The Answer
Great question and one that confuses a lot of buyers (and even some agents).
The short answer: In our local Pembroke Pines MLS, "Under Contract" and "Pending" mean the exact same thing. They're used interchangeably. So don't overthink the terminology.
But here's what you actually need to know about each status and why "Accepting Backup Offers" might be your biggest opportunity.
UNDER CONTRACT / PENDING: What It Really Means
When you see either of these labels in the MLS, here's what's happening:
✔ The seller has accepted an offer
✔ The property is no longer actively marketed
✔ The deal is in process but NOT closed yet
At this stage, the buyer is working through:
Home inspection
Financing approval
Appraisal
Title search
Attorney review (in some states)
Final walkthrough
Bottom line: The home is NOT sold until it closes and records at the county. Until then, the deal can still fall apart.
Why Deals Fall Apart (More Often Than You Think)
Just because a home goes under contract doesn't mean it's a done deal. Here are the most common reasons contracts get canceled:
1. Inspection Issues
The buyer's inspector finds major problems (roof damage, foundation issues, mold, electrical problems, plumbing leaks). The seller refuses to make repairs or offer credits. Buyer walks.
How often this happens: 10-15% of contracts in South Florida fail due to inspection disputes.
2. Financing Falls Through
The buyer's pre-approval was based on incomplete information. Their lender denies the loan after reviewing full documentation. Or the buyer loses their job, takes on new debt, or has a credit score drop.
How often this happens: 5-10% of contracts fail due to financing issues.
3. Appraisal Comes in Low
The buyer is financing $450K, but the appraisal comes back at $430K. The lender won't loan more than the appraised value. The seller won't lower the price. Deal dies.
How often this happens: Especially common when homes are overpriced. In hot markets, 15-20% of deals face appraisal gaps.
4. Title Problems
The title search reveals liens, unpaid HOA fees, boundary disputes, or ownership issues that can't be resolved quickly. Deal gets delayed or canceled.
How often this happens: 3-5% of deals have title issues, though most can be resolved with time.
5. Buyer Gets Cold Feet
The buyer realizes they overextended financially, found a better home, or just changes their mind. If they're still within their contingency period (inspection, financing, appraisal), they can cancel without penalty.
How often this happens: More than you'd think. Buyer's remorse is real.
So What Does "Accepting Backup Offers" Mean?
This is where it gets interesting.
"Accepting Backup Offers" means the seller already has a contract in place but they're open to receiving additional offers that can step into first position if the current deal falls apart.
How Backup Offers Work:
Seller has a primary contract (Buyer A is under contract)
You submit a backup offer (Buyer B writes an offer)
If Buyer A's deal falls through (inspection, financing, appraisal, cold feet), your backup offer automatically moves into first position
You close the deal without the property ever going back on the market
Why sellers accept backup offers:
Keeps the primary buyer motivated – If Buyer A knows there's a backup, they're less likely to nickel and dime or drag their feet
Reduces downtime – If the deal falls apart, the seller doesn't have to relist and wait for new offers
Leverage in negotiations – Seller can use backup offers to push Buyer A to waive contingencies or close faster
Why buyers should consider backup offers:
It's not a long shot – 10-20% of contracts fail. Your backup could become the primary deal
You're first in line – If the deal falls apart, you get the home without competing against other buyers
You can negotiate – Backup offers can have different terms than the primary contract (different price, different contingencies, different closing date)
What Really Matters (More Than the Label)
Here's the truth: The MLS status label, whether it says "Under Contract" or "Pending", doesn't tell you much.
What ACTUALLY matters is understanding where the deal stands in the process.
The real questions you should be asking:
1. Are inspections done?
If inspections haven't happened yet, there's a higher chance the deal could fall apart. Major issues = buyer walks or demands concessions.
2. Is financing approved?
Has the buyer received final loan approval (clear to close)? Or are they still waiting on underwriting?
Pre-approval ≠ final approval. Until the buyer has clear to close status, financing can still fail.
3. Did the appraisal come back?
If the appraisal came in at or above the purchase price, that's a good sign. If it's pending or came in low, the deal is at risk.
