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If you need more living space, but don’t have the property (or the budget) to put an addition on your home, it may be time to take a closer look at your garage. Whether it’s attached or free-standing, a garage conversion can be a relatively quick and affordable way to expand your current home.

The cost and amount of work involved in turning your garage into usable living space will depend on its size, current condition, the purpose of the remodel, and where you live. Read on for a closer look at what’s involved in a garage conversion, including design ideas and estimated costs.

Do Garage Conversions Add Value?

You may define value in myriad ways, but one of the most important considerations in converting a garage is what value it might add to your life. If you have a big family, you might want more space — perhaps a quiet, child-free zone where you can enjoy some quiet time. Or, you may want to convert a garage into a playroom where your children can keep their toys, decluttering your main house.

If you frequently have house guests, building a garage apartment or in-law suite can function as extra living space for friends and family to use when they’re in town.

A garage conversion can also add monetary value to your home, since you’re adding to the total livable square footage of your home. You can generally expect to get about 80% of what you spend on a garage conversion back when you sell your home (known as your return on investment, or ROI). To get an idea of the ROI of a garage renovation in your area, you may want to use a free online home improvement ROI estimator.

Adding Living Space to a Converted Garage

How you use a converted garage space depends on whether it’s attached to your house or a freestanding structure. If the garage is attached, you could create a room that becomes part of your home. This might be a recreation room, a workout room, a family room, a home theater, an extra bedroom, or a multipurpose room.

If your attached garage is connected to your kitchen, you might consider expanding your kitchen into a home chef’s paradise or creating an open-concept dining and entertaining area.

A detached garage could also become an apartment for your child as a young adult. Or, you might turn it into an art studio or a home office. The options are virtually endless. So a good first step is to figure out how a converted garage might provide the most value for your family.

Converting a Garage to an Apartment

If you’ve decided to convert your garage into an apartment, whether to create an in-law suite or a private space for your older child, you’ll want to consult your local planning board to find out what permits, if any, are needed. Often, if you’re building a new structure or making modifications to existing structures, a permit will be required. In fact, it’s important to double-check whether a permit is needed even for light remodeling.

Before you begin converting your garage, you might want to map out where everything is going to go and what you’ll do with the items that are currently in the space. To streamline that process, you could divide the items into one of three categories:

•   Keep

•   Donate

•   Throw Away

Once you’ve donated and thrown away items, it’s time to determine where you want to store the remaining items. Do you have a basement or attic where you can pack away everything you’ve stuffed into the garage over the years? How can you make those areas more storage-friendly?

If you still want to use a portion of your garage for storage after conversion, you might think about how to partition off that section so that the rest of the garage looks attractive and not cluttered. If you don’t want to use your garage for storage after the conversion, you might consider building an outdoor shed (provided your HOA or neighborhood association allows it) where you can items you don’t need on a regular basis.ws it, in which to store your remaining belongings, or a remote storage unit for things that you’ll rarely need.

Garage Floors and Doors

Deciding what to do with garage floors and doors is a crucial part of a garage conversion. If you have a traditional garage, the flooring might be a concrete slab with no insulation. In addition, the garage floor may fall several feet below the floors in your home, sloping toward a floor drain or the garage door, in which case you’ll need to have the floor leveled.

Then there’s the garage door to consider. If you remove it, you’ll likely have a large, gaping space. You might want to install a wall with french doors to let in the light or create a new wall that contains a large bay window. What you do might depend on whether or not you want the spot where the garage door existed to be an entryway.

Garage Roofing, Ventilation, and Insulation

Before beginning a garage conversion, you’ll want to check that the garage roof is watertight. If it’s not, some roofing upgrades could be necessary. If the plan is to install a kitchen or bathroom in your converted garage, you may also need to address ventilation issues. To create a comfortable space, you’ll also need to ensure there is proper insulation in the walls, roof, flooring, and anywhere else it’s needed.

Garage Windows and Walls

In order to create walls, you may need to install stud framing and drywall. In addition, you may need to put insulation and moisture-proofing, as well as wiring, in the walls. Also consider whether you want to add closets to your converted garage. If so, now is the time to lay those out.

One way to make a garage quickly feel like home is through access to natural daylight, which can be achieved by installing large windows strategically throughout the space or punching holes in the ceilings to install skylights. Consider using window styles that match those on your home to give it a cohesive look, especially with attached garages.

