Contingent vs. Under Contract vs. Pending
Think back to the last time you were searching for homes. If you're actively working to find a home, that may have been just a few minutes ago.
Chances are you saw terms while searching that you may or may not know the true meaning of. That can be frustrating, especially if you've found a home you love and it's marked "under contract." And if you're thinking about selling, you're probably wondering what all the different stages are between accepting an offer and handing over the keys. This post walks through the three terms you're most likely to run into, with examples from deals we see here in Bozeman every week.
Check out our YouTube video, which covers these terms in more detail:
What Does "Contingent" Mean in Real Estate?
A home listed as contingent has an accepted purchase offer, but the sale depends on one or more conditions being met before it can close. Those conditions are called contingencies. If any of them isn't satisfied, the deal can fall apart and the home goes back on the market.
The most common contingencies are:
- Home inspection. The buyer can renegotiate or walk away based on findings.
- Financing. The buyer's mortgage has to be fully approved.
- Appraisal. The home has to appraise at or near the purchase price.
- Sale of the buyer's current home. The buyer needs to close on their existing property first.
- Title. The title has to come back clean, with no unresolved liens or ownership disputes.
When a listing shows as "Active Under Contract" on the Big Sky Country MLS here in Montana, that's the local version of contingent. An accepted offer is in place, and the seller is still taking backup offers in case the deal falls through.
What Does "Under Contract" Mean?
A home is under contract when the buyer has submitted an offer, the seller has accepted it, and both parties have signed the purchase agreement. Both sides are committed to the transaction, and it moves forward as contingencies are met or waived.
Here's where it gets confusing: "under contract" is sometimes used interchangeably with "contingent," and sometimes it signals that contingencies are nearly resolved. Usage varies by MLS and region. On the Big Sky Country MLS, you'll often see "Active Under Contract" for homes that are under contract but still accepting backup offers, and "Pending" once contingencies have cleared.
The practical way to think about it: under contract covers the whole active-deal phase between offer acceptance and closing. Contingent is the sub-stage when conditions are still being worked out.
And yes, a deal that's under contract can still fall through. In some cases you can still make an offer on a property listed as under contract, usually as a backup offer.
What Does "Pending" Mean?
A home is pending (sometimes called "deal pending") when the buyer and seller have met each other's terms and all contingencies have been resolved. The home comes off the market at this point. The deal hasn't officially closed yet, but pending is the finish line.
Pending deals almost always close. There's still a small chance one can come back on the market if something catastrophic happens with the inspection, appraisal, or financing at the last minute, but the odds at this stage are low.
Contingent vs. Under Contract vs. Pending: Side-by-Side
| Status | Offer Accepted | Contingent | Still Taking Offers? | Typical Duration | Likely to Close? |
|---|---|---|---|---|---|
| Contingent / Active Under Contract | Yes | Yes | Often yes, as backups | 2 to 8 weeks | Around 85 to 95% |
| Under Contract | Yes | Resolving or cleared | Sometimes, as backups | 2 to 4 weeks | Around 95% or higher |
| Pending | Yes | All cleared | No | A few days to 2 weeks | Around 99% |
Can You Still Make an Offer on a Contingent or Pending Home?
One of the most common questions we get from buyers in Bozeman.
On a contingent home: often yes. Many sellers keep accepting backup offers while a contingent deal is being worked through. A backup offer is a secondary offer that activates automatically if the primary deal falls apart. It costs you nothing to submit and puts you first in line. If you see a home you love that's already contingent, ask your Realtor to reach out to the listing agent.
On an under-contract home: sometimes. Some sellers still accept backups, especially early in the process. Worth asking.
On a pending home: almost never. Once a home is pending, the deal is essentially done and most sellers stop taking offers. In the rare case a pending deal falls apart, the home usually returns to active status on the MLS, and that's when you'd submit an offer.
What Can Cause a Deal to Fall Apart?
