“Found Your Dream Home—But It’s Marked ‘Pending’? Don’t Walk Away Yet. Here’s What That Really Means (And How You Might Still Snag It).”
Introduction
Imagine this: You’ve found the home of your dreams. You’ve fallen in love with the spacious living room, the gourmet kitchen, and the lush backyard. You’re about to make an offer when you notice that the listing says “pending.” What does that mean, and should you still keep your hopes up?
In real estate, the term “pending” is commonly used, but its meaning can vary depending on the context. At its core, “pending” simply means that the seller has accepted an offer, and the property is under contract. However, the deal isn’t finalized yet, leaving room for unforeseen complications.
Understanding this status is essential for both buyers and sellers. For buyers, it can save you time and emotional energy by preventing you from chasing a house that’s no longer available. For sellers, recognizing the intricacies of pending sales ensures smoother transactions and better preparedness. Investors, too, can benefit from this knowledge when evaluating opportunities.
What Does Pending Mean in Real Estate?
In simple terms, “pending” in real estate indicates that a seller has accepted an offer on a property, and the sale is in progress but not yet complete. While the buyer and seller are negotiating and meeting various conditions, the property is no longer actively being marketed or shown to other potential buyers.
Key Characteristics
- The Property is Off the Market: Once a listing is marked as “pending,” it is no longer available for new offers or showings.
- Contingencies Are Being Met: The buyer and seller are working through contingencies, such as home inspections, appraisals, and financing approval.
- The Deal Isn’t Finalized Yet: Though the transaction is moving forward, the sale is not guaranteed. There is still a chance the deal could fall through before closing.
Pending in Real Estate Transactions
In the realm of real estate transactions, “pending” signals that the sale is in process but not yet finalized. It means that while both parties have agreed to terms, specific conditions need to be met before the deal can be sealed.
Pending for a House
For a house, when the listing goes from “active” to “pending,” it means that the seller has accepted an offer, and the property is no longer available for viewings or new bids. However, the transaction is still subject to completion.
The Difference Between Pending and Other Real Estate Terms
Here, we discuss all types of terminologies comparison
Pending vs. Active
An “active” listing is still open for new offers and showings, meaning the property is up for grabs. A “pending” listing, on the other hand, is under contract, signaling that an offer has been accepted and the property is no longer on the market.
Pending vs. Contingent
A “contingent” listing means the seller has accepted an offer, but the sale depends on certain conditions, such as the completion of a satisfactory home inspection or the buyer securing financing. A “pending” listing suggests the contingencies are either resolved or nearly resolved, with fewer hurdles remaining before closing.
Pending vs. Sold
“Sold” means the transaction is complete, the property has been transferred to the buyer, and the sale is official. “Pending” indicates that while the deal is progressing, it is not yet finished.
Pending vs. Under Contract
“Pending” and “under contract” are often used interchangeably, but “pending” generally refers to a property that is closer to closing, with fewer contingencies to be met. “Under contract” can sometimes still involve more contingencies and negotiations.
What Does Under Contract Mean in Real Estate?
In real estate, “under contract” means a buyer and seller have signed a purchase agreement, but the sale hasn’t closed; contingencies must still be met before the sale is final.
What Does Active Under Contract Mean
“Active under contract” refers to a seller who has accepted a buyer’s offer in real estate, but the sale is not yet final and the seller is still accepting backup offers because the deal must meet certain conditions before it can close.
How Long Does a Pending Sale Take?
On average, a pending sale typically takes between 30 to 60 days to close. The length of time varies depending on factors like financing approval, inspection outcomes, and other logistical elements. Buyers should be prepared for this timeline, with the understanding that delays can occur.
Factors That Affect the Timeline
Several factors influence how long a pending sale takes:
- Financing Approval: The approval process for a mortgage can take several weeks, particularly if the buyer’s finances need further verification.
- Home Inspection Results: If significant issues are discovered during the home inspection, negotiations may delay the process.
- Appraisal Process: If the home appraises for less than the agreed-upon price, it could affect the sale’s progress.
- Title Search and Insurance: Ensuring the property’s title is clear and issuing insurance can take time.
- Negotiations on Repairs or Credits: Delays often occur if either party requires further negotiations on repairs or financial credits.
How Long is a House Usually Pending?
Typically, a house is pending for around 30 to 60 days, but the timeline can fluctuate depending on the specifics of the transaction. Factors such as the buyer’s financial situation or issues uncovered during inspections can cause extensions.
How Long Does it Take for a House to Go from Pending to Sold?