Garage Heating, Plumbing, and Wiring

If you have an attached garage, consider whether your current HVAC system can heat and cool your converted space. You may want to think about supplementing what you currently have, whether through a floor heating system, electric baseboards, wood stoves for the winter season, or an air-conditioning unit to cool off the space in the hot, sticky months of summer.

With plumbing, consider how to run pipes to supply water to the garage, as well as how to effectively drain the water back into the sewer system. If you need to add plumbing to the new space, this could be one of your bigger expenses.

What It Costs to Convert a Garage

How much it will cost to convert a garage into a living space will depend on what you will use the space for, the size of the garage, and the materials you choose. You could spend anywhere from $1,500 to $60,000 on a garage conversion.

To convert a garage into a bedroom, for example, you may need to spend around $15,000. If your plan is to make it a master bedroom with an attached bath, however, it could run closer to $25,000.

Converting a garage into an office tends to be one of the more budget-friendly options, since you don’t need plumbing and closets. You can expect to spend somewhere around $5,000. Turning your garage into a kitchen, on the other hand, will likely cost quite a bit more. You could spend anywhere from $6,000 to $50,000, depending on plumbing, appliances, and finishes.

The Takeaway

Converting a garage can be a great way to expand your livable space, while also adding value to your home. The design possibilities are virtually endless — you might turn your garage into an in-law suite, rec room for kids, gourmet kitchen, artist’s studio, home office, hobby room, home gym, or workshop. Whatever direction you take your garage conversion, you’ll want to consider budget (getting estimates from at least three contractors) and whether you’ll be able to pay up front for the project or may need to consider financing.

One type of loan that can work well for a garage conversion is a home improvement loan. This is an unsecured personal loan used to finance home upgrades and renovations. You receive a lump sum up front which you can use to pay for your garage conversion; you then repay the loan over a set term, often five to seven years, with regular monthly payments. Interest rates are typically fixed.

If you’re ready to remodel your garage and want to explore your financing options, SoFi could help. SoFi’s personal loans offer competitive, fixed rates and a variety of terms. Checking your rate won’t affect your credit score, and it takes just one minute.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Checking Your Rates: To check the rates and terms you may qualify for, SoFi conducts a soft credit pull that will not affect your credit score. However, if you choose a product and continue your application, we will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and may affect your credit.

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If you’ve made the decision to buy a home—or sell the one you have—you also may be thinking about hiring someone to help things go as smoothly as possible.

A real estate professional can assist in assessing how much to list or bid on a home for, help with negotiations, hold your hand while you make important decisions, and help you understand the complicated paperwork.

The right agent can help you buy your dream home or sell the home you have now. The wrong agent might not focus on your needs or price your house incorrectly, leaving you angry or disappointed.

But how can you know who to hire when the pros often have different job experience or expertise and go by different job titles? Are all real estate agents also Realtors®? Is that the same thing as a sales associate? What’s the difference between a buyer’s agent and a listing agent? And what does a real estate broker do?

What’s in a Name?

Though the terms Realtor and real estate agent are often used interchangeably, there are important differences you should know when it’s time to buy a house. Here’s a breakdown of the various titles real estate professionals use and what they mean:

Real estate agent: This is the most common term used for professionals who help clients buy and sell real estate. (Some firms may call their real estate agents “sales associates” or “salespeople.”) But a person can’t just slap their name on a business card and start selling homes.

A real estate agent must have a professional license to help residential or commercial clients buy, sell, or rent real estate. And to get that license, aspiring agents must take the required hours of pre-licensing training and any written exams mandated by their state. There are also continuing education requirements for license renewal. States also have different age, education, and residency requirements, and some jurisdictions also require a background check.

Realtor: This term is trademarked by the National Association of REALTORS (NAR), the largest trade organization in the U.S., and it should be used only to refer to that organization’s dues-paying members.

Members of the NAR are licensed professionals who expect to be held to a higher standard of practice, and they have their own strict code of ethics which is made up of 17 articles, meant to protect clients, the public, and other real estate agents. According to the NAR, 67% of its members are licensed sales agents, 21% hold a broker license, and 14% hold a broker associate license.

If you’re looking at hiring a Realtor vs. an agent, one of the big perks of NAR membership is access to additional research, market data, and transaction management services.

