When you see a house listed as available, it means that the seller has committed. But the seller is not final yet. The contract is contingent on the fulfillment of certain conditions. If these conditions are not met, the buyer can back out, or the seller can withdraw the property from the market.
Think of it this way. The house was “bought” but not officially off the table. When a listing on a site like Zillow or the MLS says possible, it indicates that the property is under contract.
Why is this important? For buyers, you still have a chance to close the deal. Especially if the first deal doesn’t work out or you want to make a backup offer. For traders, the potential is both good and dangerous. It shows progress towards sales. But the deal can still fail if the buyer fails to meet your terms.
So in short, possible = “Yes, but not yet.” It’s a middle ground between “available” and “sold out.”
2) Contingent vs Pending vs Under Contract
When you’re looking at real estate listings. You are always waiting, or see words like under contract. They sound similar but do not mean the same thing. Here is an explanation in English.
A potential house is one that the seller has committed to. But the deal depends on several factors. For example་. Approve the loan to the buyer; If any of these conditions are not met, the deal could fail, and the property could go back on the market.
A pending family means that all the basic requirements have been met. At this point, the deal was heading towards closing, and it wasn’t. There is a very low chance of it ending. Think of the “waiting” as being ahead of the finish line.
Under Contract is the generic term for any committed offer that has not yet closed. A prospective or pending property is technically “under contract.”
Quick Comparison Table
| Status | What It Means | Buyer Options | Seller Options |
|---|---|---|---|
| Contingent | Offer accepted, but conditions must be met | Can sometimes place backup offer | Can keep showing home if kick-out clause |
| Pending | Contingencies cleared, deal close to final | Rare chance to jump in, depends on state | Usually just wait for closing |
| Under Contract | Blanket term for any accepted but unclosed deal | Same as contingent or pending status | Bound by contract, limited flexibility |
Final word for buyers: If you see “potential”, don’t buy it. You may still have a chance. If it’s “pending”. The chances are very small. But if something unexpected happens, it doesn’t hurt to keep an eye out.
If the buyer is strong and the terms are realistic, then it’s worth it. The waiting state means you are almost there. But don’t drink champagne until closing day.
This clears up the confusion between prospective and pending and the broader term under contract.
3) The Big Four Contingencies (and What Could Go Wrong)
When you see “potential” in a real estate listing. That usually means the deal hasn’t closed yet. Most contracts are encapsulated in a safety net called contingencies. They protect buyers and sometimes sellers. If a condition is not met, the deal could fail. Let’s look at the four main ones.
Investigation emergency announcement
This is the buyer’s right to hire a home inspector after acceptance. It usually occurs within 5 to 10 days. The inspector will check the roof and electrical wiring, plumbing. Hundreds of small items, including the foundation, are inspected. If you have a serious problem, for example, mold in the basement and cracks in the foundation. The buyer must ask the seller to repair them. Prices should be reduced for the transaction. dangerous་. If the seller refuses to negotiate and the buyer backs out, the property goes back on the market.
The sudden significance of the assessment
When a buyer uses a mortgage, the lender must prove that the property matches the agreed-upon price. The value is then calculated. If the appraiser says the property is worth less than the agreed-upon price, then the property is worth more. The bank cannot lend the full amount. Consumers now have a choice. Pay the difference out of pocket. Negotiate with the seller again. Or go back. In this case, the deals don’t always work out. Especially in hot markets where trade wars drive prices above the set values.
Financial Contingency: How Does It Work?
Even if you are pre-approved, you may lose your loan. Perhaps the consumer lost his job. Collect debts. Or the lender may run into problems when it comes to guarantees. A financing contingency gives the buyer time (usually 30-45 days) to secure the loan. If they can’t, they can walk away without losing their down payment. From the seller’s point of view, this is the biggest concern. You took your house off the market and realized the buyer’s money wasn’t secure.
