Home Buying: Under Contract vs. Contingent vs. Pending

When a home is under contract, it means that there’s an accepted offer, and that both the buyer and seller are in agreement when it comes to the selling price. However, this is just the formalization of an accepted offer—it doesn’t account for any conditions that must first be met, or contingencies. At this point, the seller can still accept other offers and the buyer can still back out if a home inspection turns up an undisclosed or severe issue with the property. Bottom line: There’s an accepted offer, but still time to put in a competing bid on a dream home.

A contingent designation means a home sale is in limbo until certain criteria are met. The sale can’t move forward until the buyer or seller fulfill agreed-upon expectations. This might involve a sales contingency, which halts the sale until the buyer sells their existing home. Or, it could involve a repair contingency that the seller is responsible for. There’s typically a contingency period of 30 to 60 days. Bottom line: If the parties meet contingencies, the sale moves forward. If not, it falls through.

After waiving or fulfilling all contingencies, a home sale is pending. Technically, the sale hasn’t closed yet, but at this point, the property is taken off the market and the seller can’t accept any offers. The only things standing between a pending home and the final sale are the appraisal and financing. If one or both falls through for any reason, the sale will void and the home will go back on the market. That said, homes that reach the pending stage are usually well on their way to closing, with most factors accounted for. Bottom line: Pending homes are as good as sold, unless an extraordinary situation arises.