4. Are there open contingencies?
Contingencies are conditions that must be met for the deal to proceed:
Inspection contingency (buyer can walk based on inspection results)
Financing contingency (buyer can walk if they don't get approved)
Appraisal contingency (buyer can walk if appraisal comes in low)
Sale of buyer's home contingency (deal depends on buyer selling their current home first)
The more contingencies still open, the higher the risk the deal falls apart.
5. Is the seller accepting backup offers?
If yes, that signals the seller is either:
Not 100% confident in the primary buyer, OR
Wants leverage to keep the primary buyer motivated
Either way, it's an opportunity for you as a backup buyer.
How to Find Out the Real Status
The MLS won't tell you all of this. But your agent can find out by:
Calling the listing agent directly – Asking where they are in the process (inspections done? financing approved? appraisal in?)
Checking public records – Seeing if there's been recent title activity
Watching for status changes – If a home goes from "Under Contract" to "Active" again, the deal fell through and it's back on the market
Don't assume. If you're interested in a home that's under contract, have your agent call and ask:
"Are they accepting backup offers?"
"Where are they in the contract process?"
"How strong is the buyer's financing?"
Real-World Example: Why Backup Offers Work
A buyer fell in love with a home in Chapel Trail listed at $725K. By the time they scheduled a showing, it was already under contract.
Their agent called the listing agent and asked: "Are you accepting backup offers?"
The listing agent said yes. The primary buyer was under contract but hadn't completed their home inspection yet.
The backup buyer submitted an offer at $715K, conventional financing with 20% down, standard inspection contingency, 30-day close.
What happened:
The primary buyer's inspector found significant issues: the roof needed replacement ($18K), the AC was on its last legs ($8K), and there was evidence of previous water intrusion that required remediation ($12K). Total: $38K in repairs.
The primary buyer asked the seller to either make all repairs or credit $38K at closing. The seller countered with a $10K credit. The buyer wanted $30K minimum. Neither side would budge.
After a week of back and forth negotiations, the primary buyer walked away using their inspection contingency.
The backup buyer's offer automatically moved into first position.
The backup buyer completed their own inspection, negotiated a $15K credit for the roof and AC (the seller was more motivated after losing the first deal), and closed 28 days later.
The backup buyer got the home without ever competing in a bidding war and got $15K in credits and saved themselves weeks of searching.
Should You Submit a Backup Offer?
Here's when it makes sense:
You love the home and don't want to keep looking
✅ The primary buyer has weak financing (FHA, low down payment, or pre-approval only)
✅ Inspections haven't happened yet (higher chance of issues)
✅ The seller is motivated (wants leverage or is worried about the primary deal)
✅ You're flexible on terms (you can close faster, waive contingencies, or adjust price)
When NOT to submit a backup:
❌ The primary buyer has cash or strong conventional financing
❌ Inspections and appraisal are done with no issues
❌ You don't want to wait (backup offers can take 2-4 weeks to know if you're getting the home)
❌ There are better homes available that you can buy immediately
What I’d Tell a Friend
If you see a home you love and it's under contract or pending, don't automatically move on.
Ask your agent to find out:
Are they accepting backup offers?
Where are they in the process?
How strong is the primary buyer?
If the answer is "yes, they're accepting backups" and "the buyer is still in inspections or waiting on financing," you've got a real shot.
Write a strong backup offer, better terms, faster close, fewer contingencies, and position yourself as the safer bet.
10-20% of contracts fall apart. If you're the backup, you're first in line when that happens.
And if the primary deal DOES close? You only lost a few days. But if it falls apart and your backup becomes primary? You just got the home without competing against anyone else.
That's not a long shot. That's strategy.
The Bottom Line
In Pembroke Pines:
Under Contract and Pending mean the same thing (interchangeable in our MLS)
Accepting Backup Offers means opportunity (you could become the buyer)
A deal isn't final until it closes (contracts fall apart all the time)
Don't let "Under Contract" scare you away from a home you love. Ask where the deal stands. Submit a backup if it makes sense. And know that until the property closes and records, it's still in play.
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