Contingent vs pending status explained

You’re browsing real estate listings for the thousandth time when you finally see the perfect house. Three bedrooms and two baths? Check. A fenced-in backyard for the dog? Check. The neighborhood and school district you’ve been dreaming of? Check. That home office with just the right amount of natural light? It’s all there. 

Then you notice something else about the listing. It says the home’s status is “contingent.” You know you’ve seen other listings with similar terms, like “pending,” but you’re not sure what any of it means. Surely if a home is still listed, it’s still available, right? 

Well, maybe. 

Terms like “pending” and “contingent” have very specific meanings in real estate, and they can have a big impact on your home search. As a buyer, it’s a good idea to familiarize yourself with these common listing terms so you can feel confident moving forward on your dream home. 

What does contingent mean in real estate? 

Contingent means the seller has accepted an offer, but there are still conditions that need to be met for the sale to close. Usually, this is because the buyer has included contingencies in the contract, like inspection or financing contingencies (more on these in a minute). The seller may decide to accept backup offers on the home until all contingencies are satisfied. 

Why would a seller accept backup offers? Because even with an accepted offer, the deal can still go south. According to data from the January 2022 REALTORS® Confidence Index Survey, 23% of all purchase contracts are delayed, and 7% are terminated entirely. Those figures include both pending and contingent listings, though most issues that delay or end a contract are thanks to contingencies.   

What does pending mean in real estate?

When a home is pending, the seller has accepted an offer and all conditions have been met for the sale to close. The buyer has fulfilled their contingencies or waived them all together. Sometimes, a listing will go straight from active to pending — often when there’s an all-cash offer involved. 

With pending status, a seller typically won’t take further offers on the home because the deal is nearly sealed. The deal is officially sealed when all conditions of the contract are met. The title is clear, the buyer’s financing has been approved, and the buyer and seller have gone through the closing process. 

Once a listing goes pending, closing generally takes a few weeks to two months. The average mortgage purchase loan takes 47 days to close.  

Common contingent statuses

Buyers commonly use contingencies in real estate contracts to protect their interests. If a contingency can’t be met, the buyer is free to walk away with their deposit money intact. Here are some common contingencies buyers need to know. 

Financial contingency 

With a financial contingency, if you can’t get a mortgage, you can back out of the deal without losing your deposit. 

How common are financing issues?

• 24% of delayed contracts

• 25% of terminated contracts   

Appraisal contingency 

Lenders require an appraisal to confirm the value of your would-be home so they don’t lend you more than the property is worth. With this contingency, if the appraisal comes in lower than the purchase price, you can renegotiate or walk away from the contract. 

How common are appraisal issues?

• 20% of delayed contracts

• 15% of terminated contracts 

Inspection contingency 

An inspection contingency allows you to learn more about the home’s condition before finalizing the deal. If the inspection reveals major issues, you can request repairs, renegotiate with the seller, or opt out of the contract entirely. 

How common are home inspection issues?

• 12% of delayed contracts

• 25% of terminated contracts  

Title contingency 

If the title review turns up any major issues of ownership, this contingency allows you to exit the contract. 

How common are title issues?

• 10% of delayed deals

• 3% of terminated deals 

Sale contingency 

A sale contingency is often used by buyers who need to sell a previous home before they can buy the next one. This contingency lets you walk away from the deal if you’re not able to sell your old home within a certain timeframe — say 30, 60, or 90 days.   

Contingency with a kick-out clause 

Sellers aren’t a big fan of sale contingencies, so they’ll often include a kick-out clause in the contract. That means the seller can continue to show the home and accept offers during the sale contingency period. If the seller gets a better offer, they’ll allow the original buyer 72 hours to drop the sale contingency and proceed with the deal. If the buyer can’t move forward, the seller “kicks them out” for the better deal.  

Common pending statuses   

If you see a “pending” status on your dream home, don’t panic. Take a deep breath, and go into fact-finding mode. Pending can mean a few different things. Here are a few of the possibilities.   

Pending - Taking backups

In this scenario, the listing agent is still showing the home and accepting backup offers. If you can deal with a bit of uncertainty, bring your best offer to the seller.  

Pending - Short sale

This means the seller is in the process of a short sale with their lender. With a short sale, the seller owes more on the home than it’s worth (that is, they’re “coming up short”). These are complex transactions that require approval from the seller’s lender, so they can take months or even years to close. It’s unlikely that a short sale seller will be accepting backup offers. 

Pending - More than 4 months

When a home is pending for more than 4 months, the multiple listing service (MLS) is automatically updated with this status. Deals can be delayed for a variety of reasons. Perhaps the seller needed more time on their end, or some last minute issues came up. Sometimes, the seller’s agent simply forgets to update the listing status in a timely manner. This may be a tricky situation to wade into with an offer. Proceed with caution and have your agent dig for more details. 

Can you make an offer on a home that is contingent or pending?

It depends. While there’s nothing to legally stop you from contacting the listing agent and making an offer, that doesn’t mean the seller will entertain your bid. 

Can’t let that perfect home slip by without giving it your best shot? Talk to your real estate agent. They can reach out to the listing agent to find out whether the seller is accepting backup offers, and how likely it is that your offer will even be considered. Remember: your offer is binding if the seller accepts it. So it’s not a decision to take lightly. 

If the home is contingent, you can likely make a backup offer. Granted, with only 7% of contracts being terminated overall, understand that you may still face disappointment. 

If the home is pending, it’s unlikely you’ll be able to make a backup offer, but it’s not impossible. The listing agent can provide more information on whether it’s worth it to throw your hat into the ring.

Wrapping up

Seeing a pending or contingent status on a home you love can be disheartening, but it doesn’t mean you’re without options. Terminated contracts are relatively uncommon, but they do happen. Contingent listings will often allow backup offers, though it’s unlikely you’ll be able to bid on a home that’s pending. Work with your agent to determine the best course of action for your unique situation.