Contingent vs. Pending Home Status: Key Differences for Buyers

Understanding the difference between a contingent and a pending home status is crucial for making informed decisions in a competitive market. In short, a contingent listing means the seller has accepted an offer, but the sale depends on specific conditions being met; it is still technically active. A pending listing means all contingencies have been satisfied or waived, and the sale is proceeding toward closing, making it highly unlikely for another buyer to intervene. This guide explains these statuses in detail and outlines a strategic approach if you're interested in such a property.

What Does Contingent Mean in Real Estate?

A property listed as contingent signifies that the seller has accepted a buyer's offer, but the final sale is conditional upon meeting certain pre-defined terms. These conditions, known as contingencies, are clauses in the purchase contract that must be fulfilled for the deal to proceed. If a contingency is not met, the contract can be legally voided without penalty. Because the sale is not yet secure, a contingent property remains an active listing on the market.

Common real estate contingencies include:

• Financing Contingency: Protects the buyer if they are unable to secure a mortgage loan from a lender.
• Appraisal Contingency: Allows the buyer to renegotiate or withdraw if the home's official appraisal value comes in lower than the offered price.
• Inspection Contingency: Gives the buyer the right to request repairs, a credit, or back out based on the findings of a professional home inspection.
• Home Sale Contingency: Makes the purchase dependent on the buyer successfully selling their current home by a specified date.

What Are the Different Types of Contingent Statuses?

Multiple listing services (MLS) often use specific labels to provide more detail on a contingent listing's availability. Understanding these can help you gauge your chances.

• Contingent – Continue to Show (CCS): The seller is still actively showing the home and may accept backup offers. This indicates the initial offer may have several hurdles to clear.
• Contingent – No Show: The seller is not accepting new showings or offers, signaling high confidence that the current deal will close successfully.
• Contingent – Kick-Out Clause: The buyer has a specific deadline (e.g., to sell their own home). If they fail, the seller can "kick out" the offer and accept a new one.
• Contingent – Short Sale: The accepted offer is for less than the amount owed on the mortgage, requiring third-party approval from the lender, a process that can take months.

What Does Pending Mean in Real Estate?

A pending status means the seller has accepted an offer and all contingencies have been successfully met or waived by the buyer. At this stage, the property is no longer considered an active listing, and the transaction is moving through the final steps toward closing, such as the final mortgage approval, title search, and signing of closing documents. While a pending sale is not yet final, the likelihood of it falling through is significantly lower than a contingent sale.

Some common pending status variations are:

• Pending – Taking Backups: An issue has arisen late in the process, prompting the seller to cautiously accept backup offers as a safety net.
• Pending – Short Sale: The sale is awaiting final approval from the lender, which is the primary cause of the delay.
• Pending – No Show: The sale is considered very solid, and the seller is not entertaining any other offers.

Can You Make an Offer on a Contingent or Pending Home?

Yes, it is possible to make an offer on a home that is contingent or pending, but it requires a specific strategy. Based on our experience assessment, your success will depend on the specific circumstances of the existing contract and how you present your offer.

To increase your chances, consider the following steps:

1. Have Your Agent Inquire: Your real estate agent should contact the listing agent to understand the situation. They can find out the strength of the current offer, the seller's confidence level, and whether the contract includes provisions for backup offers.
2. Submit a Strong Backup Offer: Make your offer highly attractive. This often means offering at or above the asking price, providing a larger earnest money deposit (a good-faith deposit made to show the seller you are serious about buying the home), and limiting your contingencies to only the most essential ones.
3. Be Prepared to Act Quickly: If you tour a contingent home and are interested, be ready to move fast. Flexibility on the closing date can also make your offer more appealing.

How Often Do Contingent or Pending Deals Fall Through?

While the majority of home sales do close, deals can fall apart. According to data from the National Association of REALTORS®, approximately 5% of agreed-upon home sales fail to reach closing. These failures can be due to financing denials, unfavorable inspection results, or appraisal gaps.

For buyers, the key takeaway is that a contingent home presents a more viable opportunity than a pending one. While submitting a backup offer is always an option, your resources are often better focused on active listings. However, if a contingent property is your dream home, a well-crafted backup offer prepared with an experienced agent is a strategic move worth considering.