When looking for a new home with a real estate agent in the multiple listing service (MLS) or even on house-hunting sites like Zillow or Realtor.com, you'll likely see homes listed as either pending or contingent. What is the difference between pending and contingent? One is about to close, while the other has an offer accepted but must still meet contingencies. Read on to understand the differences between pending versus contingent and what each means for your home purchase path.
What Does Contingent Status Mean in Real Estate?
Contingent in real estate means an offer has been accepted, and the home has been taken off the market. It doesn't mean that the sale is finalized. When a home is contingent, the purchase and sale agreement has been signed, but contingencies still must be met. That's why a contingent home may not close.
Examples of Contingent Statuses
A contingent home is under contract, but that deal could fall through for reasons related to either the buyer or the seller. Here are examples of contingent statuses you can find on properties.
Contingent: Continue-to-Show (CCS)
In some cases, an active listing can be marked as contingent: continue to show or CCS. This usually means that multiple contingencies must be satisfied, and the seller and agent have decided to continue to show the property and even perhaps accept offers.
If the property is listed as CCS, there are steps you can take to help the seller realize your offer is serious. For example, if you have mortgage preapproval and make an earnest money deposit, the seller will likely remove the property from the market. You can also discuss strategies with your real estate agent to strengthen your offer.
No Show
If the property is contingent: no show, the seller has taken the property off the market and will no longer show the property or accept other offers. As a buyer, this puts you in a better position to finalize the sale. This status means certain contingencies still need to be met, but the seller is confident they will be.
Probate
In the case of a contingent property listed as probate, it means that the property is being sold because of the homeowner's death. Probate is the legal process of reviewing the will and assets of a person after they've died and then distributing the assets.
With or Without a Kick-Out Clause
A property that's listed contingent with or without a kick-out clause means there’s a deadline to fulfill all contingencies. When there's no kick-out clause, there’s no deadline in place. The property will close whenever the contingencies are met and the buyer and seller agree to close. When there's a kick-out clause, there is a set deadline.
Short Sale
A property that's listed as contingent with a short sale means that the seller, usually a bank or mortgage lender, will accept less money than is owed on the mortgage. In that case, the bank or mortgage lender has accepted an offer, but the short sale is still in process. In some cases, the short-sale process can take months to complete.
What Does Pending Status Mean in Real Estate?
A pending status in real estate means the home is in the process of closing. A pending property means the contingencies were met, and the sale is being processed.
Examples of Pending Statuses
There are various types of pending statuses that you might see. Here's what each means.
More Than 4 Months
If the property is listed as pending for more than four months, it means that it is updated automatically in the MLS. This happens when a listing has been pending for more than four months. If a transaction takes more than four months, it indicates that there may be some issues with the contingencies or that the pending sale is taking longer than expected.
Sometimes, it can also mean that the real estate agent forgot to change the status from Pending to Sold after closing.
Short Sale
Similar to the short sale contingent status, a pending property listed as a short sale means the property is going through the short sale process. If a property is short-sale pending, the property is most likely further along in the contingencies and is ready to close. For that reason, the seller is no longer accepting backup offers.
Taking Backups
If a property is listed as pending, taking backups means that although the real estate sale is pending, the seller is showing the house and is willing to take other offers. The seller accepts these offers as a backup if they believe the original offer may fall through for any reason.
Securing a Pending vs. Contingent Home
If you're a homebuyer, a pending vs. contingent home indicates how far in the purchase process you have reached. A pending home is usually ready to close unless it has certain examples like short sales or taking backups. On the other hand, a contingent home means you'll still need to meet all contingencies. Are you still researching lenders? Find the best mortgage lenders to finalize your new home purchase here.
Frequently Asked Questions
What are some common contingencies in real estate transactions?
Some of the most common include appraisal contingency, mortgage contingency, title contingency and home inspection contingency.
Can you make an offer on a pending or contingent home?
The property status depends on whether you can make an offer on a pending or contingent home. For example, if the property is on the contingent status with a continue-to-show, you could still make an offer.
How can I track the progress of a pending transaction?
If a pending real estate transaction isn’t listed as more than four months, short sale or taking backups, it is most likely a standard pending transaction. In that case, the buyer and seller expect the transaction to close without other contingencies.
About Alison Plaut
Alison Plaut is a personal finance and investing writer with a sustainable MBA, passionate about helping people learn more about wealth building and responsible debt for financial freedom. She has more than 17 years of writing experience, focused on real estate and mortgages, business, personal finance, and investing. Her work has been published in The Motley Fool, MoneyLion, and she regularly contributes to Benzinga.