Scroll through home listings for long enough and you'll run into status labels that aren't always self-explanatory. Few things sting more than finding the perfect house only to see it marked "under contract." And if you're selling, you may be wondering what exactly happens between saying yes to an offer and passing along the keys.

Let's clear things up. Here's what three of the most common contract terms really mean, so you'll know exactly what you're looking at.

Under Contract

A home goes under contract as soon as the seller accepts a buyer's offer. At that point, both sides have committed to the sale, and it moves forward once any contingencies are either satisfied or waived.

That said, an under-contract home isn't a done deal. Unexpected issues can still cause the sale to fall apart. In some situations, a buyer can even submit an offer on a property that's already under contract.

Contingent

A contingent home is under contract, but there are still conditions that have to be met before the sale can go through as planned. In other words, the buyer and seller haven't yet fully agreed to carry out the deal.

Some of the most common contingencies involve:

  • The buyer securing financing
  • Inspection findings that turn up costs or problems that are too significant
  • The buyer needing to sell their current home first, or the seller needing to purchase a new one

Put simply, a contingency is anything that has to happen before the sale can proceed. Once those items are resolved, the deal moves ahead. For sellers, contingencies offer a layer of protection if trouble comes up with buying their next home or finding a qualified buyer. They also make sure everything is in place before the transaction heads into escrow.

Pending

A home is pending when the buyer and seller have agreed on terms and every contingency has been met. Typically, the property comes off the market at this point. The sale hasn't closed yet, but pending is the last step before closing day.

It's less common at this stage, but a pending home can still return to the market if a problem pops up with the inspection, the appraisal, or financing.

It Doesn't Have to Feel Complicated

My goal is to make buying or selling a home as simple and stress-free as possible. If you have questions about any part of the process, reach out and I'll be glad to walk you through it.