Contingent vs. Pending: What Do They Mean?

Have you ever had a frustrated client set their sights on a house only to find out it’s already under contract? It’s a common scenario, and it can leave everyone feeling stuck. The culprit? Listing statuses like ‘contingent‘ and ‘pending.’ These terms pop up all the time in real estate, but they’re not always clear, even to seasoned professionals. 

They have a direct impact on whether a buyer still has a shot at a home or if it’s essentially off the market. While both statuses mean the house is technically off the market, the level of certainty isn’t the same. And that’s where your expertise as a mortgage professional comes in. Knowing the difference will help you set realistic timelines, prepare for potential roadblocks, and keep your clients in the loop. 

This article is here to break it all down. We’ll explain what ‘contingent’ and ‘pending’ really mean, why they’re important, their common subcategories, and how to approach offers on these properties. Whether you’re helping a first-time buyer or someone who’s been through the process before, a clear understanding of these terms will make your job and their experience a whole lot smoother. 

What Does ‘Contingent’ Mean?

So, what does ‘contingent’ mean in real estate? According to Zillow, “Contingent in real estate, also known as a contingent offer, means the seller has accepted the offer, but certain conditions must be met before closing the deal. If those conditions are not met, the sale will fall through, and the house will return on the market.” 

Simply put, it means the seller has accepted an offer from a buyer, but the sale isn’t a sure thing yet. It’s a conditional acceptance – the seller is saying, “Yes, I’ll sell you my house, but only if these requirements are fulfilled.” For mortgage professionals, this is a critical distinction. A contingent offer means your client’s potential purchase is still in a bit of a gray area, and you need to be prepared for the possibility that the deal may not go through. 

Common Contingencies 

Most home sales include contingencies to protect the buyer and seller. Let’s take a look at the most common ones. 

Mortgage Contingency (Financing Contingency)

This contingency ensures the buyer can secure a mortgage loan for the property. It gives them a specific timeframe to get pre-approved and finalize their financing. If they fail to get the loan, they can withdraw from the deal without penalty. As a mortgage professional, it’s essential to work closely with your client to meet the financing deadline and prepare for scenarios where they may not qualify or find a better rate elsewhere. 

Inspection Contingency

This contingency is all about the home inspection. The buyer gets the home professionally inspected. If the inspection reveals major problems, they can ask for repairs, a price reduction, or even walk away from the deal. As a mortgage professional, you should always recommend a thorough inspection to your clients, especially for older houses. Unexpected repairs can throw their budget out of whack and even affect their ability to get the loan. 

Appraisal Contingency

This contingency makes the sale dependent on the property appraising for at least the agreed-upon purchase price. Lenders require appraisals to ensure the loan amount makes sense based on the property’s value. If the appraisal comes in lower than expected, the buyer can try to renegotiate with the seller or walk away from the deal. This is another area where your attention is critical. A low appraisal can impact the loan amount and potentially derail the transaction. 

Title Contingency

This contingency ensures the seller has clear ownership of the property and that there aren’t any liens or other issues with the title. A title search is usually performed to confirm this. Any unresolved title problems can delay or prevent closing. 

Home Sale Contingency

This contingency comes into play when the buyer needs to sell their current home before they can buy a new one. It makes the purchase contingent on the buyer successfully selling their existing home within a set timeframe. This kind of contingency can be tricky since it adds another layer of uncertainty to the whole process. As a mortgage professional, you’ll want to get a sense of how easy it will be for the buyer to sell their current home and factor that into how you view the deal. 

Notably, contingencies are a standard part of real estate transactions, as highlighted by the 2024 Zillow Consumer Housing Trends Report. About two-thirds of buyers (66%) reported that their final offer was contingent on the property passing a home inspection. Half (56%) said the same about securing financing (e.g., mortgage approval). A contingency on the property appraising at a minimum amount was also prevalent (52%). The least common contingency involved a mortgage rate buydown, with about a quarter of buyers (24%) securing this concession in their final offer.

What Does Pending Mean?

