We just had a walk-in ask what it means to have "Contract Pending" or "Under Contract" on one of our real estate signs. So, if they didn't know, there is a good chance there may be more people that don't know. When I explained it, she asked "so, it is sold?" No, it isn't sold...yet.
Contract Pending or Under Contract means an offer was made that was acceptable to the seller and a contract was written and agreed upon between the parties. However, contracts have contingencies. Which means the purchase is contingent on some things being met. These are all spelled out in the contract. Such as financing. If the buyer has not been qualified for a loan, they have an amount of time to get qualified. If they cannot get a loan and cannot come up with the cash to buy, the sale does not go through.
Inspections and Appraisals can also affect the outcome. If inspection reveals something the buyer cannot live with and it cannot be negotiated in some way with the seller to make repairs or some price adjustment, then the buyer can get out of the contract. If the property does not appraise for the contract price, there is also no sale unless the buyer wants to come up with the extra funds over the appraisal to meet the contract price negotiated.
Long story, many variables-short version: there are several things that can prevent escrow from closing on the property during the course so to say it is "sold" before closing, we typically do not do. You will not see a sold sign on our listings until after it has closed escrow and the keys are in the new buyers hands.
So, if you have seen a house you are interested in, and it says "Contract Pending" or "Under Contract", please check with us to see if it looks like it is going through as you could still make an offer, possibly. Many sellers will take "back up offers" just in case, so don't be afraid to ask. We will however, not share any terms of any agreements currently in place between buyers and sellers.
Mary Welch-Broker/Owner Preferred Choice Realty of Harper, Ks.
Member Wichita Area Association of REALTORS, Kansas Association of REALTORS, National Association of REALTORS
It's not SOLD until it's SOLD!