Broker: Brokers are professionals who take their real estate education and licensing to the next level — and they often manage other agents. (Think of it like a school principal who still may teach, but also has management responsibilities.)

Because of this elevated role, a broker’s pre-licensing coursework usually dives deeper into complicated topics such as contracts, taxes, insurance, and other legal issues.

Real estate brokers can work as independent agents or have other agents working for them — in the latter situation, they typically receive a percentage of their agents’ commissions as payment for overseeing their transactions. Agents who pass the broker exam but choose to work under another broker may be referred to as associate brokers.

Listing agent: Some agents prefer to work only with sellers. Others work only with buyers. But many agents do both. Real estate agents who represent someone selling a home are called “listing agents.”

In that capacity, their duties may include pricing the home, suggesting improvements, marketing and holding open houses, coordinating showings with other agents, recommending renovations or offering staging tips, and negotiating with potential buyers.

Buyer’s agent: Agents who represent homebuyers are called “buyer’s agents,” and it’s their job to help their clients find potential homes to tour and show those homes, offer references for other professionals that may be needed (inspectors, mortgage brokers, etc.), negotiate house prices, and help their clients through the closing. Listing agents and buyer’s agents typically split a 4% to 6% commission on a home’s sale price — and that money is typically paid by the seller from the sale proceeds of the home.

Recommended: How to Make an Offer on a House

Looking Beyond the Job Title

Besides understanding the credentials, duties, and level of education each real estate professional involved in your home sale or purchase may have, here are some other factors to consider when finding a real estate agent:

•   Do you want to work with a team or an individual? With a team, you’ll have multiple agents looking out for you — and there might always be somebody to sub in if your agent is unavailable for a showing or to answer a question. With an individual agent, you’ll have just one person to go to for all your needs, but you’ll get to know that agent, and they’ll get to know you. That personalized approach might be helpful during what could be a stressful process.

•   How much experience does your potential agent have? Not that there’s anything wrong with a sharp, gung-ho newbie, but given that your home purchase may be the biggest financial transaction of your life, it’s important to get it right. A seasoned agent can draw from past experiences when negotiating and problem-solving. You also may want to ask if the agent considers real estate to be a full- or part-time job. If this is a major purchase for you, you may want to know that you have the person’s full focus.

•   How familiar is the real estate agent with your current neighborhood (if you’re selling) and desired neighborhood (if you’re buying)? Knowledge of the area can be a plus when you’re looking at “comps” or “comparables” to determine the fair value of a home. Your agent should also be able to help if you need information about schools or crime. Of course, anyone can look up this information, but an agent’s insider knowledge (school zones that might slow your commute? A big new development planned nearby but not yet constructed?) may give you an edge in decision-making.

•   Where did you hear about the professional you’re considering? The agent with the biggest advertising budget may or may not be the right person for you. If you have family and friends in the area, they might be able to help with recommendations. (Don’t just ask who they used—ask if they’d use that person again.) Plan on interviewing your top prospects, ideally in person, to be sure communication is easy.

Recommended: First-Time Homebuyer Guide

What’s Next?

Finding a qualified, experienced real estate professional to work with a major step in the home buying or selling process. The right person could help you with everything from figuring out how much house you may be able to qualify for, to getting you into the home you want with as little financial and emotional pain as possible.

Once you’ve found that person, you may want to look for a lender, as well — and a SoFi Mortgage Loan could be a good place to start. Applying for a loan with SoFi is easy — choose the loan option that best fits your needs with a quick online prequalification process.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

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Curb appeal should always be front of mind when you plan to sell your home and want to attract buyers or boost your resale value. But it can also help make your home a more appealing place to live.

If you’re thinking about upgrading your home’s exterior, consider these smart home remodel projects

Ideas for Exterior Home Remodel Projects

No matter how beautifully you decorate the inside of your home, the outside offers up the first impression to visitors, and these exterior home remodel ideas can be great investments for you as a homeowner, whether or not you’re planning to sell your house right now.

From adding texture to the exterior of your home to swapping out old windows for more contemporary ones to fixing up your front door, a home exterior makeover can be a smart way to make a lasting impact in a short amount of time.

Replace Your Front Door With an Inviting Style

Psychologists say that it takes just seven seconds to make a first impression. This means your front door is one of the first parts of your house that a guest or potential buyer will see and will help set the tone for how they feel about the home in general. Thus, the front door should be one of the first places you focus your energy when tackling exterior renovations of your property.

