What Do Pending or Contingent Really Mean?
You are browsing on Zillow, Realtor, or another home search App of your choice. The word "Pending" or "Contingent" is next to your home of interest. And, you wonder, what does this really mean?
Every home listed for sale feeds from a place called the Multiple Listing Service (or MLS) to Zillow, Realtor, and other websites. When the "Status" of a property becomes updated, it feeds to or is pushed to these different places. Pending and Contingent are just two of the many statues a property may display while listed.
Contingent
This means the seller accepted an offer but chose to keep the listing active in case the prospective buyer doesn't meet certain contingencies. Depending on the specifics, it might still be available for purchase!
Contingent with Continue to Show: the seller may accept a backup offer if the current contract falls through.
Contingent with Kick Out Clause: the seller agreed to provide the buyer time to resolve an item in their contract to purchase, but only for a limited time before the seller may accept a backup offer.
Contingent with No Show: The seller agreed to accept a contract with a contingency (for example, the buyer may have a home to sell) but feels the buyer will be able to perform.
Pending
The provisions on a contingent property were successfully met, and the sale is expected to close.
Why Is This Important?
Shopping contingent or pending homes could be a great way to make offers with less competition in a strong seller's market with low inventory.