When Does a House Go From Contingent to Pending?

The real estate market uses specific terms to describe the different phases of a home sale. “Contingent” and “pending” are two common statuses that signal distinct stages in a property transaction. Understanding these terms is important for both buyers and sellers, as it provides clarity on the likelihood of a sale progressing.

What “Contingent” Status Signifies

When a home is listed as “contingent,” a seller has accepted an offer, but the sale is not yet final. Completion depends on certain conditions, known as contingencies, being met within a specified timeframe. These contractual requirements protect both the buyer and the seller, ensuring fundamental aspects of the deal are satisfactory before closing.

Common contingencies are included in purchase agreements. An inspection contingency grants the buyer the right to have the home professionally inspected and to negotiate repairs or withdraw if significant problems are found. An appraisal contingency makes the sale dependent on the home appraising for at least the purchase price. If the appraisal comes in low, the buyer may renegotiate the price or cancel the agreement.

A financing or loan contingency allows the buyer a set period to secure a mortgage loan. If the buyer cannot obtain financing, they can back out of the deal without financial penalty. A sale of current home contingency means the buyer’s purchase is conditional upon them selling their existing property. During the contingent phase, some sellers may continue to show the property or accept backup offers.

What “Pending” Status Indicates

A “pending” status signifies that all contingencies in the purchase agreement have been satisfied or formally waived. This stage indicates a significantly higher probability of the sale closing compared to a contingent status.

During the pending phase, various final activities occur before closing. These include the buyer securing final mortgage approval, conducting title searches, and preparing closing documents. The process culminates with the scheduling of the closing date, where ownership officially transfers.

Once a home enters pending status, it is considered off the market, and sellers do not entertain new offers. While it is possible for a pending sale to fall through, such instances are less common than with contingent listings. The transition to pending signals that major hurdles have been cleared, increasing confidence the deal will finalize.

The Transition from Contingent to Pending

A house transitions from contingent to pending status when all conditions in the purchase agreement have been met or formally waived by the buyer. This involves specific actions to resolve initial uncertainties.

Satisfying contingencies involves actions like the successful completion of a home inspection with agreeable resolutions. An appraisal at or above the purchase price, or the buyer receiving full loan approval, would fulfill those contingencies. A buyer might also waive a contingency, indicating willingness to proceed even if a condition is not fully met, though this carries risks. Once conditions are satisfied or waived, the buyer’s agent sends a notification to the seller’s agent.

After this notification, the property’s listing status is updated on the Multiple Listing Service (MLS) by the seller’s agent or broker to reflect the change to “pending.” For the buyer, this status change solidifies their commitment and brings them closer to ownership. For the seller, it means the property is effectively sold, with only final administrative steps remaining before closing.