Contingent vs. Pending: What’s the Difference? (2024)

FAQs

Contingent vs. Pending: What’s the Difference? ›

The difference is that contingent listings still need to meet one or more specific conditions before moving forward. With pending deals, conditions have been met, and both parties are planning to move forward to closing. As a buyer, you may be able to make a backup offer on a listing that's under contract.

If a home is listed as pending, all contingencies have been met and the sale is further down the closing path, with most of the paperwork in place — but the transaction has not yet been completed. You are more likely to be successful making an offer on a contingent home than a pending one.

In most cases, putting an offer in on a contingent home is an option to consider. Although it doesn't guarantee you'll close on the home, it does mean you could be first in line should the current contract fall through. Putting an offer in on a contingent home is similar to the homebuying process of any active listing.

It all depends on how long the escrow process is and the agreed upon contingent time frame, but you can (usually) expect a house to go from contingent to pending in about nine days. According to Marquez, if you're working with the standard 30-day escrow, you're more or less waiting on contingencies to be removed.

Contingent – With No Kick-Out Clause

This means the seller can't accept another buyer's offer unless the current buyer can't meet the conditions of their offer. This provision protects the current buyer because they can't be “kicked out” unless they don't meet the contingencies.

If the seller's situation aligns with a contingency, they are free to walk away. But if it doesn't, trying to back out can be costly and futile.

Among contingent offers, less than five percent fall through, according to multiple sources. Broken offers may arise because the buyer isn't able to secure financing or because the seller isn't willing to lower their listing price after a low appraisal.

Why Do Sellers Not Like Contingency Offers? Oftentimes, sellers prefer not to accept contingency offers due to uncertainties in the sale process. Since contingency offers are conditional upon several factors, such as financing and inspections, they can delay or jeopardize the home's sale.

As a general term, contingent means “upon certain conditions being met.” In the context of real estate, it means that the buyer and seller have agreed to the terms of a purchase and sale agreement, but only if certain conditions are met.

While it won't hurt to look at a house that's listed as contingent, and potentially even submit a backup offer if possible, you should be prepared for the original contract to go through to close. In the event that the sale falls through, having already looked at the house can put you in a better position to get it.

Do you lose money on a contingent offer? ›

A contingent offer on a house is an offer with a protective clause on behalf of the buyer. The contingency communicates that if the clause isn't met, the buyer has the right to back out of the purchase. This practice protects the buyer from: Losing earnest money.

If there is an offer with contingencies, the buyer and seller generally have 30-60 days to ensure the contingencies are met. This is also known as the “contingency period.” This time frame can be shorter or longer depending on the terms agreed on but time is of the essence when contingencies are included.

Bottom Line Up Front. Homes under contract have an accepted offer, but there's still time to put in a competing one. Contingent home sales are on hold, but only for as long as it takes to meet stipulations. Pending homes are on their way to a final sale, barring any extraordinary circ*mstances.

The ability of a seller to back out of a contingent offer depends on the specific situation. If the conditions in the contract are not met, the seller can cancel a contingent offer.

So long as the seller is not bound by a sales contract, the seller may be able to change the asking price. The statute of frauds requires that a contract for the purchase and sale of real estate be in writing and signed by both the purchaser and the seller.

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.