When it comes to real estate transactions, there are many terms and concepts that can be confusing for buyers and sellers alike. Two terms that often cause confusion are “pending” and “active under contract.” These terms are used to describe the status of a property that is in the process of being sold, but they have different meanings and implications.
When a property is marked as “pending,” it means that an offer has been accepted by the seller, and the transaction is in the final stages of completion. The property is no longer available for showings or offers, and the seller cannot accept any further offers. The only thing left to do is to close the sale, which typically involves finalizing financing, conducting inspections, and preparing the necessary paperwork.
Active Under Contract:
When a property is marked as “active under contract,” it means that an offer has been accepted by the seller, but the transaction is not yet complete. The property is still available for showings and offers, and the seller may accept a better offer if one comes along. However, if another offer is accepted, the current buyer must be given the opportunity to match the new offer or waive their contingency. Until the transaction is closed, the property remains “active under contract.”
The main difference between “pending” and “active under contract” is the level of certainty that the sale will go through. When a property is marked as “pending,” it is almost certain that the sale will be completed, barring any unforeseen complications. In contrast, when a property is marked as “active under contract,” there is still some uncertainty about whether the sale will go through, as the seller may accept a better offer from another buyer.
In conclusion, understanding the difference between “pending” and “active under contract” is important for both buyers and sellers in real estate transactions. If you are a seller, it is important to know which status your property is in so you can accurately represent it to potential buyers. If you are a buyer, knowing the difference can help you make informed decisions about which properties to pursue and how aggressively to make offers.