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Lauren Philley

What are the differences between option pending, pending-continue to show, and pending?

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What are the differences between option pending, pending-continue to show, and pending?

By Lauren Philley   
Posted on Oct 13, 2017 in Topic: General
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Asked by: Consumer
Posted: 1 month ago
Topic: General
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Bronze
Yvonne Chauvin
about 1 month ago
Hi Lauren,

Option Pending means that the Seller has accepted the Buyer's offer, but the Buyer is still under the option period, which is a unilateral contract, during which only 1 party is obligated to perform- the Seller, and the Buyer has unrestricted right to back out of the contract.

Pending Continue to Show means that is under contract but the seller is still allowing showings for back-up.

And lastly "Pending" means that property is under pending contract, generally just waiting for closing.

Hope this helps,
Thank you,

Yvonne Chauvin
Better Homes and Gardens Gary Greene
281-686-0143


about 1 month ago
Bronze
Courtney Farmer
about 1 month ago
Hey Lauren! Each home is going through something different. If you would like to know what a particular property has going on give me a call and we can talk about how to get your answers in today's market. 713.725.1637 Or Courtney.L.Farmer@remax.net.
Hope to talk to you soon!


about 1 month ago
Bronze
Wendy Johnson
about 1 month ago
**Option Pending** - Listings that are under contract and the seller and buyer have agreed to use the “Termination Option” in paragraph 23 of the standard TREC contract.
**PS - Pending continue to Show** - Used for listings currently under contract but are still available to show. Listings having a contract with a contingency and taking back-up offers should be Pending Continue to Show.
**Pending** - Pending Used for listings under contact and are no longer available to show or under the option period.


about 1 month ago
Bronze
Greg Bennett
about 1 month ago
All previous responses (3) are accurate when differentiating between the statuses mentioned. I believe some important points need mentioning that may assist buyers better understand the intricacies of the Texas Real Estate contract. In my opinion these contracts favor the buyer in regards to opportunities to terminate and protections. After all they are the consumer and laws are designed to protect from unscrupulous vendors. In my 17+ years as a Texas Realtor I have never seen someone "forced" into buying a home. On the other hand I've seen on many occasions a seller forced to sell. The Texas contract has many opportunities for the buyer to bail: the first and easiest is during the Option Period. This is typically the first few days into a contract where buyer pays a nominal fee (on top the earnest money usually $200 or so depending on transaction) for a specified period of time, typically 10 days. During this period the buyer "vetts" the property with their inspector(s) of choice. Once all the reports are gathered the buyer may approach the seller and ask for compensation of findings and/or make repairs. Seller is not obligated to change the contract or make repairs but they typically "renegotiate" the issues if any. If they don't come to agreement the buyer may terminate and the earnest money is refunded to buyer. This must occur before option period expires at 5PM on the pre-determined date on the contract. Once this period passes the contract becomes "Pending." If listing agent and seller agree to list as "Pending Continue to Show" it changes nothing for the buyer, only keeps the listing status up for continued showings.

One more point: The asterisk* next to the status Letter of A* P* or PS* is important. This means the contract is CONTINGENT on buyer selling their current home. Another buyer can come along and "bump out" the current contract. Buyer has opportunity to waive Contingency but usually can't as they need to sell in order to buy.


about 1 month ago
Gold
Mark McNitt
about 1 month ago
Hello Lauren,

Option Pending (OP) - Home has a signed contract. Buyer has the "option" to terminate the contract for ANY reason. Typically inspections are done during this time period. Typically 7-14 days after a contract is signed is the length of this period.

Pending, Continue to Show (PS) - Home has a signed contract and now is beyond the Option Pending period. This is what is typically noticed by most Buyers online. What it does NOT show is "...for backup". Why would the Sellers what the home to be continued to be shown? Because the contract has a contingency for issues to be cleared before closing. #1 is a mortgage still needs to be approved. Other contingency points might include title issues, an appraisal, etc. If the contract is contingent on the sale of the Buyer's home, the PS* will show an asterisk.

Pending (P) - Contract on a home is clear of all contingencies and is ready to close. Once a home's status is changed to Pending, the home drops off the HAR.com site and the Internet in general. For all purposes, the home is sold and all that is left is signing documents.

Buyers get disappointed when the home "they love" turns pending on the Internet. There is still a chance to get that home, but you must be prepared with a strong lender letter, be prepared to make a full or more than full price offer and give up other items to sway the Sellers not to work with the current Buyer. If the Buyer that currently has an offer on that home terminates during the Option Period (OP), then the 2nd Buyer's contract that has been signed falls into place. Otherwise, you simply watch on the sideline and hope the 1st Buyer's contract does not work out.

Mark McNitt
832-567-4357
MarkKnowsHouston.com
Bernstein Realty


about 1 month ago
Bronze
Gabrielle Davis
about 1 month ago
Great question! Option Pending (OP) simply means that the buyers agent negotiated a period of time that the buyer can do some due diligence like a home inspection, home insurance rates, etc. This period typically has a small cost associated with it. This cost can vary; however, for the average home it should run $100-200. The time period can vary as well but around 10 days is again typical. During this period, the buyer can walk away for any reason without risk of losing the earnest money. The option money will be lost. If they continue on to close, the option money is typically credited as closing to the buyer....another item that is negotiated.