So, your client’s offer was accepted, the listing status became ‘contingent,’ and now you see that it has switched to ‘pending.’ What does that mean? As Zillow defines it, “Pending in real estate, also known as a pending offer, means the seller has accepted the offer with no outstanding contingencies, and the listing is no longer active. However, the home will remain pending until all legal work is processed and the deal is officially closed.” 

In simple terms, ‘pending’ means all those ‘ifs,’ the contingencies, have been met, and the sale is moving full steam ahead toward closing. The buyer has secured their financing, the inspection is complete, the appraisal is in, and any other agreed-upon conditions have been met. It’s a huge step closer to the finish line. For a mortgage professional, this is a crucial signal. It’s time to shift gears and focus on the final stages of the loan process. 

A ‘pending’ listing indicates that the deal is much more likely to close than when it was ‘contingent.’ While nothing in real estate is ever 100% certain until the closing documents are signed, ‘pending’ signals a significant reduction in risk. 

Key Characteristics of a Pending Listing

Here are some key characteristics of a ‘pending’ listing. 

Generally No Longer Actively Marketed

Once a listing is ‘pending,’ it’s typically no longer shown to other potential buyers. The seller has essentially accepted the offer and is committed to moving forward with that particular buyer. Some sellers, however, still allow backup offers just in case something falls through. 

Closer to Final Sale

As mentioned above, ‘pending’ signifies that the major hurdles have been cleared. The sale is in the final stages and is expected to close soon. 

Still Not a Done Deal

It’s important to remember that even though a listing is ‘pending,’ it’s not completely finalized. Some unforeseen issues can still arise before closing. For example, there might be a last-minute problem with the title, or the buyer might experience a sudden change in their financial situation. However, these types of issues are relatively rare. 

Breaking Down the Subcategories

While ‘contingent’ and ‘pending’ give you a general idea of a listing’s status, there’s more to the story. Both statuses often have subcategories that can give you even more detail, and for mortgage professionals, that extra information can be gold. It can help you figure out how likely a deal is to actually close, manage your workload, and keep your clients in the loop. Let’s take a closer look at these subcategories. 

Contingent Substatuses

Contingent: Continue To Show (CCS)

This one is a bit tricky. It means the seller has accepted an offer, but they’re still showing the house to other buyers. They’re basically hedging their bets in case the first offer falls through. For you, as a mortgage professional, a CCS listing means you need to be cautious. Your client’s offer is on the table, but they could still lose out to someone else. It’s a good idea to keep working with your client but also remind them to keep looking at other options. 

Contingent: No Show

This is a slightly better sign. The property is still technically ‘contingent,’ but the seller has stopped showing it to other buyers. This usually means they’re more serious about the current offer. While there’s still a possibility that things could go south, it’s less risky than a CCS listing. 

Contingent with/without a Kick-Out Clause

A kick-out clause lets the seller cancel the existing contract if they get a better offer, even after accepting the first one. The buyer usually has a short window (like 72 hours) to remove their contingencies if this happens. For you, this is a big deal. A listing with a kick-out clause means the deal is far from certain, and you need to be prepared for it to fall apart. Without a kick-out clause, the seller is generally locked in with the current buyer, which makes the deal much more secure. 

Contingent: Short Sale & Contingent: Probate

These are special cases. A short sale happens when the seller tries to sell the home for less than what’s owed on the mortgage, and the mortgage lender has to approve the deal. Probate sales happen when a home is being sold as part of an estate settlement. Both of these can take longer to close and involve extra steps, so you should be prepared for potential delays. 

Pending Substatuses

Pending: Taking Backups

Even though the listing is ‘pending,’ the seller might still be accepting backup offers. This is pretty common because deals can sometimes fall through even at this stage. For you, it means staying in touch with your client and being ready to jump in if the first deal falls apart. 

Pending: Short Sale & Pending: More Than 4 Months

Just like with contingent listings, ‘pending short sale’ means the sale still needs lender approval. ‘Pending: More Than 4 Months’ simply means the property has been pending for a long time. This can sometimes be a red flag indicating potential problems with the sale, but not always. It’s a good idea to check in with the listing agent and see what’s causing the delay. 