For an open, light-filled look, consider doors with glass panels. Want more privacy? Use mirrored glass in the side panels, which allows you to see outside but people walking by can’t see in. Frosted glass also offers privacy while diffusing natural light.

The overall cost of installing an exterior door depends on complexity, materials, and where you live; it could run you as little as $150 or as much as $20,000. But on average, installing an exterior door will cost between $495 to $1,771. The labor alone of having someone install it for you could cost around $1,094, so if you’re handy with tools, this could be where you save money.

Even if you choose not to replace the door itself, a fresh coat of paint, updated knob and hinge hardware, and a new doorbell to match can go far in improving the curb appeal of your home’s exterior.

Mixing Textures on Your Home’s Exterior

Mixing textures is one way to alter the exterior of your home for a positive effect. Alternating visual patterns between wood, metal, concrete, and stucco requires some experimentation, but the results can be dramatic.

For a contemporary look, consider mixing multiple textures, which could range from different widths of siding or choosing different types of siding like combining cedar shingles and shiplap in the same color. You can also mix and match levels of gloss, or shapes and lengths of bricks and stone.

For a baseline cost, installed vinyl siding can range in price from $6,370 and $17,615, with the average cost being $11,676. Your costs will depend on the thickness of the siding, how much added style you want as you mix and match textures, the size of your house, how standard the shape of your house is or isn’t, and any added details like moldings, trim, soffits, corners, or vents. If there’s old siding that needs to be removed first, you’ll also want to factor in the additional cost of labor (or consider doing it yourself).

Upgrading the Windows

Changing the style of your windows will not only give your home’s exterior a brand-new look, but potentially be more energy-efficient than your current windows. This could end up helping you save money on electric bills, which may be attractive to buyers down the line.

Material selection will dictate the overall cost of new windows. Vinyl, for example, is on the lower end of the price scale, whereas solid wood windows will cost much more.

The cost of new windows also is dependent on the size of each unit, as there are hundreds of common window sizes available. On average, a single window unit runs $150 to $800 with installation costing an additional $60 to $300 per unit. The complexity of the windows also affects pricing, and if you plan to add shutters or new blinds, factor in those costs, too.

How Much Could Your Home Exterior Makeover Boost Value?

At a minimum, your home exterior makeover can make your house more appealing to the eye, but it also can help give potential buyers assurance that you have maintained the home’s upkeep.

Projects like fixing up the front door are a great place to start, and while you’re replacing your door, you could consider adding a portico or awning as a design element or to protect visitors from the weather. Also make sure your doorbell is attractive, dovetails with the house’s overall style, and — most importantly — works.

Similar comparative data shows that an upscale window replacement using vinyl can increase a home’s value by an average of 68.5% of its cost. Upscale window replacement using wood boosts a home’s value by an average of 61.2% of its cost. And siding replacement, on average, boosts home value by 94.7% of the cost.

Funding Your Exterior Home Remodel

Once you have created a plan for exterior improvements, priced out materials, and mapped out a budget, the next item on your agenda should be figuring out the best way to pay for your improvements. If you’ve got the money in savings, then that isn’t an issue. Or, if you plan to use your credit cards but can pay them off in full when the bills arrive, again, you’re squared away.

Using your credit cards when you can’t pay them off relatively quickly, however, can be problematic as credit card debt can be tricky to pay off. That’s because most credit card companies charge compound interest, which means you’re paying interest on the accrued interest, with the interest continually calculated and added to your balance. To make matters worse, the interest may typically be compounded daily.

Even if you make minimum payments, the interest just keeps compounding. In fact, it keeps doing so until the balance is paid off completely. If you miss a payment, the situation gets worse, with late fees and penalties often added on.

If you’d like to calculate what you’d actually pay on your remodeling debt, use our credit card interest calculator.

If you decide that it won’t make sense to use a credit card to pay for your remodeling, then consider comparing and contrasting home equity lines of credit versus home improvement loans, which is a kind of lump-sum personal loan. Under certain circumstances, a home equity line of credit (HELOC) may make sense; for example, if you have significant equity in your home, plan to borrow a large amount of money and/or want the potential tax benefits.

Benefits of choosing a home improvement loan include:

•   You won’t tie up any equity in your home.

