You’ve received an offer on your house—congratulations! But after accepting it, the listing status on the Multiple Listing Service (MLS) changes to either “Contingent” or “Pending.” If you’re wondering what these real estate terms mean for your home sale, you’re not alone.
Understanding these statuses is crucial for managing your expectations, timeline, and risk in the dynamic real estate market.
What Does Contingent Mean in Real Estate? (The “If” Stage)
A contingent status means that a seller accepts a buyer’s offer, but the sale is not yet final. The deal is conditional on one or more specific requirements being met. These requirements, known as contingencies, must be met before the transaction can proceed.
Think of it as the “if” stage of a home sale. The deal will only close if certain conditions are met. This makes a contingent house a risky and uncertain period for a seller, as the sale falls through. A real estate agent can help a prospective buyer craft a purchase offer contingent upon these protections.
Common Contingencies in Real Estate:
This allows the buyer to conduct a professional home inspection and, if significant issues are found, gives them the right to negotiate repairs, request a credit, or even walk away from the deal and receive their earnest money deposit back. This earnest money acts as a good-faith deposit to show the buyer is serious.
This protects the buyer by making the sale contingent on the home appraising for at least the agreed-upon purchase price. If the property’s appraised value is lower, the buyer can renegotiate with the seller or cancel the purchase.
This is the most frequent reason contingent offers fall through. It states that the buyer’s offer is dependent on them securing a loan from a mortgage lender. Without this financing contingency, a buyer would be forced to proceed with a home purchase even if they couldn’t secure financing.
This ensures that the seller has clear and legal ownership of the property, free of any liens or disputes.
In some cases, a buyer’s purchase is dependent on the buyer successfully selling the current home.
If a current deal falls through, the seller can return the property to the market, but this wastes valuable time and can be frustrating.
The Contingent Listing and the “Kick-Out Clause” in Home Sale Contingency
To mitigate some of the risk of a contingent offer, a seller can include a kick-out clause in the purchase agreement. This allows you to continue marketing your home and accept backup offers.
What a Kick-Out Clause Means: If you receive a better offer while under contract, the kick-out clause allows you to give the buyer a specific amount of time (e.g., 72 hours) to remove their contingency and move forward. If they don’t, you can “kick out” their offer and accept the new one. This protects the seller’s interests and can be a strategic move in a hot market. A seller can also accept backup offers from other buyers in this scenario.
What Does Pending Mean? (The “Almost There” Stage)
A pending status is a much more secure position for a seller. It means that all outstanding contingencies have been met and waived. The sale is now just waiting for the final paperwork and closing table.
At this point, the buyer has likely received their mortgage commitment, the appraisal has been completed, and the inspection period has passed. The home is now officially considered to be “under contract” with a high probability of closing.
While it is still technically possible for a pending offer or a pending short sale to fall through (for example, if a title issue is discovered), it is far less likely than a contingent deal. The sales process is in its final stages.
The Key Differences: Contingent vs. Pending
The primary difference between contingent and pending, according to Bankrate, is the presence of outstanding conditions. A contingent home sale has certain contingencies that must be met, while a pending sale has cleared all of them.
| Feature | Contingent | Pending |
|---|---|---|
| Status | The deal is conditional on certain requirements being met. | All contingencies have been met and the sale is moving toward closing. |
| Risk | High risk. The sale can still fall through if contingent offers fall. | Very low risk. The sale is highly likely to close. |
| Action | A seller can accept a backup offer if the current deal falls through, particularly if the primary offer falls. | A seller is generally no longer accepting other buyers’ offers. |
| Stage | The “if” stage, where the deal is still uncertain. | The “almost there” stage, where the sale is nearly final. |
Can I Still Make an Offer on a House That Is Contingent?
While a seller has accepted a primary offer, you can still submit a backup offer on a contingent house, especially if the listing has a kick-out clause. If the initial deal falls through, your backup offer could be accepted. However, it’s generally best to focus on active pending listings to avoid the uncertainty of contingent listings. A knowledgeable real estate agent can advise potential buyers on the best strategy.
The Alternative: How a Cash Offer Skips the Uncertainty
The contingent phase, with its potential for delays and failure, can be a major source of stress for home sellers. This is where a non-contingent cash offer can be an attractive alternative.
A key benefit of selling to a company like iBuyHomes is that their offers are typically not contingent on financing or appraisals. This provides two significant advantages:
- Certainty: Once you sign the contract, the sale is virtually guaranteed. You bypass the entire risky “contingent” phase and can plan your move with confidence.
- Speed: Without waiting for bank approvals and appraisals, you can move directly to closing on a timeline that works for you, often in as little as a few days.
Fed up with the uncertainty of a deal that could fall through at any moment?
With iBuyHomes, you can skip the stress of contingencies and get a certain cash offer. It’s a guaranteed sale on your timeline, so you can sell with total confidence. We buy houses in Camden, Charleston, Orlando, and other cities in the U.S.
Ready to trade the risk for a sure thing? Get your free, no-obligation cash offer today.
