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Sale Pending Vs under Agreement

When it comes to purchasing or selling a property, there are several terms that you may come across. Two of the most common terms that often cause confusion are “sale pending” and “under agreement.” While both terms indicate that a property is in the process of being sold, they have different meanings. In this article, we will explain the difference between sale pending and under agreement.

Sale Pending

Sale pending is a real estate term that indicates that the seller has accepted an offer from a buyer and is no longer considering offers from other potential buyers. When a property is marked as sale pending, it means that the seller and buyer have come to an agreement on the terms of the sale, and the buyer has likely submitted a deposit. Sale pending properties are no longer actively being marketed, and new offers will generally not be considered.

During the sale pending period, the buyer will typically complete inspections and appraisal and obtain financing. If the buyer encounters any issues during this period, they may be able to back out of the sale. However, if everything goes smoothly, the sale will typically be completed, and the property will be marked as sold.

Under Agreement

Under agreement is another term commonly used in the real estate industry. It means that the seller has accepted an offer from a buyer but the sale has not yet closed. When a property is under agreement, the sale is not yet final, and the property remains on the market. This means that other potential buyers can still make offers on the property.

During the under agreement period, the buyer and seller may work through any contingencies outlined in the purchase agreement, such as inspections, appraisals, and financing. If any issues arise during this period, the deal may fall through, and the property will be put back on the market.

Once all contingencies are satisfied, and the buyer’s financing is in place, the sale will move forward, and the property will be marked as sold.

Conclusion

In summary, sale pending means that the property is no longer actively being marketed, and the seller has accepted an offer from a buyer. The sale is in the process of being completed. Under agreement means that the seller has accepted an offer from a buyer, but the sale has not yet closed. The property remains on the market, and other offers can still be considered.

Understanding the difference between sale pending and under agreement is important for both buyers and sellers. If you are a buyer, knowing that a property is under agreement may give you the opportunity to make a backup offer. If you are a seller, understanding the difference between these terms can help you make informed decisions when it comes to accepting offers and moving forward with the sale of your property.