Contingent sale vs. pending: what’s the difference?

As you search for homes online, you may see listings marked as a “contingent sale” or “pending” and understanding the difference can help you identify properties that are still open to offers.

What Does Contingent Mean?

When a home sale is listed as contingent, it means a buyer has made an offer, the seller has accepted it, but the deal hinges on one or more specific conditions happening in a pre-set time period. If the buyer does not meet the contingencies within the time frame, the agreement falls through.

What Does Pending Mean?

When a home’s status is listed as pending, the seller has accepted the offer and all contingencies have been met. Although a listing is no longer active once it’s pending, it will remain in that status until all the legal paperwork is completed and both parties have closed on the home sale.

Five Types of Contingent Sale Status

Contingent — Continue to Show

A home listed as “Contingent — Continue to Show” means the seller has accepted an offer with contingencies, but they encourage agents to continue to show the property. This status is often used if the accepted offer is perceived as likely to fall through. As a potential buyer, it may be wise to submit your offer as a backup.

Contingent — No Show

When a home is listed as “No-Show” it means the seller has accepted an offer with contingencies but it is likely to make it to closing and they no longer want to show the property.

Contingent — With Kick-Out (or Without)

A status listed as “Contingent — with Kick-Out” means the seller has accepted an offer with contingencies but, if another offer comes along that’s better, they can kick out the initial contract. If the home is “Contingent — without Kick-Out,” the seller cannot accept another offer unless the contingencies in the first, accepted offer are not met.

Contingent — Short Sale

A short sale is when the lender has agreed to sell the property for less than the mortgage’s remaining balance. This can be a very lengthy process, so a property is sometimes listed as “Contingent — Short Sale” to signify that backup offers are being accepted on the chance that the accepted offer falls through.

Contingent — Probate

A home is sold via probate court when someone dies without leaving their home to a specific party. When this happens, the state steps in and oversees the sale of the property. Similar to a short sale, this can be a lengthy process. The home may be listed as “Contingent — Probate” to indicate that backup offers are being accepted.

Three Types of Pending Status

Pending — Taking Backup Offers

If a seller has accepted an offer but there are some hiccups getting to the final closing, they can use this status to indicate that they are taking backup offers.

Pending — Short Sale

This status is used when the sellers have accepted an offer, the contingencies have been met, but it’s waiting on the lender’s approval. Since the short sale is priced below the remaining mortgage balance, the lender must approve it.

Pending — More than Four Months

If an offer has been accepted, contingencies have been met, but the listing has been stalled as “pending” for more than four months — this status can be used. A property could be pending for an extended period of time due to issues with paperwork, stalled negotiations, or construction delays.

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

You can always make an offer on a home at any stage of the process — but your chances of it being accepted depend on a number of factors, including the type of contingent or pending status. This is why it’s always important to work with a knowledgeable real estate professional who can help you navigate the market.
According to the NAR REALTORS® Confidence Index Survey, 5% of contracts were terminated in April 2021 — most of which fell out due to issues with the appraisal or financing. While the vast majority of home sales get to closing, a backup offer is never a bad idea if you’ve found a home you love.
Your agent can also help you craft an offer that stands out by using strategies like making an offer with little or no contingencies, speaking to the other agent directly, adding additional earnest money, or writing a personal letter to the sellers.