What Does Pending Mean in Real Estate?
What does pending mean in real estate? Learn about pending status, whether you can still make an offer, and tips for buyers and sellers of pending homes.
You’re browsing home listings, and your eyes land on a beautiful house in your price range. It’s just what you’ve been looking for. Then you notice it’s labeled “Pending.” But what does pending mean in real estate? Can you still make an offer?
In this post, we’ll explain this status tag and what it might mean to you as a potential buyer. We’ll also share tips on how you can make a strong, non-contingent offer so you’re not stuck in the pending zone.
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What does pending mean in real estate?
In real estate, “pending” means a seller has accepted an offer, and the property is under contract, but the sale hasn’t yet closed. This status suggests the major terms have been agreed upon, and both parties are working toward a successful transaction. However, pending is not the same as “sold” — the deal isn’t final, so there’s still a chance, however slim, that it could fall through.
Why might a home be listed as pending?
A home is marked as pending once an offer is accepted and both parties have agreed to the sale’s terms. This can mean that the buyer’s financing is approved, the inspection contingency is met, or any appraisal concerns are resolved. While the exact reasons can vary, a pending status generally indicates that the transaction is moving forward. (More on contingencies in a minute.)
How long can a home be in pending status?
The length of a pending status often varies but typically lasts around 30-60 days, according to the National Association of Realtors. Factors like buyer financing, required repairs, or the need to finalize paperwork can impact this timeline. If everything goes smoothly, the sale could close faster. However, issues that arise might extend the pending period.
Can a buyer make an offer on a ‘pending’ house?
Most pending listings are off-limits for new offers, as the seller has already committed to a buyer. However, there can be exceptions. If you’re particularly interested in a pending property, you can ask your agent to monitor its status or even submit a backup offer. This way, you’ll be next in line if the current deal falls through.
If the current buyer’s offer includes conditions, referred to as contingencies, that they are unable to meet, this may open up a window of opportunity.
Why might a pending house come back on the market?
There are several reasons why a pending sale may fall through, leading the home to reappear on the market. Here’s a quick look at the most common causes:
- Buyer financing falls through: The buyer may struggle to secure final loan approval, especially if their financial situation changes.
- Low home appraisal: If the home appraises for less than the agreed price, the buyer or lender might refuse to proceed without a price adjustment.
- Home inspection issues: Significant problems discovered during inspection — like structural issues or mold — can lead the buyer to back out or request costly repairs.
- Property title issues: Problems with the property’s title, such as unresolved liens or ownership disputes, can halt the sale.
- Contingencies not met: If any agreed-upon contingencies aren’t satisfied, like selling the buyer’s current home, the contract can fall through.
- Buyer backs out (cold feet): Buyers sometimes get cold feet, especially in competitive markets, and decide to cancel the purchase.
- Bank denies short sale offer: In a short sale, the bank must approve the sale terms. If they reject the buyer’s offer, the deal won’t proceed.
- Seller backs out: Although less common, a seller might have a change of heart or encounter personal issues that prevent them from moving forward.
What contingencies can impact a pending sale?
Contingencies are conditions that must be met for a sale to proceed. Here are some common ones that can influence whether a pending sale is successful:
- Financing contingency: This protects the buyer if they’re unable to secure a mortgage. If the loan falls through, they can exit the deal without losing their deposit.
- Appraisal contingency: An appraisal contingency lets the buyer back out if the home appraises below the agreed-upon price. This prevents overpaying or needing to make up the difference.
- Inspection contingency: Buyers use this to negotiate repairs or cancel the deal based on inspection results, giving them control if the home has significant issues.
- Home sale contingency: This allows buyers to make the purchase dependent on the sale of their own home. If they can’t sell it, they’re not obligated to proceed.