•   Fees are likely to be less, and maybe you won’t have to pay any fees at all

•   Application and approval processes are typically faster than with a HELOC

Recommended: How Much Does It Cost to Remodel or Renovate a House?

What Bedroom Style Is Right For You Quiz

The Takeaway

Exterior home remodel projects can be a way to increase your house’s curb appeal, while also adding value. They also are often the quickest way to turn a real estate investment into long-term value. Exterior home projects can be as simple as adding a fresh coat of paint to your existing front door or as complex as replacing all the windows in your house to be both contemporary and more energy efficient. At the very least, tackling these smart exterior home remodel ideas should help you down the line when you decide to sell your house.

Of course, the more involved a project is, the more expensive it can be. If you need help financing an exterior home remodeling project, you have options, including using cash, using a credit card and paying off the balance quickly, or taking out a personal loan.

If you’re ready to roll up your sleeves and get some home repairs or renovations done, see what a SoFi personal loan can offer. With a SoFi Home Improvement Loan, you can borrow between $5,000 to $100,000 as an unsecured personal loan, meaning you don’t use your home as collateral and no appraisal is required. Our rates are competitive, and the whole process is easy and speedy.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Selling your home? If so, you likely want to do everything in your power to make it look great and trigger solid offers ASAP. Staging your home can be one key contributing factor to achieving that.

When you stage your home, you optimize its look and design. This allows potential buyers to visualize the house as their own. It makes it look like a place they aspire to put down roots. (Yes, decluttering and removing some of your personal mementos may be involved.)

According to a National Association of Realtors® survey, 89% percent of buyers’ agents said staging a home made it easier for a buyer to visualize the property as a future home.

Want to learn more? Here’s a step-by-step guide to how you can stage your home.

8 Steps to Stage a House for Sellers

Follow these tips for staging your home and impressing prospective buyers.

1. Take Stock of Needed Fixes

If a house requires considerable repairs, a seller may face a lengthy negotiation process with buyers that results in concessions and contingencies. Any issues flagged by an inspection will also need to be addressed with prospective buyers.

Deciding whether to make these fixes beforehand will affect how a home is staged and perceived by buyers. Even relatively small issues like cracks in a ceiling and a dripping faucet can raise concerns and influence a buyer’s impression. That’s something to be wary of, especially in a hot housing market when many buyers want to snag a home quickly.

Taking care of these common home repairs before house staging can show buyers that you’ve maintained the property and keep their focus on its strengths.

💡 Quick Tip: Don’t overpay for your mortgage. Get your dream home or investment property and a great rate with SoFi Mortgage Loans.

2. Enhance Curb Appeal

Before buyers walk through the door, they’ll have already formed an impression from the home’s curb appeal, the attractiveness of a property from the sidewalk or street.

Buyers may even do a drive-by before setting up a showing to narrow down their search. Thus, sprucing up a home’s exterior, lawn, and landscaping is essential to any plan for how to stage a house. Even in winter, curb appeal matters.

Any eyesores, such as chipped paint, cracked windows, or clogged gutters could discourage buyers from taking a closer look. Power-washing any siding and applying a fresh coat of paint where needed are some possible quick improvements.

Thinning out lawn decor, replacing burned-out lights, and tidying up gardens and landscaping are also low-cost ways to increase curb appeal.

For many prospective buyers, their first look into your home will be digital. High-quality photos can be helpful in attracting buyers.

Staying on top of things like lawn care while the home is listed could make a difference in getting more showings and securing a higher offer. In fact, 98% of NAR members say they believe curb appeal is important to potential buyers.

3. Remove Clutter

While working on house staging, you may also be encumbered with the home-buying process or figuring out what to do with all your stuff after it’s sold. In either case, staging is an opportunity to jumpstart the moving process and declutter the house.

Removing clutter is a popular staging tactic to make the interior of a home appear more spacious. A home’s square footage can’t be fabricated, but curating a more open layout can give the impression of a larger space.

Begin by packing away items that you don’t use daily, like seasonal clothes, knickknacks, sports equipment, and other odds and ends. This is also a chance to identify anything you want to sell, donate, or dispose of.

Storage space of a home can also be a major selling point. Instead of loading up the basement, garage, and closets, sellers may want to consider asking family members or friends to store their belongings, hosting a garage sale, or renting a storage unit.

