What Is The Difference Between Option Pending And Pending Continue To Show?

Understanding the Real Estate Jargon

When it comes to buying or selling a home, the real estate world can be filled with confusing terminology. Two terms that often cause confusion are “Option Pending” and “Pending Continue to Show.” These terms are commonly used in real estate listings, but what do they actually mean? Let’s dive in and explore the difference between these two phrases.

Option Pending: An Agreement with a Contingency

Option Pending is a term used to describe a stage in the home buying process where a buyer and seller have entered into a contract, but the sale is still contingent upon certain conditions being met. These conditions typically include the completion of inspections, appraisal, and financing. During the Option Pending period, the buyer has the right to terminate the contract if these conditions are not satisfied.

This stage is often referred to as the “option period” because the buyer typically pays a small fee to the seller for the option to terminate the contract within a specified period of time, usually 7-10 days. If the buyer decides to move forward with the purchase, they will proceed to the next stage, which is “Pending.” However, if the buyer chooses to terminate the contract within the option period, they can do so without any penalty and their earnest money will be returned.

Pending Continue to Show: A Sale in Progress

On the other hand, when a property is listed as “Pending Continue to Show,” it means that the seller has accepted an offer and the sale is in progress. Unlike Option Pending, there is no contingency or option period during this stage. The buyer and seller have already reached an agreement, and the transaction is expected to proceed smoothly without any further negotiations or inspections.

However, the property is still shown to potential buyers during this time. This is because the seller wants to keep their options open in case the current deal falls through. The seller can continue to show the property and consider backup offers in case the initial offer does not go through. In some cases, a seller may even accept a better offer and switch to that buyer, even though the property is already marked as “Pending Continue to Show.”

Key Differences: Contingencies and Showings

The main difference between Option Pending and Pending Continue to Show lies in the contingencies and showings. Option Pending has contingencies in place, giving the buyer the option to terminate the contract within a specified period of time. On the other hand, Pending Continue to Show means that the sale is in progress without any contingencies, but the property is still shown to potential buyers.

For buyers, Option Pending provides a level of protection and allows them to back out of the deal if they discover any issues during the inspection or appraisal process. On the seller’s side, marking a property as Pending Continue to Show allows them to keep their options open and potentially secure a backup offer in case the current deal falls through.

Conclusion

Understanding the difference between Option Pending and Pending Continue to Show is essential for both buyers and sellers in the real estate market. While Option Pending provides flexibility and contingency for buyers, Pending Continue to Show allows sellers to explore alternative offers while a sale is in progress. By familiarizing yourself with these terms, you can navigate the real estate process with confidence and make informed decisions when buying or selling a property.