When looking for a home to buy, you may come across home listings marked as "under contract" or "pending." In both cases, this signals that a seller has accepted a buyer's offer and a real estate contract has been signed. But beyond that, these statuses differ somewhat.
For those looking to buy a home, it's essential to understand the difference between pending and under contract and what each status means. We'll explain the differences between under contract vs pending contracts so you know what to expect as you navigate the home-buying process.
Differences between under contract vs pending
Here’s a quick comparison chart that gives an overview of the primary differences between a house under contract vs pending (also referred to as contingent vs pending):
| Under contract | Pending |
|---|---|
| The seller has accepted an offer, and both parties have signed a purchase and sale agreement. | Both parties have signed a purchase and sale agreement, and all contingencies have been met. |
| This stage of the process occurs right after the seller accepts an offer. | This stage of the process occurs after all contingencies have been met. |
| If the contingencies aren’t met, the buyer can walk away. | The buyer can breach the contract if they back out of the agreement. |
| The listing agent may accept backup offers. | Backup offers are no longer accepted, and the listing is off the market. |
We’ll further explain the difference between pending and under contract and the meaning of each status below.
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What does it mean to be under contract?
A home under contract is in the initial stage of the selling process. The seller has accepted a buyer's offer and both parties have signed a purchase and sale agreement.
The contract will outline details such as the offer price, closing costs, earnest money deposit, expected closing date, and any contingencies that must be met. The deal could fall through if the buyer backs out or if certain contingencies aren't met.
As for active under contract versus pending listings, some property listings will show as "active under contract." This means the seller has accepted an offer but is also accepting offers in case the current buyer falls through.
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What does pending mean?
Properties listed as "pending" are further along in the home-selling process. Pending is in the final stage before closing.
If a property listing shows as pending, it means the contingencies outlined in the purchase and sale agreement have been met and the deal is nearing closing.
At this point in the process, both parties complete the final preparations to close the deal, including finalizing financing and preparing documents.
Pending home contracts can fall through at this stage. For example, a buyer might get cold feet and change their mind. But if all contingencies have been met and they walk away from the deal, they won’t get their earnest money back.
Some listing agents may accept backup offers for properties that are pending closing. However, many agents don't accept backup offers at this stage. Homes that are pending closing are considered to be off the market.
Why are contingencies important?
Contingencies are conditions or actions that must be met for the real estate transaction to close.
Contingency clauses are outlined in a purchase and sale agreement.
Contingencies provide an extra layer of protection for the buyer and seller. If a contingency isn't met, either the buyer or the seller can walk away from the deal.
Here are some contingencies that buyers can include in a real estate contract:
– Home inspection contingency: A home inspection contingency clause allows a buyer to negotiate the price or cancel the sale and keep their earnest money if the inspection reveals issues with the property.
– Title contingency: This clause allows a buyer to back out of the contract if any title issues are found and can't be resolved. For example, if a title search finds a lien on the property, the buyer can walk away.
– Appraisal contingency: An appraisal contingency can serve as a safety net, helping you avoid overpaying for a home. With this clause, you can walk away from the deal and keep your earnest money if the house doesn't appraise for the amount you've agreed to pay.
– Mortgage contingency: A mortgage contingency clause protects a buyer by allowing them to back out of the deal without penalty if they cannot secure financing.
– Home sale contingency: This contingency protects a buyer from owning two properties at once. With this contingency clause, the purchase depends on the sale of the buyer’s current home. If the buyer’s current home doesn’t sell, they can walk away from the deal.
Related: Home inspection vs home appraisal: Learn the difference.
Can offers still be accepted?
Let’s review whether you can still make an offer on a house under contract or pending.
Can you make an offer on a home that's under contract?
Unless prohibited in the sales contract, you can usually make a backup offer on a home that is under contract. But the listing agent will only consider your offer if the initial contract is canceled.
Your backup offer is a contingency plan for the seller if the initial deal falls through. There are numerous reasons an offer might fall through, including difficulties securing financing, discrepancies in home appraisals, or undisclosed issues found during a home inspection.
Can you make an offer on a home that's pending?
It may be possible to make a backup offer on a home that's pending closing. However, since a property marked as pending is so close to closing, the chances of the deal falling through are low. Some agents accept backup offers at this stage — but many don't.
Better helps buyers get pre-approved and submit documentation quickly, making it easier for them to act fast if a pending sale reopens.
What are the chances of a home sale falling through?
The odds of a contract falling through are low. But it can and does happen.
According to the September 2025 REALTORS® Confidence Index report, only 6 percent of contracts were terminated in the three prior months.
It's more likely that a property under contract will fall through because it's very early in the home-selling process, and the contingencies haven't been met.
Once a contract is in the pending stage, it's much less likely to fall through.
Some reasons why a deal might fail before closing include:
– Issues with the property were discovered during a home inspection.
– The buyer is unable to get a home loan.
– There are unresolved title or lien issues.
– The appraisal is lower than the price the buyer agreed to pay for the home.
– The buyer is unable to sell their home.
Under contract vs pending FAQs
Here are some answers to commonly asked questions about the difference between pending and under contract listings in real estate:
What happens to my money if the deal falls through?
When a buyer makes an offer on a home, they make an earnest money deposit. That money is held in an escrow account until closing. If a buyer breaches the contract, they may not get their earnest money back.
But if certain contingencies aren't met and the buyer decides to back out of the deal, they will get their earnest money back.
When should you consider making a backup offer on a home?
If you like a house under contract, you may want to consider making a backup offer. A property that is under contract is still in the early stages of the home sale process.
The deal could fall through if contingencies outlined in the purchase and sale agreement aren't met.
What is the difference between an active option contract and a pending contract?
In some states, listings may be labeled as active option contracts. Active option contract means an offer has been accepted and the transaction is within the active option period. During this time, the buyer can legally back out of the sale and get their earnest money refunded.
Pending status indicates that all contingencies have been met and that the home is awaiting closing.
Can a buyer back out of a contract while the property is under contract?
Typically, a buyer can back out of a contract if certain contingencies outlined in the sales agreement aren't met. For example, if the buyer has issues finalizing financing with their lender and can’t get a mortgage, or if there are issues found with the property during a home inspection. But these contingencies must be outlined in the real estate contract.
Knowing the difference between pending and under contract status can help buyers make more informed choices
If a home is under contract or pending, the seller has accepted an offer, and both parties have signed a real estate purchase agreement. A property that is under contract still has conditions that must be met to close. A home that is pending is much further along — all contingencies have been met, and the deal is about to close.
You can put in a backup offer on a home that is under contract or pending. But keep in mind that the likelihood of a deal falling through is low, especially in the pending stage.
Before putting in an offer, you can use a mortgage calculator to estimate mortgage costs.
Need a mortgage lender? Better offers a quick and simple online mortgage application process. You can apply online, compare rates, and close faster.
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