Recommended: How to Refresh Your Home Room by Room

4. Depersonalize the Space

Cutting back on personal items is an important step in staging a house. While decluttering the home, stowing away family photos and clothing is a good place to start. Removing subtler items like personal toiletries can further neutralize the space.

That lavender paint in one room and turtle-themed wallpaper in another? It might be best to create a more basic canvas.

The point is to show that the home is move-in ready and an open book for buyers to add their personal touches. With just the integral furniture and furnishings remaining, it’s easier for buyers to imagine themselves moving in and living there.

5. Do a Deep Cleaning

Once the decor and furnishings have been minimized, it’s time to get the house squeaky clean. While this is one of the more cost-effective ways to stage a house, it can take significant time and energy.

To streamline the process, consider starting with the highest surfaces and working your way down. Overhead fixtures like lighting and ceiling fans are often overlooked in regular cleaning routines, and thus accumulate lots of dust and grime. It’s likely that cleaning these hard-to-reach places will bring debris down on countertops and floors.

Bathrooms and kitchens are key rooms to focus on. Water stains and mildew in sinks, tubs, and showers are obviously a no-no. Making sure appliances sparkle and that countertops are spotless can give the kitchen a fresh new look.

💡 Quick Tip: To see a house in person, particularly in a tight or expensive market, you may need to show proof of prequalification to the real estate agent. With SoFi’s online application, it can take just minutes to get prequalified.

6. Define Every Space

While the kitchen, bathroom, master bedroom, and garage are straightforward in their purpose, some spaces in a home may not have an obvious use to prospective buyers.

Thinking about how to stage spare rooms and unconventional spaces is important. For example, staging such a space as a home office or workout room could appeal to a larger segment of buyers.

7. Stage Where It Matters Most

Not every room holds equal weight from the homebuyer’s perspective. Prioritize the living room, primary bedroom, kitchen, dining room, and yard; real estate agents say these are of most interest to buyers.

The kids’ rooms and basement? Spend less time and energy there.

Recommended: Home Appraisals: What You Need to Know

8. Don’t Forget Outdoor Space

While the front of a house determines curb appeal, the yard, porch, or patio space can sell buyers on the lifestyle they could enjoy there.

The backyard is a popular place for entertaining and socializing, especially for families with kids. Tidying up the yard and addressing any safety issues like a wobbly porch railing or broken fence could be easy fixes.

Setting up a focal point, such as an outdoor seating area, fire pit, or grill, can make the space more inviting. Even if it’s a limited yard or patio space, brightening it up with flowers and comfy outdoor furniture can change the perception from confined to cozy.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

How to stage a house? It can take time and energy, but emphasizing a home’s strengths and creating an inviting atmosphere can be done with some thorough cleaning, decluttering, and rearranging.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

SoFi Loan Products
SoFi loans are originated by SoFi Bank, N.A., NMLS #696891 (Member FDIC). For additional product-specific legal and licensing information, see SoFi.com/legal. Equal Housing Lender.

SoFi Mortgages
Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility-criteria for more information.

Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

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People often use the terms “pending offer” and “contingent offer” interchangeably, but there is actually a difference when you are talking about real estate.

When a property is said to be contingent, that means the seller accepted an offer that is contingent on particular conditions requested by the buyer. These conditions could involve anything from an inspection to financing.

If, however, you see a house on the market switch to pending, there’s a different status involved. The seller has accepted an offer, and all contingencies have either been waived or addressed.

Yes, the distinction may be subtle. However, the bottom line is, neither status actually means a property is sold. If you have found your dream home and it says “contingent” or “pending,” there is still a chance you could snag it.

Contingent Offers vs. Pending Offers

Here’s a closer look at the difference between contingent and pending offers.

What is a Contingent Offer?

When a home’s status switches to contingent, it means contingencies stand in the way before the deal is done. If closing on a home is a race, then buyers still have miles ahead of them when they enter the contingency process.

There are many types of contingencies buyers can include in their offer that make it easier for them to back out of a real estate deal, but these are some of the most common:

•   Financing contingency. The buyers put some money or the promise of a mortgage behind their offer, right? This condition ensures that if the buyers aren’t approved for a mortgage, they’re not on the hook for finding cash to buy the property.

Some buyers choose to have a preapproval letter in hand to make the financing contingency move faster.

