-14-2011 03:58 PM
09-14-2011 05:13 PM
Contingency covers a lot of items. There's buying contingent upon selling an existing home. There's selling contingent upon buying another home. Then there are loan, appraisal, HOA and inspection contingencies.
Almost all homes sold have contingencies. All cash deals might have an inspection contingency. All cash at the courthouse steps is cash on the spot no contingencies.
09-14-2011 10:59 PM
09-19-2011 06:48 AM
In real life, in this market (San Diego), "Contingent" usually refers to a Short Sale that the owner has accepted an offer on, but the acceptance is contingent on the banks approval of their Short Sale. It usually takes several months for the bank to approve the offer. At that point the MLS status is changed to "Pending". "Pending" usually refers to a property that is in escrow. There may or may not be contingencies in the offer that needs to be removed, ie. Approval of buyers financing, approval of inspection, sale of another house, etc. Houses that are sold conventionally (no short sale, no bank sale, just a standard mortgage that need to be paid off with ample funds from the buyer) usually are not shown as "Contingent".
You might find that other markets use these terms differently.
10-18-2011 01:20 AM - last edited on 10-18-2011 06:27 PM by SheilaM
I agree with fslarry, a contingent status typically is a short sale term for contingent on the lenders approval of the short sale with offer(s) submitted to the lender. Sometimes, 2-3 months for lender approval of price or offer. Once an offer is accepted from the lender the contingent status goes in to pending status, which means escrow has been opened, and no more offers taken. Most of the time the Realtor will still take offers even in a contingent status and will submit it to the lender until the lender accepts one or counters.