Whats the Difference Between Active Contract and Pending in Home Buying

As a homebuyer, you've probably come across the terms "active contract" and "pending" in your search for the perfect property. In simple terms, an active contract means the seller has accepted an offer from a buyer and they're moving forward with the sale.

The key difference between active contract and pending is that a pending sale is still in the process of being finalized, whereas an active contract has already been accepted by both parties.

When a property is marked as active contract, it's usually because the seller has already signed a contract with a buyer and they're waiting for the sale to be completed, often within a certain timeframe. This can be a good sign for potential buyers, as it means the seller is serious about selling the property.

In a pending sale, the seller has accepted an offer, but the sale hasn't been finalized yet. This could be due to various reasons, such as the buyer needing to secure financing or the seller needing to complete repairs.

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Active under contract and pending are two statuses you'll often see in real estate listings. The chief difference is that active under contract means some contingencies must be settled before a sale can be made, while pending indicates that sale closure is imminent.

In real estate listings, active under contract is often used interchangeably with contingent, meaning steps must be taken before the sale closes. This status creates a legally binding agreement between the buyer and seller, outlining specific conditions that must be met for the sale to go through.

A property listed as active under contract may accept backup offers since it's not yet finalized. However, a pending listing is less likely to accept backup offers as it appears closer to being completed.

Here are the key differences between active under contract and pending:

A pending listing means that both sides have agreed upon the terms and conditions for the sale, and all contingencies have been met. This typically means that the sale is likely to go through, barring any unforeseen circumstances.

As a buyer, navigating the buying process can be overwhelming, especially when dealing with properties that are Active Under Contract or Pending. It's essential to research recent comparable properties within the same area to make an accurate assessment of value.

To make an informed decision, gather all relevant information about the property from the listing agent. This will help you understand the current landscape of available properties and identify potential issues that could impact the deal.

Buyers should also check if any contingencies are in place, such as inspections or financing, and be aware that it's not too late to submit a purchase offer even if the property is listed as Under Contract.

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As you start your home buying journey, you may come across listings that are labeled as "Active Under Contract" or "Pending". This can be confusing, especially if you're new to the process. It's essential to understand what these terms mean and how they affect your search.

Research recent comparable properties within the same area to make an accurate assessment of value.

Buyers should also check if any contingencies, such as inspections or financing, are in place and could impact the deal. Gathering all relevant information about the property from the listing agent is crucial to making an informed decision.

The length of the contingency period can range from a few days to several weeks, with an average of 30 days when market conditions are normal, and sometimes up to 60 days.

To navigate these listings, buyers should check the local market conditions and understand the current landscape of available properties. This will help you make an informed evaluation when considering a property that is Active Under Contract or Pending.

It's also essential to get all information related to the property from the listing agent so you can make sure you're making an informed decision.

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If you're considering making an offer on a property that's already in the under contract stage, it's not too late to submit a purchase offer. Sellers often list properties at this stage to have backup offers, so you can still make your move.

The under contract stage is a common occurrence in the buying process, and it doesn't necessarily mean the deal is set in stone. In fact, sellers may still consider alternative offers if the original deal falls through.

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The under contract stage is a crucial part of the selling process where the homeowner has accepted an offer from a buyer, but the sale is not yet finalized.

Both parties have agreed on the terms of the contract, including the purchase price, obtaining financing, any additional sale contingencies, and closing date.

The contract outlines all the specifics, ensuring a smooth transaction between a buyer and seller.

In this stage, the property is removed from the market and the seller cannot sign on with another buyer.

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The buyer has the opportunity to back out of the deal if something comes up with the mortgage or the property inspection doesn't turn out as expected.

There are two types of under contract properties: contingent under contract and noncontingent under contract.

The buyer and seller are still in the early stages of the closing process, and some conditions, such as the finance, property appraisal, and inspection contingencies, are still pending on the property.

The property is considered active under contract, indicating that the seller has accepted an offer but is still open to backup offers in case the current deal falls through.

In this stage, the buyer's offer will likely be marked as "under contract" or "in contract" in the MLS, and other interested buyers will usually be informed that the home is no longer available.

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The pending sale stage is a later stage in the process, when all contingencies outlined in the contract have been met or waived.

Both parties make final preparations to execute the sale, including finalizing the financing, preparing all additional documents, and coordinating the sale with all parties involved.

The sale might still fall through, but the probability is much lower.

In this stage, the property is typically removed from the market and is no longer available for showings.

A pending listing does not accept backup offers, as it is under contract and ready to close.

At this point, the sale is likely to go through, barring any unforeseen circumstances.

The buyer makes final preparations to secure financing, which is a crucial step in the pending sale stage.

All additional documents are prepared and coordinated with all parties involved, including lenders, escrow agents, and title companies.

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As you browse through listings, you may come across properties that are labeled as "active under contract" or "pending." These two terms are often used interchangeably, but they have distinct meanings.

The main difference between the two lies in the level of commitment from both the seller and the buyer. "Active under contract" means that some contingencies still need to be settled before the sale can be finalized, whereas "pending" indicates that all contingencies have been satisfied or waived.

Here's a comparison of the two:

Understanding these differences is crucial for buyers and sellers alike. As a buyer, knowing whether a property is under contract or pending can guide your expectations regarding the availability and likelihood of a successful purchase.

Active under contract and pending are two terms you'll often see in real estate listings. The main difference between them is that active under contract typically means there are still contingencies left to clear before the deal is finalized.

A property listed as active under contract may accept backup offers, but this is less likely to happen with a pending listing. This is because pending listings are closer to being completed, so there's less room for negotiation.

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Here's a key point to keep in mind: the terms "under contract" and "pending" can sometimes be used interchangeably, but they usually mean different levels of progress in the home sale process.

The difference between active under contract and pending is that the former means some contingencies must be settled before a sale can be made, while the latter indicates that sale closure is imminent.

If you're interested in a property that's active under contract, you can make a backup offer, which puts you in line for consideration if the deal with the buyer falls through.

Here's a summary of the key differences between active under contract and pending: