What Is the Difference Between Pending and Active Under Contract?

Navigating the real estate market requires understanding various listing statuses, which can be confusing for prospective buyers and sellers. Terms like “pending” and “active under contract” indicate different stages of a property transaction. Understanding the distinctions between these terms is important for anyone looking to buy or sell a home, as they signal distinct opportunities or limitations within the housing market and whether a property is still available for other offers.

Understanding Active Under Contract

When a home is listed as “Active Under Contract,” the seller has accepted an offer, but the sale is not yet finalized. This status means the transaction is in its early stages, and certain conditions, known as contingencies, must be met before closing. The property remains on the market because the agreement depends on these conditions being satisfied. Sellers often continue to accept backup offers during this period, providing a safety net if the initial deal falls through.

Common contingencies for an “Active Under Contract” status include a financing contingency, requiring the buyer to secure a mortgage within a specified timeframe. An inspection contingency allows the buyer to have the home professionally inspected and negotiate repairs or withdraw if significant issues are found. An appraisal contingency ensures the property appraises at or above the agreed-upon sale price, protecting the buyer and lender.

A sale of buyer’s home contingency may also be in place, meaning the buyer’s current residence must sell before they can complete the purchase. If any of these conditions are not met, the buyer has the right to terminate the contract without penalty, and the seller can then consider backup offers.

Understanding Pending

A “Pending” status in real estate indicates that major contingencies in the purchase agreement have been met or waived. This signifies the transaction is moving much closer to its final closing. Once a property moves to pending, it is no longer actively shown to other potential buyers, and sellers stop seeking or considering backup offers.

This stage represents a more advanced point in the transaction compared to “Active Under Contract,” suggesting a higher likelihood of the sale successfully closing. While a pending sale is not yet a closed deal and can still fall through due to unforeseen issues like financing problems or title complications, such occurrences are less common at this stage. The pending status means the buyer and seller are making final preparations for ownership transfer.

Comparing the Statuses

The distinction between “Active Under Contract” and “Pending” lies in the status of contingencies and the likelihood of the sale reaching completion. In an “Active Under Contract” scenario, contingencies remain in play, meaning the deal’s finalization depends on specific conditions being fulfilled. This phase lasts several days to weeks, allowing time for inspections, appraisals, and loan approvals. Conversely, a “Pending” status suggests that most conditions have been satisfied, and the transaction is nearing its conclusion, often within days or weeks.

For prospective buyers, these differences have implications. A property “Active Under Contract” still presents an opportunity to submit a backup offer, which a seller may consider if the primary deal fails to close. Sellers keep these listings visible to maintain interest and have alternative options. For a “Pending” property, the window for other buyers to make an offer is closed, as the deal is more secure and the property is off the market. While it is possible to inquire about a pending property, the chances of an offer being accepted are low.

From a seller’s perspective, “Active Under Contract” provides protection by allowing them to entertain backup offers, minimizing potential delays if the initial buyer withdraws. Moving to “Pending” status signifies that uncertain stages of the transaction have passed, and the focus shifts to final preparations for closing. This distinction helps both parties understand the stability of the agreement and plan their next steps, whether continuing a home search or preparing for a move.