Home Sale Contingencies and Exit Clauses
This clause ties your sale to the buyer selling their previous home in the first place. Basically, “If I can sell mine, I’ll buy yours.” Sellers generally don’t like this. Because it creates a linear reaction that can last for weeks. To protect themselves, sellers added an exit clause. If another strong supply comes, the first buyer has a short time. Approximately 48 hours. This prevents merchants from waiting forever.
👉 Although these contingencies are meant to protect both parties, they also create obstacles. They know how to work. If you know what can go wrong,
4) MLS Status Variants You’ll See
When looking at property listings, you’ll see little signs that can be confusing for those new to the property market. These topics include Active Conditions: No withdrawal, with withdrawal. Or words like waiting for a reservation may sound like internal code.
Definition of Upcoming Events
This means that even if the seller accepts the promise, the seller depends on several factors. (such as a check or fund) The asset is not “gone” yet. Because these conditions still need to be met. Many buyers are still eyeing properties that are being foreclosed on.
No emergency withdrawals and no withdrawals.
This is where things get complicated. If the listing says “Potential — No Withdrawals.” The buyer basically has first refusal. On the other hand, “Potential — with withdrawal” gives the trader more flexibility. If only someone could continue to show the house. If someone makes a stronger offer, the first buyer has a short shelf life. (usually 48-72 hours) to remove or remove their convulsions.
Waiting. — Show to be continued. (or show to reserve) Meaning:
This symbol appears when the seller has made a commitment but is still open to canceling the commitment. It’s like, “We’re under contract, but if things don’t work out, you might leave later.”
Keep in mind that MLS terminology is not always the same in all markets. Some regions may use slightly different terms. But the idea is the same. If you’re not sure. Explain the local version to your employees.
5) Can You Still Buy a Contingent Home? (Buyer Playbook)
because་. Here’s the deal. Just because you see a property listed as condition doesn’t mean it’s completely off the charts. It means that the seller has accepted. But the deal still depends on a few conditions. For example་. Inspection and Value Assessment or Finance. If any of these conditions are met, the property can go back on the market. Yes་. You can also make changes in the meantime.
The first step. Caution: Place notices on real estate websites to see if a property’s status changes from potential to back on the market. Time is of the essence here. Sometimes the transaction takes a few days. Sometimes it’s done in a matter of weeks.
Talk to your employees. How reliable is the current buyer supply, and how much is available? Employees often ask whether the financial situation is changing, and whether the financial situation is changing. Or whether there is a problem with the investigation.
Step 3: Make a Support Offer. Many sellers accept support contracts. This means that if the first transaction goes through, your transaction will automatically enter the top spot. Think of being “next in line” without having to wait.
Step 4: Strengthening your condition. Show the salesperson you’re ready. Provide a shorter contingency period. Bring proof of funding, pre-approval, or cover a potential appraisal gap. Even if you’re in the front row now. These things can make your offer more appealing.
And don’t forget about the going clause. If the seller gets a good deal, unless the first buyer has their contingency (like selling their old house), they can “kick out” the first buyer. Your strong supply of support can suddenly give you the lead.
The last word is: You can buy a house. You have to be patient. Smart employee. It also requires a backup plan.
6) Should You Accept a Contingent Offer? (Seller Playbook)
If you are buying your own home, a big question comes up again and again. Does the seller have to make a qualifying offer? The short answer is yes. Sometimes meaningful and sometimes an unnecessary headache.
A conditional offer means that the buyer wants your home. But the deal depends on several factors. For example་. They sold their houses early.
If the consumer asks for a higher price, Stable funding, or if you agree to a short term, A strong letter of pre-approval. Plus, a clear short-term offer will give you confidence. If an exit clause is attached. You have an extra safety net. This clause allows you to continue to show the property during the contract and allows you to keep showing the property. If another buyer makes a good offer. You can only “reverse” the first one if they remove the surprise. This is a real advantage for traders who don’t want to disrupt the market.
