What Does Pending Mean in Real Estate?
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Richard Haddad Executive EditorClose
Richard Haddad Executive EditorRichard Haddad is the executive editor of HomeLight.com. He works with an experienced content team that oversees the company’s blog featuring in-depth articles about the home buying and selling process, homeownership news, home care and design tips, and related real estate trends. Previously, he served as an editor and content producer for World Company, Gannett, and Western News & Info, where he also served as news director and director of internet operations.
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.
Pending vs. contingent: While “pending” and “contingent” might seem similar, they refer to different stages in the sale process. Contingent homes have unresolved conditions that could still impact the sale, whereas pending homes have cleared these conditions and are nearing completion.
How often do pending offers fall through?
Pending offers don’t typically fall through often, but it does happen. Data suggests that around 5% of pending sales do not close. While the percentage is relatively low, it’s a reminder that a pending status doesn’t guarantee the sale will close.
According to a HomeLight survey of more than 1,000 top real estate agents across the country, the most common reasons sellers are leaving the negotiation table include:
- Low offers: 60% of agents say homebuyers are offering too far below the seller’s desired listing price.
- Too many contingencies: 21% of agents say buyers are including too many contingencies in their offers.
- Nervous or hesitant buyers: 12% of agents say buyers are feeling too nervous and walk away, or waiting too long on the fence.
What are some other home listing status tags?
Real estate listings often use various status tags to reflect a property’s sale stage. Here are some you might see:
- Active: The home is available on the market with no accepted offers. Buyers are welcome to view and make offers.
- Active with backup: The seller has accepted an offer, but they’re open to receiving backup offers in case the current deal falls through.
- Active no bump: The home is available and can receive offers, but there’s no provision for bumping the current offer with a better one.
- Under contract: Similar to “contingent,” the “under contract” tag means an offer is accepted, but certain terms are still pending. The buyer is in the process of satisfying conditions like financing or inspections.
- Coming soon: This means the home is not yet available for showings or offers but will be listed soon. This tag builds interest before officially hitting the market.
- Temporarily off market: The home is temporarily unavailable due to reasons like repairs, but the seller intends to put it back on the market soon.
- Withdrawn: The listing has been removed from the market, either temporarily or permanently, and is no longer active.
- Expired: The home didn’t sell within the listing period, so it’s off the market unless the seller decides to relist with a new contract.
- Sold: This obvious status indicates the home sale has been fully closed.
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Tips for buyers and sellers on pending homes
For buyers:
- Consider a backup offer: If you’re interested in a pending home, ask your agent about submitting a backup offer. This puts you next in line if the sale falls through.
- Monitor the listing: Some pending homes may reappear as active if the deal falls apart. Keep an eye on listings you like, as they might come back on the market.
- Have patience: Pending doesn’t always mean the home is off-limits, but it often signals that it’s close to being sold. Maintain interest, but avoid relying solely on one property.
For sellers:
- Be proactive with contingencies: Address any potential issues upfront, like repairs or title checks, to avoid last-minute problems during the pending phase.
- Encourage a strong backup offer: Accepting backup offers can create a fallback plan if the original offer fails. This keeps your sale timeline on track.
- Stay communicative: Work closely with your agent to ensure all parties are informed, and any issues are resolved quickly. Communication can help keep a deal intact.
How can I avoid making a contingent offer?
If you’re trying to buy a home without adding a sale contingency, here are some strategies:
- Get pre-approved: A mortgage pre-approval strengthens your position, showing sellers that financing is in place. This can make your offer more appealing.
- Increase your down payment: Offering a larger down payment can improve your chances, as it demonstrates financial strength and reduces the lender’s risk.
- Use bridge financing: Short-term financing, like a bridge loan, allows you to buy your next home while waiting to sell your current property. This can help you avoid a sale contingency.
- Consider HomeLight’s Buy Before You Sell program: HomeLight’s program helps you buy a new home before selling your current one, removing the need for a sale contingency. This lets you make a competitive, non-contingent offer.
How does HomeLight Buy Before You Sell work?
As a real estate solutions company, HomeLight makes it easier than ever to use the equity from your current home to make a more competitive offer on your next house and streamline the entire buy-sell process.
Contact HomeLight to get started, or ask your agent how HomeLight Buy Before You Sell can provide you with a smoother, contingency-free purchase.
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Buying or selling a home with pending status considerations can be complex, but the right agent makes all the difference. A top real estate agent provides expert guidance on how to handle pending properties, contingencies, and offer strategies. HomeLight’s agent-matching tool connects you with top local agents who can help you navigate each step with confidence.
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