Numbers can provide valuable context for assessing the risks associated with these statuses. For example, HomeLight notes, “According to data compiled by the National Association of Realtors (NAR), it’s estimated that about 5% of pending offers fall through.” When it comes to contingent homes, HomeLight highlights that “According to data compiled by the National Association of Realtors (NAR), it’s estimated that less than 5% of purchase offers fall through.” 

Notably, “According to sellers in a 2024 Zillow survey, the most common reason why an offer fell through was issues with money, mortgage, or financing (40%).” Zillow also mentions that “The share of sellers that self-report having an offer fall through trends much higher than the share of for-sale listings that return from Pending to For Sale, which has wavered between 1% and 4% according to internal Zillow data.” 

These statistics are a good reminder that even when a sale seems to be on track, there’s still a risk that things could go sideways. 

Making an Offer on Contingent or Pending Listings

So, your client has their heart set on a house, but it’s listed as ‘contingent’ or even ‘pending.’ Does that mean all hope is lost? Not necessarily. While these statuses indicate an accepted offer, it doesn’t always mean the sale is guaranteed. As the statistics above show, even though a small percentage of these deals fall through, there’s still a chance. For mortgage professionals, understanding how to navigate these situations is crucial for advising your clients and potentially salvaging what might seem like a lost opportunity. 

Contingent Listings

A ‘contingent’ listing, as we’ve discussed, means the seller has accepted an offer, but there are still certain conditions to be met. This opens a window of opportunity for other buyers. Your client can submit a backup offer, essentially saying, “I’m interested in this property if the current deal falls through.” This is where your expertise can really shine. 

Here are some strategies to make a backup offer more competitive. 

Get Pre-approved

Getting your client fully pre-approved for a mortgage is absolutely essential. It shows the seller (and their agent) that your client is a serious buyer and has the financial capacity to close the deal quickly. This is especially important in a competitive situation. A pre-approval letter from a reputable lender carries a lot of weight. 

Offer a Strong Earnest Money Deposit

A strong earnest money deposit demonstrates your client’s commitment to the purchase. While the amount can vary, a larger deposit can make your offer stand out, especially when competing with other backup offers. It signals to the seller that your client is serious and willing to put their money where their mouth is. 

Be Flexible with Terms

If possible, advise your client to be flexible with the terms of their offer. This could include things like a shorter closing timeline, waiving certain contingencies (if appropriate and advisable), or offering a slightly higher price. Every situation is unique, and you should work with your client and their real estate agent to determine the best approach. 

Pending Listings

While a ‘pending’ listing is further along in the process, it’s not entirely out of reach. Deals can still fall through, even at this stage. While it’s less common, sellers sometimes accept backup offers on pending listings, especially if there are any lingering uncertainties about the primary offer. So, in this case, it’s worth checking in with the listing agent to see if they’re accepting backup offers. You never know what might happen. 

Practical Tips for Both Contingent and Pending

1. Communicate with the Listing Agent. Encourage your clients to have their real estate agent reach out to the listing agent for details. This can help clarify the seller’s situation and whether backup offers are being considered. 
2. Work Closely with Your Real Estate Agent. A good agent can help craft a competitive offer and navigate the nuances of contingent or pending listings. 
3. Be Prepared to Act Quickly. If the primary offer falls through, the seller may move quickly to the next in line. Having all the documents and finances ready can give your client an edge.

Real Estate Codes & Additional Tips

Real estate listings are full of abbreviations and codes that can seem like a foreign language if you’re not familiar with them. For mortgage brokers, being able to decipher these codes quickly is super important. It lets you get a snapshot of a property’s status and give your clients the best possible advice.

Real estate deals can get tricky, especially when you’re dealing with contingent offers, backup offers, and kick-out clauses. You’re a mortgage expert, not a lawyer, so you shouldn’t give legal advice. But you can tell your clients when they should talk to a real estate attorney. For example, a kick-out clause allows the seller to cancel the current contract if they get a better offer. An attorney can help your clients understand their options and what steps to take if that happens. 

