Pending vs Contingent
When a property shows pending or contingent status on the MLS, it means the seller has accepted an offer but the sale has not yet closed. The difference between the two statuses indicates how likely the existing deal is to close and whether the seller is still accepting backup offers.
Contingent
A contingent listing means the seller has accepted an offer that includes one or more contingencies — conditions that must be met for the sale to proceed. Common contingencies: home inspection, appraisal, buyer's financing approval, sale of buyer's current home. The deal could fall apart if any contingency is not satisfied. Many MLS systems allow contingent listings to remain active for showings, and sellers may accept backup offers.
Pending
A pending listing means the sale is moving forward with all (or most) contingencies removed or satisfied. The deal is very likely to close. Most MLS systems stop showing pending properties to buyers, and sellers typically do not accept new offers. Some MLSs use subcategories: "Pending — Taking Backups" means the seller will still consider backup offers despite the pending status.
For investors
Contingent listings represent opportunities. If the existing deal falls apart (which happens in 10-20% of contingent transactions), a backup offer positions you to step in immediately. Pending properties are generally not worth pursuing unless you have reason to believe the deal will fail.
For wholesalers
When running comps, pending properties suggest the market is active at those price points but have not yet confirmed a sale price. Contingent sales should not be used as sold comps until they actually close. Use them as supporting data points only.