What's The Difference Between Contingent and Pending?

In this post, I'll discuss the difference between contingent and pending in a real estate transaction.

What does contingent mean?

Merriam-Webster defines "Contingent" as: "Dependent on or conditioned by something else." which is accurate, but it also defines it as, "likely but not certain to happen." which is also true - especially in real estate.

A home listed as contingent means an offer has been made and accepted, but for the deal to move forward, certain conditions must be met. These contingencies are written into the purchase agreement or sales contract. If one or more of the conditions aren't met within a certain timeframe, the sale of the home could be in jeopardy.

Some common contingencies are:

• Home Inspection Contingency
• Financing Contingency
• Appraisal Contingency
• Title Contingency
• Home Sale Contingency

What does pending mean?

If a real estate listing is “pending” this means that the contingencies mentioned above have been met and the sale is being processed. The seller’s agent and seller are confident the home will proceed to closing. You could technically still submit an offer on the home, but it would only be considered a “Backup Offer” and couldn’t be considered unless the current pending sale falls through.

The Bottom Line

Contingencies frequently play a factor in the sale of a home. For a buyer, contingencies protect your best interests but can cause delays in the deal if you’re inflexible. 

For the seller, contingencies can sometimes hold the sale of your home up and cause stress, but are necessary evils to make the sale happen.

For both the buyer and the seller, a pending home sale usually means (but, not always!) that the transaction is pretty much a done deal.

Either way, your real estate agent should be able to advise you on the best steps to take to ensure the process is as smooth and stress-free as possible.

If you’d like more information on contingencies, including details on the various types and how to make an offer on a home that’s contingent, read my blog post, “What Does Contingent Mean on a Home For Sale?”

   By Ashley Melton, Realtor®