•   Inspection contingency. A home inspector is paid to search the property top to bottom to uncover any issues. With a home inspection report in hand, buyers can ask the sellers to solve the issues or give them a credit against the purchase price of the home.

With this contingency, buyers can also walk away from a deal based on the findings of the inspection. Alternatively, if both parties don’t come to an agreement on repairs or credits, they can terminate the deal.

•   Appraisal contingency. In order to secure financing for a home, it must be professionally appraised for the value of the offer or more. If the home appraises for less than the offer, the buyer can either make up the difference in cash, negotiate with the seller for a lower offer, or walk away from the deal.

Recommended: What Is a Mortgage Contingency?

•   Home sale contingency. If buyers need to sell their existing home to help finance the purchase of a new home, they may include a home sale contingency in the offer. That means if an offer on their home falls through, they’re no longer on the hook to buy the home they made an offer on.

Contingencies are in place to protect buyers and sellers in the event of snags throughout the negotiation process.

Prospective buyers can include as many contingencies as they like in an offer, and if the sellers agree, the buyers will need to work through each one before they make it to closing.

For people salivating over a hot property that looks taken, contingencies may signal opportunities for a deal to fall through. If you have your heart set on a home that’s contingent, you can hold out hope. Thanks to contingencies, there’s a chance the existing offer will fall through.

💡 Quick Tip: Don’t overpay for your mortgage. Get a great rate by shopping around for a home loan.

What is a Pending Offer?

Just because a home is pending doesn’t mean the deal is done. A home often enters pending status once buyer contingencies are cleared, but it can also enter pending status immediately if a buyer makes an offer without contingencies.

A pending home sale may still fall through, but the buyer and seller have worked through most of the contingencies. For a pending sale to fall through, there likely has been an unexpected issue with the inspection or financing.

In fact, a pending home is still on the market. The listing agent and seller can choose to continue showing the home and even accept other offers, even if its status is pending. However, this is largely up to the sellers and their agents.

Recommended: First-Time Homebuyer Guide

Can Pending and Contingent Homes Take Other Offers?

If a home is contingent and the buyers are still working through the inspection, financing, or selling their current home, a competing buyer can make a backup offer on the property. If the initial offer falls through for any reason, the seller can take the other buyer up on their offer.

It’s up to the sellers whether they will accept a backup offer or not, but if the buyer loves the property, it can’t hurt to ask.

In many markets, a home with pending status means it’s not open to additional offers, but the deal isn’t sealed. It’s not over till it’s over, so the buyers could still back out based on their contingencies, as outlined above.

(A home could be marked “pending, taking backups,” indicating that the seller is still showing the house and accepting backup offers.)

When a home is pending or contingent, it’s not against the law for another buyer to ask for a tour, express interest in the home, or even make a competing offer. But compared with a home that is not under contract, it is less likely that a competing buyer will get the property.

While you may make offers on these properties, buyers don’t get your hopes up. Depending on how close the buyer and seller are to closing, it’s not legally possible for the seller to accept another offer.

Additionally, the closer a home gets to closing, the more complicated competing offers can be. This is when a seasoned real estate agent may come in handy. They will understand the market, process, and legalities better than most first-time buyers do and how to navigate a hot housing market.

Recommended: Guide to Buying, Selling, and Updating Your Home

The Takeaway

Contingent vs. pending: Though some use the words interchangeably, the two statuses are different. A contingent deal may have a long way to go, as buyers firm up financing, await an appraisal, or sell their current home. A pending property is nearer to closing, but the deal still isn’t final.

Buyers eyeing a dream property may hold out hope that contingent or pending deals fall through. In that case, having everything set up for a backup offer could pay off.

Looking for an affordable option for a home mortgage loan? SoFi can help: We offer low down payments (as little as 3% - 5%*) with our competitive and flexible home mortgage loans. Plus, applying is extra convenient: It's online, with access to one-on-one help.

*SoFi requires Private Mortgage Insurance (PMI) for conforming home loans with a loan-to-value (LTV) ratio greater than 80%. As little as 3% down payments are for qualifying first-time homebuyers only. 5% minimum applies to other borrowers. Other loan types may require different fees or insurance (e.g., VA funding fee, FHA Mortgage Insurance Premiums, etc.). Loan requirements may vary depending on your down payment amount, and minimum down payment varies by loan type.

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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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