What Does ‘Active With Contingency’ Mean?

A home that's active with contingency has an accepted offer -- but the deal is far from final

When a home is for sale, it is listed in the Multiple Listing Service (MLS), which is a large local database of homes for sale. Homes in this database are listed with a status.

If a house is available, it's listed as "active" in the MLS. However, some homes are listed as "active with contingency", also known as “active contingent.”

Buyers and sellers both need to understand active with contingency status, so sellers can decide when to use it, and buyers can decide what it means for their chances of buying their dream property. This guide will explain all that you need to know.

What Does ‘Active Contingent’ Mean in Real Estate?

Active contingent is a status on the Multiple Listing Service (MLS). This status indicates that a home is still for sale, but there is an accepted offer in process. The accepted offer is contingent upon or reliant upon certain conditions being met, and those conditions have not been met yet.

Each local area has an MLS, which is a large database of homes for sale. Most people buying a house use the MLS to find homes for sale, as it’s the source of info for most other websites displaying property listings. The real estate listings in the MLS contain plenty of information that potential buyers need to know, including the home's status.

A home that has no accepted offers and is for sale is listed as active, but as soon as a seller accepts an offer, that status changes. If the offer is contingent upon certain conditions being fulfilled, but those conditions haven't been met yet, then the property will be listed as either contingent or active contingent.

It will remain in this status until the preconditions are all satisfied, at which point the status changes to pending and, finally, sold.

Active Contingent vs. Contingent vs. Pending

Homes listed on the MLS go through multiple statuses before being sold. Here's what each of them means.

• Active contingent status means that the seller has accepted an offer with conditions that have not yet been satisfied, and the sale can't be completed until they are. Sellers usually still show properties that are in active contingent status because there's a chance the deal won't close if the conditions aren't all met.
• Contingent status is very similar to active contingent, because it also means that there's an accepted offer but with conditions to meet. However, while in some parts of the country, contingent and active contingent have the same meaning, in other areas, listing a home as contingent means that the home sale is specifically conditioned on the buyer's other property selling.
• Pending status means that the property has moved on from contingent status. All of the preconditions of the sale have been met, and the only thing left to do is wait for closing and for the sale to finalize.

The table below shows the key differences between each status.

Types of Homebuying Contingencies

It’s important to understandwhat kinds of contingencies could result in a property being listed with the active with contingency status.

Buyers can make an offer contingent on almost anything they want -- although, of course, there is no guarantee that the seller will accept the precondition. However, some of the most common homebuying contingencies that buyers include in an offer for sale include the following:

• Home sale contingency: A buyer does not have to purchase the home until the buyer's own house sells.
• Title contingency: A buyer doesn't have to purchase the home until the seller can deliver a clean title, which means there are no competing ownership claims on the home.
• Home inspection contingency: A buyer doesn't have to purchase the home until an inspector has walked through the home to assess its condition and identify any problems. If the inspection identifies issues, the buyer can walk away from the sale, negotiate the price, or request repairs.
• Mortgage contingency: A buyer doesn't have to purchase the home unless the buyer secures financing for it. Often, the buyer will specify a maximum rate for the mortgage contingency.
• Appraisal contingency: A buyer doesn't have to purchase the home until a professional appraiser has determined that the market value of the home is at least as high as the price the buyer is paying for the property.

When the buyer puts these or other preconditions on the home's sale, then the seller will typically list the property as active with contingency after accepting the offer. After the conditions are satisfied, the status of the home will move to pending.

What Active Contingent Means for Buyers and Sellers

Buyers need to understand different statuses on the MLS so they can decide if they want to look at a property or not. If a home is listed as active contingent, there's a good chance it will eventually be sold to the buyer with the current offer -- but there is no guarantee. Other buyers may still see the home and even make backup offers.

When a seller lists a property as active with contingency, they tell buyers that there's still a chance the deal will fall apart if preconditions aren't met. Since there is a big difference between active contingent vs. pending, sellers can choose this status if they want to continue to attract potentially interested buyers.

The table below provides quick insight into the meaning of active with contingency for each party.

Active Contingent Home Listing FAQs

Still want to know more details about active contingent properties? Check out these answers to frequently asked questions.

Are Active Contingent Properties Still on the Market?

Active contingent properties are still on the market. There is an accepted offer, but the offer has preconditions that must be fulfilled. If any of the preconditions aren't met, the buyer could walk away from the sale, and the home would be available. Buyers often view active contingent listings and make backup offers in case the current deal doesn't close.

Can You Make an Offer on an Active Contingent Property?

You can make an offer on an active contingent property. However, the seller can accept your offer only if one of the preconditions included in the current accepted offer is not fulfilled.

How Long Does Active Contingency Last?

A home can stay in active contingent status for as long as the purchase contract allows and as long as it takes to satisfy the preconditions of a sale. This is usually around 30 to 60 days.

Can You Still Show a Home That’s Active with Contingency?

Sellers can still show a house that is active with contingency. However, they can only accept backup offers. Sellers must move forward with the original deal unless the purchase contract allows the seller to walk away from the current offer or the buyer determines that a precondition for purchase has not been met and decides not to move forward.

Final Thoughts: Should You Make an Offer on an Active Contingent Home?

If you are a buyer interested in a home that is shown as active contingent, you can make a backup offer, but you have a reduced chance of that backup offer being accepted since it’s likely the current deal will close once the preconditions are met. Even if your heart’s set on that home, you should keep looking for other properties.

Whether you're making an offer on an active home or an active contingent home, your offer will be stronger if you are prequalified for a home loan. Reach out to Freedom Mortgage today to begin the prequalification process so you are ready to move forward when your dream home comes along.