Here's what's actually happening behind the scenes during the contingency period, and where deals most often get stuck:
- Home inspection contingency. The buyer hires an inspector, usually 7 to 14 days after the offer is accepted. If the inspection turns up significant issues, the buyer can renegotiate the price, ask for repairs, or walk away. This is the most common reason contingent deals fall through in our market.
- Financing contingency. The buyer's lender has to fully approve the mortgage, beyond just a pre-qualification. That typically takes 21 to 30 days. A denied loan can end the deal, and so can a last-minute change in the buyer's credit, job, or debt.
- Appraisal contingency. The lender orders an appraisal to confirm the home is worth what the buyer is paying. If it appraises low, the buyer and seller have to renegotiate, the buyer has to bring extra cash, or the deal falls apart.
- Home-sale contingency. The buyer needs to sell their existing home to fund the new purchase. These are more complex and slower. We counsel sellers carefully before accepting one.
- Title contingency. The title company researches the property's ownership history. If they find liens, unresolved ownership claims, or other issues, those need to be cleared before closing.
If you're selling, setting the right contingencies protects you. It makes sure everything lines up before you head into escrow.
Timeline: From Contingent to Closed
Here's what a typical deal looks like from offer acceptance to closing in our market:
- Days 0 to 1. Offer accepted, status changes to contingent or active under contract. Earnest money deposited.
- Days 1 to 14. Home inspection. Buyer may request repairs or credits.
- Days 10 to 14. Appraisal ordered by the lender.
- Days 14 to 21. Inspection and appraisal contingencies typically removed.
- Days 21 to 30. Financing fully approved, underwriting clears.
- Status changes to pending. All contingencies cleared.
- Days 28 to 30. Final walkthrough.
- Day 30 (or thereabouts). Closing. Title transfers. The home is sold.
Bozeman deals tend to move on the faster end of this range when there's no home-sale contingency. Luxury properties and those with unique financing (ranch loans, jumbo mortgages, cross-border buyers) usually take longer.
Frequently Asked Questions
Is contingent the same as under contract?
These terms overlap but have different meanings. Contingent means an offer has been accepted, but conditions like inspection, financing, or appraisal are still being worked through. Under contract is a broader term meaning a signed purchase agreement is active. In many MLSes the two are used interchangeably. In others, under contract signals that contingencies are nearly resolved. The Big Sky Country MLS in Montana uses "Active Under Contract" to flag a property with an accepted offer that's still accepting backup offers.
Can a contingent offer fall through?
Yes. Roughly 4 to 6 percent of real estate contracts fall through nationally, and contingent deals are the most likely to fail. Common reasons include failed home inspections, mortgage denial, low appraisals, or the buyer being unable to sell their existing home within the contingency window.
What does "active contingent" mean?
"Active contingent," sometimes shown as "Active Under Contract," means the home has an accepted offer with contingencies still pending, and the seller is still accepting backup offers. If the primary deal falls apart, a backup buyer can step in without the seller having to relist.
Does contingent mean the house is sold?
No. A contingent home has an accepted offer that could still fall through if any of the contingencies go unmet. The home is considered sold only after closing is complete and the title has transferred to the new owner.
What's the difference between pending and under contract?
Under contract is the earlier stage, with contingencies still being worked through. Pending means all contingencies have been resolved, and the deal is waiting only for the closing date. Pending deals almost always close. Under contract deals fall through more often.
How long does a house stay contingent?
Typically 30 to 60 days. Home inspection contingencies usually clear in 7 to 14 days, financing in 21 to 30 days, and appraisal in 10 to 14 days. More complex deals, especially those with a home-sale contingency, can stretch 60 days or longer.
What happens if the buyer's financing falls through?
If the buyer has a financing contingency and their loan is denied, they can typically back out of the deal and recover their earnest money deposit. The home then returns to active status on the MLS, and the seller can pursue backup offers or relist.
It doesn't have to be confusing.
If you're buying or selling in Bozeman and want someone to walk you through the process, we're happy to help. Contract status is just the starting point. The real work happens during the contingency period, where an experienced Realtor can make the difference between a deal that closes and one that falls apart.
Let's chat. Call Broker Tamara Williams at 406.223.6823.
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