Contingent vs. Pending: What’s the Difference?

Real estate transactions involve multiple stages, and as a future real estate professional, understanding key listing statuses is essential. Two commonly used terms in Multiple Listing Service (MLS) listings are contingent and pending, indicating different home-buying points.

While both statuses mean an offer has been accepted, they have distinct implications for agents, buyers, and sellers. A contingent listing still has conditions that must be met before the sale can move forward, whereas a pending listing is further along in the process, often nearing completion.

For those preparing for a real estate career, knowing how to interpret these statuses can help you guide clients, negotiate more effectively, and prevent unexpected roadblocks in a sale. This article will explain what these terms mean, how they impact transactions, and why they matter in the real estate industry. Read on to learn the key differences between contingent vs. pending.

What Does it Mean When A House is “Contingent”?

A contingent listing in real estate means that an offer has been accepted, but the transaction is not yet finalized because one or more conditions must be met. These conditions, known as contingencies, provide legal protections for buyers and can significantly impact how a deal progresses. 

Why Contingencies Exist

Contingencies are included in real estate contracts to ensure buyers have an opportunity to verify important details before fully committing to to a purchase. Without them, buyers would face greater financial risks if unexpected issues arise. 

Common Types of Contingencies

• Inspection Contingency: The buyer has the right to inspect the property and negotiate repairs or back out if major defects are found.
• Financing Contingency: The sale depends on the buyer securing a mortgage loan. If financing falls through, the deal may be canceled. 
• Appraisal Contingency: Ensures the home’s value meets the lender’s requirements. If the home appraises for less than the agreed price, the buyer may negotiate or withdraw. 
• Home Sale Contingency: The buyer must sell their current home before completing the purchase. 

A property under a contingent status remains somewhat open to the market, depending on the contract terms. Some sellers may still accept backup offers in case the current deal does not close.

Real estate agents must closely monitor contingent transactions to ensure that deadlines are met and that any necessary negotiations are handled efficiently. If a contingency is not fulfilled, the deal could fall through, forcing the seller to relist the property. 

What Does It Mean When A House is “Pending”?

A pending status in real estate means that all contingencies have been resolved, and the sale is moving toward closing. At this point, the property is typically considered off the market, and new offers are unlikely to be accepted. 

How a Listing Moves from Contingent to Pending

Once all contractual conditions–such as inspections, financing, and appraisals–are satisfied, the deal progresses to pending status. This means the transaction is in its final stages, with the remaining steps including:

• The buyer is securing final mortgage approval. 
• Completing title searches and legal paperwork.
• Finalizing escrow and preparing for closing day.

While most pending transactions proceed smoothly, some unexpected hurdles can still arise, such as last-minute financing issues or title complications. Agents play a critical role in ensuring the process stays on track by coordinating with lenders, title companies, and any other involved parties. 

Different Types of Pending Statuses

• Pending – Taking Backup Offers: The seller is still open to backup offers in case the deal falls through.
• Pending – Short Sale: The property is under contract but requires lender approval, which can delay the timeline. 
• Pending – Do Not Show: The seller has stopped accepting showings and offers, indicating a high level of confidence in closing. 

Pending sales require less oversight than contingent listings, but agents must still stay involved to address any last-minute issues that could impact the deal’s completion. 

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How Contingent and Pending Statuses Impact Real Estate Transactions

Although contingent and pending statuses both indicate an accepted offer, they differ significantly in terms of risk, market activity, and the likelihood of closing.

Market Availability

• Contingent properties may still be open to backup offers or continued negotiations.
• Pending properties are typically off the market, with minimal chances for new buyers to step in. 

Timeline to Closing

• Contingent deals often take longer as buyers work through inspection, financing, or other conditions. 
• Pending deals move faster since contingencies have been resolved, putting the transaction closer to completion.

Risk of Falling Through

• Contingent sales carry greater uncertainty–if a contingency is not met, the deal may collapse.
• Pending sales have a much lower chance of failure, although last-minute issues can still arise. 

Role of the Real Estate Agent

• With contingent deals, agents must closely monitor deadlines, negotiate contingency removals, and keep transactions moving forward. 
• With pending deals, the focus shifts to ensuring a smooth closing process, handling final paperwork, and resolving any last-minute concerns. 

Real estate professionals must be able to explain these differences to clients, manage expectations, and navigate the sales process efficiently. Whether helping buyers explore contingent listings or ensuring sellers transition smoothly to closing, having a strong grasp of these statuses is essential for success in the industry. 

Elevate Your Real Estate Career with Kaplan

Understanding the nuances between contingent and pending statuses is crucial for any real estate professional aiming to navigate transactions effectively. At Kaplan Real Estate Education, we are committed to equipping you with the knowledge and skills necessary to excel in your real estate career. 

Why Choose Kaplan for Your Real Estate Education?

• State-Specific Licensing Courses: Our pre-licensing programs are tailored to meet the requirements of various states, ensuring you receive relevant and comprehensive instruction. 
• Kaplan Commitment to Pass: We are confident that with your dedication and our proven licensing program, you'll pass your exam on the first try. If not, take advantage of the Kaplan Commitment.
• Exam Prep Resources: We offer a range of materials designed to prepare you thoroughly for your licensing exams, including practice exams and Qbanks to mimic exam day, to increase your confidence and chances of success.
• Continuing Education: Stay current with industry trends and maintain your licensure through our diverse selection of continuing education courses. 
• Flexible Learning Options: With online classes, you can learn at your own pace and schedule, making it convenient to balance your studies with other commitments. 

By choosing Kaplan, you’re investing in a reputable institution dedicated to your professional growth in the real estate industry. Explore our offerings and take the next step toward a successful real estate career!