When searching for a new home, you may come across listings that are labeled as “under contract option pending.” This can leave many potential buyers confused about what that means for the property and whether it`s still worth considering. In this article, we`ll explain what it means when a house is under contract option pending and what you should know before making any decisions.
What is an Option Pending Contract?
An option pending contract is a type of real estate contract where the buyer has the option to purchase the property at a predetermined price within a specified timeframe. This option is usually granted to the buyer for a fee, which is paid upfront and goes towards the purchase price if they choose to exercise the option.
In most cases, an option pending contract is entered into when the buyer needs more time to secure financing or complete other required tasks before committing to the purchase. During this time, the seller is typically prohibited from accepting any other offers and must wait for the buyer to exercise their option or let it expire.
What Happens During the Option Pending Period?
During the option pending period, the buyer has the exclusive right to purchase the property at the agreed-upon price, as long as they exercise their option within the timeframe specified in the contract. However, this doesn`t necessarily mean that the transaction will proceed smoothly.
The buyer may still need to complete some tasks during this period, such as securing financing or conducting inspections. If they find any issues with the property during this time, they may be able to negotiate with the seller to have them addressed before moving forward with the purchase.
What Does Under Contract Mean?
When a house is under contract, it means that a buyer has made an offer that the seller has accepted. However, this doesn`t necessarily mean that the sale is final. Typically, there are still several steps that need to be taken before the transaction can be completed.
During this time, the property is considered off the market, and the seller is typically prohibited from accepting any other offers. However, the buyer still needs to complete several steps before the sale can be finalized, such as completing inspections, securing financing, and negotiating any repairs or renovations that need to be made.
Is It Worth Considering a House That`s Under Contract Option Pending?
If you`re in the market for a new home and come across a listing that`s under contract option pending, it`s still worth considering. While there`s no guarantee that the sale will go through, it`s possible that the buyer may not exercise their option, which would put the property back on the market.
However, it`s important to keep in mind that the option pending period can last anywhere from a few days to several weeks or even months. If you`re in a hurry to find a new home, it may be best to focus on properties that are currently available and don`t have any pending contracts.
In conclusion, when a house is under contract option pending, it means that the buyer has the option to purchase the property at a predetermined price within a specified timeframe. While this doesn`t necessarily mean that the sale will go through, it`s important to understand the terms of the contract before making any decisions about whether to consider the property.
