Contingent vs. Pending Explained
In Massachusetts, when you are marketing a seller’s home and procuring a ready, willing, and able buyer to purchase the property, you have hopefully started your journey to a successful closing.
One of the things that Realtors are required to do is change the status of the property when we have a signed contract between a buyer and seller.
Realtors are given one of two options in the Greater Boston Multiple listing service (MLS) when they have a contract. You can either mark the home as contingent or pending.
Maximum Real Estate Exposure explains in detail the meaning of contingent.
It is up to the seller and real estate agent on which way they feel makes the most sense. In most circumstances, deciding which way to mark the status usually comes down to what the Realtor recommends.
Many Realtors just flat-out tell their clients to mark the home as contingent until deep into the home sale process. Doing so is downright foolish! I am in the camp that does NOT give this advice, and here is why.
Most Real Estate Agents Won’t Show Homes Marked Contingent
9 times out of 10, when a buyer’s agent sees a home in the MLS marked as contingent, they will not show it anyway. This makes perfect sense.
Why take the time and effort to show a home that, for all intents and purposes, is under contract?
The only way a buyer could actually purchase the home in a contingent status is if the 1st buyer backs out. Most Realtors don’t want to get a client excited about purchasing a home that, more often than not, is already going to be sold.
The second reason is even more critical to the seller. When you mark a home contingent, the status of the property is technically still considered “current” by MLS standards.
This means that the days on the market continue to elapse when in the contingent status.
Why Are Homes Marked as Contingent in The Multiple Listing Service
The most common reasons for marking as contingent:
The Realtor…