Contingent Vs. Pending: What’s The Difference?

The key difference between contingent and pending on a real estate listing is whether the buyer or seller has placed specific conditions on the home sale and whether the conditions have been satisfied. Contingencies allow both parties to protect themselves by building safeguards into the home buying process.

Let’s look at different types of contingent versus pending statuses on real estate listings and explore what they can mean for you as a buyer.

When a property is listed as contingent, that means the seller has accepted an offer but is keeping the listing active in case the prospective buyer doesn’t meet certain contingencies. When a property is pending, that means all contingencies have been satisfied, and the buyer and seller are ready to move toward closing.

What Is A Contingent Offer?

Home buyers use contingencies in their offers to ensure certain conditions are satisfied before a sale can move forward. For example, with an inspection contingency, a home inspector will visit the home to evaluate its condition. If the home inspection reveals plumbing, structural or other substantial issues with the house, the buyer can negotiate repair costs with the seller or back out of the sale penalty-free. Other common contingencies include a mortgage or financing contingency and an appraisal contingency.

What Is A Pending Offer?

A pending status means the seller and their agent are confident the sale has cleared its major hurdles and is on its way to closing. Pending offers usually signal that a sale is almost complete, and the owner is unlikely to consider other offers.

There are several subcategories of contingent statuses, each with slightly different implications.

1. Contingent: Continue To Show (CCS)

If an active listing is marked as Contingent: Continue to Show, or CCS, there are likely multiple outstanding contingencies to satisfy. In this scenario, a seller and their agent will continue to show the property and may even accept a better offer from another potential buyer.

To prevent a seller from overlooking your offer, consider getting a mortgage preapproval for a home loan or making an earnest money deposit. Work with your real estate agent to see what you can do to strengthen your purchase offer.

2. Contingent: No Show

In a Contingent: No Show scenario, the seller isn’t showing the property or accepting other offers. This status reflects the seller’s confidence that any outstanding contingencies will likely be satisfied.

3. Contingent: With Or Without A Kick-Out Clause

When a contingent status has a kick-out clause, the seller can continue to show the home and accept additional offers. If the seller receives a stronger offer during this time – usually an offer with no contingencies – the kick-out clause allows them to release the original offer in favor of the new one.

4. Contingent: Short Sale

A short sale is when a bank or other mortgage lender agrees to accept less money from a home sale than the homeowner currently owes on the mortgage. Despite its name, a short sale typically takes months to complete. A Contingent: Short-Sale status indicates that the home is no longer for sale because the seller has accepted an offer – but the sale is still contingent on satisfying certain conditions.

5. Contingent: Probate

The Contingent: Probate status occurs when an estate is being sold after a homeowner’s death. Probate is the legal process of reviewing a will and distributing the deceased’s assets.

Pending statuses also have subcategories, each having a different implication.

1. Pending: Taking Backups

The Pending: Taking Backups status indicates that while the real estate listing is pending, the seller is still showing the house and accepting backup offers. A seller can use a backup offer if the original offer falls through.

2. Pending: Short Sale

Pending: Short Sale means a short sale is in progress with the seller. This status indicates that the property is likely further along in the process, and the seller isn’t accepting backup offers.

3. Pending: More Than 4 Months

The Pending: More Than 4 Months status is a designation in the multiple listing service (MLS) that indicates a listing has been pending for more than 4 months. The status can mean the pending sale is taking longer than expected or that the real estate agent forgot to change the status from pending to sold after closing.

If you’re interested in an active contingent property listing, you may still be able to submit an offer. While the initial offer will take precedence once all contingencies are satisfied, making an offer can put you at the head of the line if the original deal falls through.

Aim to submit a more attractive offer than any other bids the seller may receive. Your offer may lose some appeal if you make a contingent offer. The seller may go with another buyer who submitted a no-contingency or cash offer.

A property with a pending status is further along in the transaction than one with a contingent status. If you’re very interested in a property marked “pending,” nothing would legally prevent you from making an offer.

It’s up to the seller and their listing agent to decide whether they still want to entertain additional offers. It’s probably best to talk with the listing agent to see if they’re still taking offers.

A property is contingent when the seller has accepted an offer but keeps the listing active in case the contingencies aren’t satisfied. A property is pending when the conditions on a contingent property have been met, and the sale moves toward closing.

Now that you know how to tell the difference between pending and contingent real estate listings, it may be time to resume or start house hunting. Start your approval online today to discover how much home you can afford.