When it comes to buying or selling a property, there are various terms used to describe the status of a deal. Two of the most common terms are “pending” and “under agreement.” However, many people tend to confuse these two terms, assuming they mean the same thing. In reality, there is a significant difference between the two.

What does pending mean?

The term “pending” is used to describe a property that is under contract and has gone through the negotiation phase. It means that the parties involved have agreed to the terms of the deal, and the transaction is in progress, but it has not yet closed.

In other words, pending means the seller has accepted an offer from the buyer, and both parties are working towards completing the deal. During this phase, inspections, appraisals, and other contingencies may take place before the closing.

What does under agreement mean?

The term “under agreement” is similar to pending, but the main difference is that under agreement properties have not yet reached the pending stage. Under agreement means that the buyer and the seller have agreed to enter into a contract, but the deal has not yet been finalized.

The under agreement status is a preliminary stage of the transaction. The buyer might still have to do some research or inspections, and the seller might still have some reservations about the deal. Hence, the contract is still not binding, and either party can choose to back out of the deal.

What are the key differences between pending and under agreement?

The main difference between pending and under agreement is that pending properties have gone through all the contract negotiations, and the deal is in the final stages before closing. While under agreement properties are still in the preliminary stages, and the terms of the contract might not have been agreed upon yet.

Another difference is that pending properties are typically considered to be off the market, meaning that the seller is not open to any other offers. However, under agreement properties are still active listings, meaning that the seller can still accept other offers.

In conclusion, it is important to understand the difference between pending and under agreement when buying or selling a property. If a property is pending, it means the deal is almost complete, and the parties are awaiting the final closing. While under agreement means that the parties have agreed to enter into a contract, but the deal is still in the preliminary stages. Understanding these terms can help you navigate the home-buying or selling process and avoid any confusion with your real estate agent.