Pending, Continue to Show (PS) - The option period above has past and the seller has decided that they will continue to show the property and will take backup offers. In most cases buyers do not typically view these homes. One reason being that they will need to sit and wait, hoping that the deal falls through for some reason. Once past the option period, the chances that this happens is low. Most buyers are in the situation where they need to find a home at that time and so the waiting involved here may not work with their time schedule.

Pending (P) - Past the option period and waiting to close without any additional showings. Until the actual closing day there is always a possibility that the deal may not go through. One example is that if the buyer loses their job and can no longer qualify for the loan. Again, not likely but it can happen.

When my buyers truly love a home that is either PS or P I will track it and notify them immediately upon that property becoming active again. This way if they still have not found another home we can submit a contract immediately. I will also let the listing agent know that my client is interested if the deal does not go through.
Hope this was helpful! Any questions, feel free to contact me on my cell - 303-815-9455

Gabrielle


about 1 month ago
Bronze
Suzanne Lobodin
about 1 month ago
Hello Lauren!

Good question. Pending with option - The buyer has written into the contract that there are a certain number of days in which the buyer can do their research (home inspection, insurance quotes, etc) and they can back out of the contract within the days specified without recourse.

Pending continue to show - An offer has already been executed and passed the option period, and the seller is still willing to allow the home to be shown in hopes of back up offers.

Pending - The contract has completed the option period, and buyer and seller are awaiting the closing date.

Have a great day! Suzanne



about 1 month ago
Bronze
Zelda Cain
about 1 month ago
Option pending means the home has a contract that has been accepted but the buyer now has to option to back out of the contract for any reason during the negotiated time period. this is usually when the buyer has their inspections done, drive through the neighborhood, speak with the neighbors and do their due diligence to make sure they really want to purchase the home. Once the option period ends the home usually goes into pending continue to show. This means the buyers based on the terms of the contract the negotiated time for buyer approval for the loan has not been met yet. The seller wants to keep the option to find other buyers just in case the buyer is not final approved for their loan. Once the option period has ended and the time has expired for the buyer to be approved for the loan the home goes into the pending status. This means the home is likely to close however the buyer is waiting on final approval from underwriting. I hope this helps.


about 1 month ago
Diamond
Darby Grimmett
about 3 weeks ago
Hi Lauren,

Here is the general break down for each status:

The different pending options are as follows:

OP: Option Pending - The sellers have accepted a contract. This period is the time the buyers continue their due diligence and complete inspections. The buyer pays for this option period and in return has the unrestricted right to terminate at any time for any reason. Any repair amendments should also take place within this period. I watch properties very closely in the option period.. sometimes you see them go back active pretty quickly due to buyer change of heart.

PS: Pending continue to Show - For reasons determined by the seller, they have continued to show the home although a contract has been accepted and through the option period. Sellers may choose to keep showing the home if there is a contingency or while waiting for final financing approval as determined in the Third Party Financing Addendum.

P: Pending - Option period complete, contract is waiting to close. No showings will be allowed through CSS.

I'd be happy to check on a specific property you want more information on. Feel free to send it my way!

Darby Grimmett
Keller Williams
darby@darbygrimmett.com
936-827-9217


about 3 weeks ago
Bronze
Mercedes Clarke
about 1 week ago
Hi Lauren --
All these terms can get confusing but you have a great concern. Option pending is the period (optional but very recommended) when the buyer does their due diligence : secure financing, inspections, appraisals, etc. The buyer pays for this option period. It is also the period the buyer has the option to back out of the contract. Of course, you do not get the option money back. Option pending - continue to show is when the seller continues to show the home even after the offer has been accepted in hopes of getting back-up offers just in case the first one falls through.


about 1 week ago
Bronze
Ryan Kohn
about 1 week ago
Lots of great advise here, to expand. Real estate is never off market until it's closed. So, while "Active" status is best to look at if your wanting to buy, the various pending stages are not necessarily out of the question.
Active- means the home is actively for sale and you can, with few exception view the home to consider making an offer.
The various stages of Pending means a buyer has made an offer and the seller has accepted it. This becomes a binding contract between buyer and seller which will require performance from both parties. Default or other circumstances that can cancel the contract can and do happen, so they aren't necessarily off the table yet.
Option Pending means the contract accepted contains an option period that has not yet ended. This time is typically used for home inspection purposes and repair bids so that buyer can ensure the amount offered is still worth while.
Pending-continue to show - means while the property is under contract, sellers would like to continue to show the home in an effort to obtain back up offers or at least other interested buyers in the event the current contract falls through. This can happen just because the seller would like to have peace of mind or there may be a higher risk due to buyers qualifications, contingencies or other reasons.
Pending just means that there is a contract with no or a completed option period and final stages of closing are in process.
If you have found a home in a pending status that you feel is really a great fit, if its Continue to show, see if your realtor can set up an appointment. Any other pending status, bookmark it for notifications or better yet, have your Realtor watch it for you.


about 1 week ago
Bronze
Christopher Dayanand
about 2 days ago
Many agents above have clearly detailed out the differences on each pending status.

When I am helping my buyers, I just ignore any pending status houses. There are plenty of houses that will meet a buyers needs and wants.

There are many times a house comes out of pending status due to inspection, appraisal and buyers foolish mistake like making a huge purchase just before closing which has a huge impact on their debt to income ratio.

Chris
Coldwell Bankers
832.859.8698


about 2 days ago
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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