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Contingent vs. Pending: Understanding Key Differences

If you’re buying a home, knowing the differences between contingent and pending can inform your real estate strategy.

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By Micah Murray

Written by

Micah Murray

Writer

Micah Murray has over six years of experience in personal finance. His work has been published by Newsweek Vault, New York Post, and Bankrate.

Edited by Valerie Morris

Written by

Valerie Morris

Editor

Valerie Morris is a content editor with a focus on personal finance. She has seven years of experience editing copy for accuracy, clarity, and conciseness to inform and empower readers. Previously, she worked for news outlet The Hill, editing articles about politics and policy.

Updated December 5, 2024

Editorial disclosure: Our goal is to give you the tools and confidence you need to improve your finances. Although we receive compensation from our partner lenders, whom we will always identify, all opinions are our own. Credible Operations, Inc. NMLS # 1681276, is referred to here as “Credible.”

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Contingent and pending refer to the sales status of a home that has an offer accepted but not yet completed. But the sale might not continue through closing day in all situations, depending on negotiations. Knowing the differences between contingent and pending can help inform your buying strategy. 

Learn more about contingent vs. pending, the types of statuses, and when you can still make an offer on a home.

What is the difference between contingent and pending?

“Contingent” and “pending” are terms used to describe the status of real estate deals. A contingent deal on a home can only proceed if both buyers and sellers meet all conditions, while a pending home sale means both parties have already agreed to put the property under contract. 

“The difference between pending and contingent is that, while both are accepted offers, contingent sales are less likely to make it to closing as there are greater unknowns during escrow if the deal can actually be completed,” says Chris Reis, founding broker of PNW Residences.

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To sum up:

Generally, pending refers to a home that’s nearly ready to sell. Contingent means there are still conditions that need to be satisfied before a home moves into the pending phase.

What does “contingent” mean in real estate?

In the real estate market, the term contingent is used to describe a deal that depends on certain conditions, called contingencies. Real estate contingencies protect the buyer (and sometimes the seller) from being legally bound to an unfavorable deal. 

For example, you might submit an offer on a home you want to buy and include an inspection contingency. If the seller accepts your offer, the deal will only be able to proceed after you have the home inspected and negotiate any needed repairs. When a home sale is labeled as contingent, other buyers might still be able to make an offer. 

“Contingent properties still have some flexibility, as buyers and sellers may need to negotiate these conditions or even release the property back to the market if contingencies aren’t met,” explained Cindy Raney, founding agent of real estate firm Cindy Raney & Team. “Sellers usually are not especially attracted to contingent offers due to this additional uncertainty and the fact that contingent offers tend to take significantly longer to close.”

What does “pending” mean in real estate?

If a home is listed as pending, it means that a deal has been made and moved to escrow until closing. A property can only go into pending status after all contingencies are met. Often, you’ll hear pending homes referred to as being under contract, meaning that both the buyer and seller are legally obligated to close the deal. 

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Expert Tip:

“Pending sales can still fall through, so it’s a good idea to reach out to the listing agent if you’re interested in the property. They might be open to having backup offers so they don’t have to start over.” — Valerie Morris, Editor, Mortgages

A pending sale might fall through because the buyer can’t secure financing, the inspection revealed serious problems, or the buyer changed their mind. If there are no contingencies to cover these issues, there might be consequences if you walk away, such as forfeiting earnest money or facing legal action.

Types of contingent statuses

There are several types of contingent real estate statuses you might come across when buying real estate. Understanding the differences between these types can help you decide how to move forward. Here are the contingency statuses you should be familiar with:

  • Inspection contingency: An inspection contingency gives you the ability to get a home inspection before going under contract on a home. If the inspection isn’t satisfactory, you can negotiate repairs with the seller or back out of the contract. 
  • Appraisal contingency: Appraisal contingencies require the property to be appraised prior to making a real estate deal official. If the appraisal comes in lower than the asking price of the home, you’ll have the option to negotiate the price or forfeit the deal. 
  • Financing contingency: Financing contingencies are commonly placed on offers where securing financing could be an issue. A financing contingency allows you to walk away from the sale if your loan isn’t approved.
  • Property sale contingency: If you’re relying on the funds from your current home sale to buy another property, you might consider making it a condition of the offer you make on your new home. 
  • Title contingency: Title contingencies ensure that the title to your new home is free from legal issues, such as liens or ownership disputes. To satisfy a title contingency, a title company will perform an in-depth title search to search for these potential issues. 

Types of pending statuses

A pending status on a home sale usually means the buyer and seller are heading toward closing, but are waiting to wrap up final details of the deal. Some real estate listings get more specific about where in the process the home sale is. Common specific pending statuses include:

  • Taking backups: If a seller is worried that the sale of their home could fall through, they can accept backup offers. A backup offer on a pending home will only be considered if the current sale falls through. 
  • Short sale: A short sale happens when a property is sold for less than what is still owed on the mortgage. A pending short sale often means that the seller has accepted an offer but is waiting for the mortgage lender to approve the loan.
  • Lender-approval: Pending lender approval simply means that a sale is awaiting final approval from a lender, sometimes due to a need for additional information.

Contingent vs. pending FAQ

Can you put an offer on a house that is contingent?

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Can contingent offers fall through?

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How often do contingent offers fall through?

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Meet the expert:
Micah Murray

Micah Murray has over six years of experience in personal finance. His work has been published by Newsweek Vault, New York Post, and Bankrate.