If the buyer’s pre-approval goes soft or the deal is contingent on selling another home in a down market, it may be too late. A long series of contingencies can pull the business back, and it can become a liability. You risk losing a good supply.
because་. Should you accept it? Consider your timeline and market. If houses in your area sell quickly, you may be able to afford them. You don’t have to take that risk. If you are happy with the offer and have a cancellation clause. That would be better than waiting.
👉 Tips: Always ask your agent if the property can continue to be shown after you accept an offer. This keeps your options open and keeps you busy. Sometimes that makes all the difference.
7) Timelines & Deadlines (What to Expect)
then་. How long should a family be considered prospective? The honest answer is yes. It depends. While each state and local MLS also has its own set of rules, most people have the same amount of time to encounter.
The inspection period is usually placed first. Buyers typically have 7 to 10 days to hire an inspector, and then it takes around 7 to 10 days. Review the report. After that, it takes one to two weeks after the lender requests it. Mortgage approval is usually the slowest part of the puzzle. Provide income to lenders; Credit check.
Put it all together, and you can see why properties can remain in a “state of emergency” for a month or more. Some were released within a few weeks; Some dragged for 60 days. If you’re buying and see “potential,” don’t assume the deal is done. That’s why the clock is ticking. It means that the time is written into the contract.
8) Risks, Fees & Earnest Money If Contingencies Fail
This is where things get a little confusing. When buyers make a commitment, they usually pay. It’s a small amount of money that shows they’re serious. What happens to the money if the deal falls through?
If the consumer returns for reasons covered by a contingency (i.e., an inspection reveals a serious underlying problem). They usually get the money paid back. If they miss an appointment or leave without a reason, then it’s a good idea. The money can go directly to the seller.
This is why written time is so important. The contract specifies when each contingency must be eliminated. “Removing the contingency” means that the buyer has agreed to go ahead anyway. Once these protections are exhausted, the threat is shifted. Missing a deadline could mean you miss out on what you owe.
For both buyers and sellers, the lesson is simple. Pay close attention to the calendar. Those dates determine who gets the money if the deal goes through.
9) Contingent vs “As-Is” & “Sale Pending No Contingencies”
When you see a house listed as potential. It means that the seller has accepted. But the deal is subject to certain conditions. For example་. Inspection and Review of Finance. If these conditions are not met, sales may fall further.
Now compare this to as is. If the property is sold as is, the seller says, “Take it or leave it.” They won’t fix anything, no matter what the investigation shows. Although buyers can still withdraw if the contract includes contingencies. They cannot demand repairs.
And “Ongoing sale with no contingencies. This is the stage where all conditions have been met or approved, the deal is basically closed, and the property is awaiting closing.
Why do traders prefer fewer contingencies? smooth་. Low risk. Every surprise is an opportunity for the consumer to back out. A clean contract, and in particular, a no-contingency contract, gives the seller peace of mind that the deal will actually close.
10) Mini-Glossary + FAQ
A quick vocabulary and complete the typing questions into Google when everyone sees the word contingent on the list.
What do “expulsion” and emergence mean?
This means that even though the seller has made a promise, never stop showing off the house. If a good offer comes along, the seller can “kick out” the first buyer. Unless the buyer cancels their surprise.
What is the difference between an offer of support and a withdrawal?
A backup offer is another buyer saying, “If this deal doesn’t work out, I’m next in line.” On the other hand, A cancellation clause allows the seller to accept the offer now and gives the first buyer the opportunity to comply or back out. Withdrawal is just waiting for your turn. To withdraw is to jump off the queue.
Can a surprise deal be done?
Yes་. Maybe there were issues during the inspection. Maybe the buyer’s loan wasn’t approved, or they couldn’t sell the old house in time. The deal is not closed until all conditions are met.
**Can a seller accept another guarantee?
Yes་. But it depends on the contract. If there is a cancellation clause, Yes་. They can issue a new request. Without one, the seller is constantly waiting. Unless the first deal doesn’t work out on its own.
👉 In short, “Potential” does not mean “off-market.” That means the property is in the middle of the transaction, and there is still room for change.