The Abbreviations in Real Estate

• ACT (Active). The property is up for sale, and the seller is open to offers. 

• CON/CTG (Contingent). We’ve talked about this one a lot. It means the seller has accepted an offer, but there are still some “ifs” attached. 

• PND (Pending)/UAG (Under Agreement/Under Contract). This means all those “ifs” have been checked off, and the sale is heading towards closing. 

• BOM (Back On Market). The property was under contract, but the deal fell through. Now it’s available again. 

• SLD (Sold). The deal is done; the property has been sold. 

• OFF (Off-Market). The property is no longer being actively advertised for sale. This could be temporary or permanent. 

• WD/WDN (Withdrawn). Similar to “OFF,” this means the listing has been taken down from the market. 

• NEW. This simply means the property has just been listed on the market. The status remains in effect for 5 days and then changes to ACT. 

• CSO (Coming Soon). This indicates the property will be available for sale soon, but it’s not quite ready yet. There might be some final preparations happening. 

• PCG (Price Change). This means the seller has recently adjusted the listing price. It could be an increase or a decrease. 

• EXT (Extended). This usually means the listing agreement between the seller and the real estate agent has been extended. 

• CAN (Cancelled). The listing agreement has been canceled, and the property is no longer for sale (at least not through that agent/listing). 
• RAC (Recently Active/Reactivated). This indicates that the property was previously off the market (for example, withdrawn or expired) and has now been re-listed and is active again. 

Frequently Asked Questions (FAQs)

As your clients navigate contingent or pending listings, they’re bound to have questions. Here’s how you can address some of the most common concerns in a clear and straightforward manner. 

Can I make an offer on a contingent house?

Absolutely! A contingent listing means the seller has accepted an offer, but the sale depends on the buyer meeting certain conditions. This opens the door for backup offers. Your real estate agent can help you submit a backup offer, which means if the first deal falls through, you’re next in line. 

What happens if contingencies are not met?

If the buyer in a contingent sale can’t meet the agreed-upon conditions (like getting financing, a satisfactory inspection, or an appraisal at or above a certain price), they can typically back out of the deal without losing their earnest money deposit. That’s the protection contingencies offer. The seller can then move on to a backup offer, if there is one, or put the property back on the market. 

How do contingencies protect me as a buyer?

Contingencies protect you by giving you a way out of the deal if certain conditions aren’t met. For example, if the home inspection reveals major issues or you can’t secure financing, you can walk away without losing your earnest money deposit. Contingencies are there to make sure you’re not stuck in a deal that doesn’t work for you. 

What’s the difference between ‘contingent’ and ‘pending’?

‘Contingent’ means the seller has accepted an offer, but the sale is still conditional. ‘Pending’ means all those conditions have been met, and the sale is moving toward closing. Think of ‘contingent’ as ‘maybe’ and ‘pending’ as ‘almost definitely.’ 

Conclusion

Understanding the real estate market can feel like learning a new language, especially with terms like ‘contingent’ and ‘pending’ floating around. But as we’ve discussed, these aren’t just fancy words; they’re crucial indicators of where a property stands in the sales process. Knowing the difference between them is key to a smoother, more successful homebuying experience. ‘Contingent’ tells us there’s an accepted offer, but there are still hurdles to clear. ‘Pending’ signals that those hurdles are mostly behind us, and closing is on the horizon. 

For mortgage professionals, these distinctions are more than just helpful; they’re essential tools of the trade. You can assess the likelihood of a deal closing, anticipate potential snags, and prioritize your efforts accordingly. It’s all about knowing where to focus your energy for the best results. 

If you’re unsure about how to proceed or need help exploring mortgage options, don’t hesitate to reach out. At A&D Mortgage, we’re here to help you and your clients move forward with confidence. Ready to start? Contact us today to see how we can help make the homebuying process smoother and more straightforward. Let’s work together to get your clients into their dream homes.