Under Contract vs. Pending: A Home Buyer’s Guide to Status Tags

What does ‘under contract’ mean when buying a home?

When you find a home listing marked as “under contract,” it indicates that the seller has accepted an offer from a buyer, but the sale is not yet final. While under contract, there are typically contingencies in the buyer’s offer that need to be resolved before the sale moves forward. If contingencies are not met, the deal might fall through.

Contingencies while ‘under contract’

Here are some common types of contingencies in residential home sales:

• Financing contingency: A financing or mortgage contingency protects buyers who need to finalize a home loan. If the buyer fails to secure financing, they can withdraw without losing their earnest money deposit.
• Appraisal contingency: Lenders typically require an appraisal to confirm the home’s value before approving a mortgage loan. An appraisal contingency allows the buyer to either renegotiate their offer or freely walk away from the agreement if the appraisal comes in under the contracted offer price.
• Inspection contingency: The home inspection contingency clause allows the buyer to have a professional inspection of the property and then decide whether to move forward with the purchase. Significant issues discovered can lead to renegotiations, repairs, or even contract termination without consequences for the buyer.
• Home sale contingency: A home sale contingency says that if the buyer doesn’t sell their current home before a specific date, then the contract can be terminated without penalty. Making an offer contingent on the sale of an existing home is often necessary for buyers who need to use equity to afford the down payment or closing costs on a new house. Sellers are often wary of this clause.

Can I make an offer on an ‘under contract’ home?

While a home is under contract, it’s still possible, though less likely, for other offers to be considered. If contingencies fall through and the initial deal collapses, the property may become available again. However, it’s important to have realistic expectations and continue exploring other options in your home search.

What does ‘sale pending’ mean when buying a home?

When a home is marked as “sale pending,” it indicates that all the contingencies of an offer have been successfully met, and the sale is moving closer to finalization. Unlike properties under contract, a pending sale is further along in the transaction process. Here’s what this status typically implies:

• Fewer obstacles: All major hurdles, like inspections, appraisals, and financing, have been cleared.
• Closing phase: The parties are now in the final stages of the transaction, preparing for the actual transfer of ownership.

Can I make an offer on a ‘sale pending’ home?

While it’s technically possible to make an offer on a home with a pending sale, the likelihood of it being considered is quite low. At this stage, the seller and buyer have resolved most, if not all, of the contingencies and are just steps away from closing. Here are a few points to keep in mind:

• Backup offers: Some sellers may still accept backup offers in case the current deal falls through at the last minute.
• Low probability: However, since the sale is nearing completion, the chances of the original agreement collapsing are minimal.
• Focus on other listings: It’s often more productive to direct your attention and resources toward other properties that are actively seeking offers.

What does ‘active under contract’ mean when buying a home?

“Active under contract” is a somewhat unique status in real estate transactions because it indicates the seller has accepted a purchase offer, but they are still open to backup offers. Here’s more about what this listing tag generally means:

• Continued marketing: While an offer has been accepted and the property is under contract, the seller continues to show the home and is welcoming backup offers. This is often because the seller is not 100% confident in the offer from their current buyer, which may include contingencies that make the seller uneasy.
• A middle ground: This status is somewhere between “under contract” and “sale pending.” The seller is cautiously optimistic about the current offer but remains open to alternatives. They may want additional options because of their own moving or home-buying plans.

Can I make an offer on an ‘active under contract’ home?

Yes, you can still make an offer on a home that’s “active under contract.” Here are some points to consider:

• Backup position: Your offer would likely be considered a backup, stepping in if the current deal falls through.
• Evaluate the situation: Understand the existing contingencies and assess the likelihood of the current purchase offer not closing.
• Stay informed: Have your agent keep in touch with the listing agent so you can stay updated on the status of the current contract.

How often do offers fall through, and why?

Not every purchase offer leads to a successful home sale. While most home sale contracts typically close within 43 days, they can face delays or even termination. According to the August 2026 Realtors Confidence Index Survey:

• About 7% of contracts are terminated.
• Around 14% of contracts experience delays in settlements.
• Approximately 6% of contracts have delayed settlements specifically due to appraisal issues.

Home purchase contracts can fall through for several reasons, and the issue isn’t always with the buyer or seller. Common causes include:

• Home inspection issues: Problems uncovered during the inspection may be serious enough for the buyer to back out, depending on the contract terms.
• Financing issues: A buyer may have trouble securing a mortgage because of a loan denial, changes in their finances, or other lending issues.
• Employment changes: A change in the buyer’s employment or income could affect their ability to qualify for financing.
• Appraisal issues: If the home appraises for less than the agreed-upon sale price, the buyer and seller may need to renegotiate or find another solution.
• Contingency issues: Contingencies, such as selling the buyer’s current home, may not be met within the required timeframe.
• Title or deed issues: Problems with the property’s ownership records or title can delay or derail a sale.
• Other issues: Contracts can also fall apart because of unexpected circumstances, disagreements between the parties, or other issues covered by the purchase agreement.

What causes home offers to be rejected by sellers?

Sellers may walk away from negotiations for several reasons, especially when an offer doesn’t meet their expectations or comes with terms they’re uncomfortable with. Common reasons include:

• Low offers: An offer that falls well below the asking price may not be worth accepting for the seller.
• Too many contingencies: Buyers who include multiple contingencies can make an offer less appealing or introduce more uncertainty into the deal.
• Nervous or hesitant buyers: Sellers may lose patience when buyers take too long to make decisions or seem unsure about moving forward.

How to make a non-contingent offer with HomeLight’s Buy Before You Sell

A more appealing offer often comes with fewer contingencies, giving sellers fewer hurdles to worry about. Keeping only the contingencies you truly need can make your offer feel simpler and more certain.

One of the best ways to remove a home sale contingency from your purchase offer is through a Buy Before You Sell program. Real estate solutions companies like HomeLight make it easier than ever to use the equity from your current home to make a more competitive offer and streamline the entire process.

Here’s how HomeLight Buy Before You Sell works:

1. Apply in minutes with no commitment: Find out if your home is a good fit for the program and get your equity unlock amount approved in 24 hours or less. No cost or commitment is required.
2. Buy your dream home with confidence: Once you’re approved, you’ll have access to a portion of your equity in your current property. You’ll be able to submit a competitive offer with no home sale contingency at any time, regardless of how long it takes to find your new home. HomeLight’s near-instant Equity Unlock Calculator lets you estimate how much equity we can unlock from your current house.
3. Sell your current home with peace of mind: After you move into your new home, we will list your unoccupied house on the market to attract the strongest offer possible. You’ll receive the remainder of your equity after the home sells.

»Learn more: Ready to make a stronger offer without a home-sale contingency? Try our Home Equity Calculator to estimate your available equity before you make your move.

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Partner with a top agent to make a strong offer

The difference between under contract versus pending can be easy to overlook when you’re browsing homes. Both terms generally mean the seller has accepted an offer and the sale is moving toward closing. Understanding these statuses can help you know where a home stands and what to expect next. A real estate agent can help you interpret the status and guide you through the next steps of the transaction.

HomeLight can connect you with top-performing agents in your area who understand the nuances of contingent offers and how to negotiate effectively on your behalf.

Ask your agent about our innovative Buy Before You Sell program and how it can help you make a stronger, non-contingent offer. This modern program allows you to unlock the equity in your current home, providing the flexibility to buy your next home before selling your current one. Together, we can make your home-buying journey smoother and more successful.

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