What Does 'Active/Contingent' Mean in Phoenix Offers, and Should I Bid on It?

In Phoenix real estate, you'll see listings marked as "Active," "Active/Contingent," or "Pending." Understanding what each status means—and whether you should bid on an Active/Contingent listing—can help you make smarter offers in a competitive market.

Active/Contingent means the seller has accepted an offer, but that offer depends on the buyer meeting certain conditions. The most common condition is the sale of the buyer's current home. Unlike a fully Pending listing, an Active/Contingent property can still accept backup offers from other buyers. If the first buyer's contingency fails, the seller can move to one of those backup offers instead of starting over.

How Active/Contingent Differs from Other Listing Statuses

Real estate statuses tell you where a deal stands. Here's how the main ones work.

Active (or Active/No Contingencies)

The home is on the market and the seller has not accepted any offers yet. You can submit an offer and compete directly with other buyers. No one else has locked in a contract. This is the most straightforward buying situation.

Active/Contingent

The seller has accepted an offer, but that buyer's deal is tied to a condition—usually selling their own home first. The listing stays on the market. The seller is free to accept backup offers (called "secondary offers" or "backup positions") from other buyers. If the first buyer's home doesn't sell or their contingency falls through, the seller can accept the backup offer and close with you.

Pending

The seller has accepted an offer and that offer has no active contingencies holding it up. The deal is moving toward closing. In Greater Phoenix, there are currently 3,737 pending listings, according to the Cromford Report. A Pending listing rarely accepts backup offers, though some sellers may agree to one in writing.

Under Contract-Backup (UCB)

You may also hear "Under Contract-Backup." This is a formal backup position—your offer is ranked and ready to move forward if the first deal fails. Not all Active/Contingent listings accept backups, but many do.

Why Active/Contingent Exists: The Contingency

Contingencies are conditions built into purchase contracts. Common ones include a home inspection, appraisal, or financing approval. The most frequent contingency on Active/Contingent listings is a sale contingency—the buyer says, "I will buy your home, but only if I sell my current house first."

From the seller's perspective, a sale contingency is risky. If the buyer's home doesn't sell, the deal falls apart, and the seller must restart the marketing process. That's why sellers often ask for backup offers when they accept a contingent contract. It protects them and keeps momentum going.

Should You Bid on an Active/Contingent Listing?

Bidding on an Active/Contingent home can be smart or risky depending on your situation and the market.

When It Makes Sense to Bid

You have a strong offer and patience. If the first buyer's contingency fails—say their home doesn't sell as expected—your backup offer moves to the front of the line. You've essentially reserved the property without waiting for it to go back on the market.

The market favors buyers. With 5.2 months of supply in Greater Phoenix (per the Cromford Report), you have more negotiating power. Homes are staying on the market longer, and competition is lighter than it was a few years ago. An Active/Contingent home may still be worth your time.

You are a strong buyer with no contingencies. If your offer is clean—no sale contingency, no inspection contingency, proof of funds—the seller may pick your backup offer as the favorite and move you up if the first deal fails.

When It's Risky

You are on a tight timeline. Backup offers can wait weeks or months. If you need to close soon, a backup position is unlikely to help you.

You have your own sale contingency. If both you and the first buyer need to sell your homes, the seller has two contingencies to worry about. Your backup offer becomes less attractive. You will compete poorly against clean, cash, or no-contingency offers.

The property is hot. If multiple backup offers are lined up and the seller is confident, they may never need your offer. You spend energy and money on an inspection or appraisal for a home you may never buy.

How to Submit a Backup Offer in Phoenix

If you want to bid on an Active/Contingent home, talk to your real estate agent. They will:

• Ask the listing agent if the seller accepts backup offers.
• Find out the terms—how many backups are allowed, what position you would occupy.
• Draft your offer on the standard AAR Residential Purchase Contract, often with a note that it is a secondary offer.
• Submit it to the seller for consideration.

Your agent should also learn the first buyer's contingency details. If it's a sale contingency, ask when their home is expected to sell. If the timeline is weak, your odds improve.

A Worked Example

Say you are shopping in Chandler and find a home listed at $550,000. It's marked Active/Contingent because the seller accepted an offer from a buyer who must sell their current house. That buyer has 60 days to close, per their contract.

You submit a backup offer at $555,000 with no sale contingency. The seller ranks you as Backup #1. Over the next month, the buyer's home sits on the market and doesn't attract an offer. By week eight, they realize they won't close on time. The seller then moves your offer to primary status, and you move into contract. Your backup offer paid off because you were clean and the first deal stalled.

This is a simplified scenario and not a market prediction. Your results depend on the specific property, the first buyer's circumstances, and whether you remain the seller's favorite backup.

People Also Ask

Can I negotiate the price on an Active/Contingent backup offer?

Yes. Your backup offer is a full contract, just ranked second. You can offer any price and terms you choose. However, if your offer is much lower than the first buyer's, the seller is less likely to move you to primary if that deal fails. You are making a calculated bet that the first buyer will walk away and the seller will accept your terms.

How long does it take for a backup offer to become primary?

It depends on why the first deal failed. If the buyer's home doesn't sell within their contingency period (often 60 to 90 days), the seller can notify them of default. But many buyers and sellers renegotiate or extend, which delays things. Your backup offer could move forward in weeks or sit dormant for months. There is no fixed timeline.

Is an Active/Contingent listing a bad sign?

No. It simply means the seller found a buyer willing to close, even with a contingency, rather than wait for a stronger offer. In a balanced market like Phoenix's current one, Active/Contingent deals are common when inventory is healthy. They become rarer during hot-seller markets when multiple clean offers arrive at once.

Bottom Line

Active/Contingent listings are a real option in Phoenix. They let you secure a backup position on a home you like without waiting for it to return to the open market. The risk is that you may be tied up for weeks and never get the chance to buy.

If you are considering a backup offer, talk to your agent about your timeline, the first buyer's contingency, and how many backups the seller will accept. A smart backup offer can be your path to the right home—but only if you understand the stakes and your needs match the risk.

Ready to explore Active/Contingent opportunities or find out if a specific listing is right for you? Reach out to a Phoenix-area real estate agent who knows your market and your timeline.

Search homes for sale in Phoenix →