Contingent vs. Pending: What’s the Difference?

What it means if a property is contingent

Richard Harless, a real estate agent in Arizona, said that a contingent home is when “the owners have accepted an offer but are waiting to clear the deal based on some conditions or contingencies."

If these contingencies are not met, the offer is revoked, and the house typically goes on the market again.

Contingencies typically relate to the condition of the property or various financial thresholds that need to be met for a buyer to execute their end of the deal. Here are some typical contingencies:

Inspection contingency

An inspection contingency is when the home sale hinges on the results of a professional home inspection. If the property has hidden issues or needs costly repairs, a buyer may choose to walk away from the sale.

Appraisal contingency

With an appraisal contingency, an appraiser has the ability to change the outcome of the sale. If a home's value isn't as high as the buyer or seller believed, the amount of financing the buyer is approved for may be insufficient.

Financing contingency

A financing contingency is put in place when a buyer does not yet have financing lined up to purchase the home. If the buyer fails to line up a mortgage or other financing by a specific date, the sale could fall through.

Sale contingency

With a sale contingency, a buyer needs to sell their existing home in order to purchase a new one. If they don't sell their home by a specific date to meet the contingency in the contract, the transaction may be terminated.

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What are the different contingency statuses?

Richard Harless said there are six main contingency statuses to know about, and they all dictate what might happen next as a part of the home sale process.

Short-sale contingent

Short-sale contingent is used to describe a situation when a seller accepts an offer that is lower than what they owe to their lender, usually seen in cases of urgent relocation or financial distress, Harless said.

The lender has to agree to a short sale for this type of transaction to proceed, and the entire process can take more time as a result.

Contingent: continue to show

A continue-to-show contingency allows sellers to continue to show their home to other prospective buyers while the original buyer takes steps to meet all contingencies outlined in the home contract.

"Sellers can accept offers from other buyers if the first one fails to come through," Harless said.

Contingent: no show

A no-show contingency denies the seller the chance to continue showing their home to other prospective buyers while the original buyer works toward meeting contingencies in their contract.

Harless said this status is commonly used for contracts where it’s likely the buyer will meet contingencies or if there are few requirements to meet.

Contingent: no kick-out clause

A no-kick-out-clause contingency status gives buyers unlimited time to meet contingencies in their contract without losing out on the home sale.

Contingent with a kick-out clause

Contingencies with a kick-out clause give the buyer a certain length of time in order to meet contingencies outlined in the contract. After an agreed-upon amount of time has passed, sellers can pull out of the deal and put the property back on the market.

Contingent probate

Harless said contingent probate status occurs after the death of the owner, during which the probate process works to divide or manage the deceased's house and property.

What it means if a property is pending

Pending homes have met all contingencies and are in the process of being sold to someone. However, Richard Harless said this still doesn't mean the sale is complete because a number of things can still lead to the deal falling through.

For example, a pending home sale could fall apart if the buyer's financing falls through or if there are appraisal issues that complicate the home sale and make financing an issue.

If you are a seller, you want to get to pending status as soon as possible because that means you are on the road to completing your sale, Anthony Kirlew said.

What are the different pending statuses?

When a home is pending sale, real estate agents and other professionals in the industry use different pending statuses to describe what is going on with a property.

Pending: taking backups

A home that is listed as “pending: taking backups” is currently moving toward closing, yet the seller is still accepting offers from other buyers.

Pending: more than four months

A home that has been pending for more than four months will automatically change to this status with a multiple listing service (MLS).

Pending short sale

Pending short sale means the property is being sold during a short sale process. The contingencies have been met, but the property has yet to make it to closing.

How do properties move from contingent to pending status?

Homes typically move from contingent to pending status when all the agreed-upon contingencies in the contract have been satisfied. These may include completing a home inspection, securing financing, finalizing an appraisal or selling a previous home.

Once the buyer has met these conditions and the seller has agreed that all terms are fulfilled, the transaction advances into the pending stage. At this point, the property is effectively off the market, and both parties work toward closing. This is when title checks, final walk-throughs and document preparation typically take place.

Both buyers and sellers should stay on top of deadlines and communicate clearly to ensure a smooth transition from contingent to pending status.

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Can you make offers on pending and contingent properties?

Buyers can make an offer on a contingent or pending home, but it may only be feasible in certain scenarios.

For example, a home that is listed as "contingent no show" would be impossible to view while contingencies are being met, so it would be difficult to determine whether you want to make an offer or how much you want to offer.

Making an offer on a contingent property

Buyers can still make an offer on contingent and pending properties.

Richard Harless said it’s easier to make an offer on contingent homes. If the status is a "kick-out" or "continue to show," you will be able to view the listing and make a higher bid.

Making an offer on a pending property

With pending houses, offers are only entertained if the previous buyer fails to come through. At that point, Harless said your best shot is being a backup offer with financing already lined up.

FAQ

Bottom line

While contingent home sales are still waiting on certain conditions to be met before the sale can proceed, pending home sales have met all contingencies and are closer to closing. If you’re a buyer considering pending or contingent offers, you may be able to close on a home because of unmet contingencies or other issues with the sale.