It usually takes around 30 to 60 days for a house to go from “pending” to “sold,” depending on various contingencies being met and the buyer’s financing timeline.
How Long Does a House Stay Pending on Zillow?
On platforms like Zillow, a home will remain marked as pending until the transaction is finalized. This status is updated once the sale officially closes, typically within 30 to 60 days.
Can You Make an Offer on a Pending Home?
Even though a home may be pending, there’s still an opportunity to submit a backup offer. A backup offer is an agreement that remains valid in case the current deal falls through. If the original buyer’s financing collapses or the inspection uncovers issues that derail the sale, the seller may turn to the backup offer.
Risks and Benefits
- Risk: The primary risk of submitting a backup offer is the possibility of waiting for a deal that might not collapse, leaving you frustrated and with little to show for your effort.
- Benefit: The benefit lies in securing a desirable home if the initial deal falls apart. If you are the next in line, the seller may consider your offer instead.
Is it Worth Looking at a House That is Pending?
It can be worthwhile to view a pending house if you are interested and prepared to submit a backup offer. However, you should be aware that there’s no guarantee that the sale will fall through, and time invested may not lead to a favorable outcome.
Why Do Pending Sales Fall Through?
Common Reasons
Pending sales can fall apart for several reasons, including:
- Financing Issues: The buyer’s loan may be denied, preventing the deal from going through.
- Home Inspection Problems: The inspection might uncover serious issues that the buyer is unwilling to address or negotiate.
- Low Appraisal: If the home appraises for less than the offer price, the buyer may struggle to secure sufficient financing.
- Buyer or Seller Change of Mind: Sometimes, the buyer or seller might have second thoughts, leading to the collapse of the deal.
Statistics
According to the National Association of Realtors, approximately 5% of pending sales fall through due to these and other complications. This statistic highlights the inherent risk involved in the real estate transaction process.
Does Pending Always Mean Sold?
No, “pending” does not always equate to a completed sale. There are numerous factors that can lead to a deal falling through, leaving the property back on the market.
What Does Pending Mean in Real Estate Mortgage?
In the context of a mortgage, “pending” refers to the stage in which the lender is processing the loan but has not yet finalized the approval. It indicates that the financing process is still ongoing and that the transaction cannot close until the mortgage is officially approved.
Key Points
- Verification of Financing: The buyer’s financial situation is still being reviewed.
- Additional Documentation: The lender may require extra documentation before final approval.
- Risk of Denial: The loan is not yet approved, and the deal could collapse if the financing is denied.
What Does Contract Pending Mean in Real Estate?
“Contract pending” means that the property is under contract, with both the buyer and seller agreeing to terms. However, as with other pending sales, the deal is still subject to contingencies and isn’t officially complete.
Key Points
- The buyer and seller have agreed on the terms of the sale.
- Contingencies such as inspections and financing are being addressed.
- While progress is being made, the sale is not yet finalized.
Tips for Buyers and Sellers During the Pending Phase
For Buyers
- Stay in Contact: Maintain close communication with your real estate agent and lender to ensure that all contingencies are met.
- Be Prepared for Delays: Understand that delays can happen, and be flexible when adjustments are needed.
- Keep Your Finances Stable: Avoid making significant changes to your finances that could jeopardize the mortgage approval process.
For Sellers
- Avoid Major Changes: Refrain from making significant alterations to the property during this phase.
- Be Flexible: Be ready to accommodate the buyer’s requests for repairs or adjustments.
- Be Patient: Understand that the closing process can take time, and remaining patient will facilitate a smoother transaction.
What Does Contract Pending Mean in Real Estate?
This section is similar to the explanation provided above under “What Does Contract Pending Mean in Real Estate?” where it’s clarified that the property is under contract, with both parties working through contingencies to finalize the deal.
Conclusion
To sum it up, when a property is marked as “pending,” it signifies that the seller has accepted an offer and the sale is in progress. Understanding this phase in real estate is vital for navigating the buying or selling process effectively, whether you are a first-time buyer or an experienced investor.
If you’re embarking on a real estate transaction, ensure that you’re equipped with the knowledge and expertise of a trusted agent. Their guidance can help you navigate through the complexities of the pending phase and beyond, ensuring that your property journey remains as smooth as possible.
Frequently Asked Questions
Can I Still Tour a Pending Home?
Typically, no. Once a home is marked as pending, it’s no longer available for showings unless the deal falls through.
What Happens if a Pending Sale Falls Through?
If a pending sale collapses, the property is relisted, and the seller can begin entertaining new offers.
Is a Pending Home a Good Deal?
While a pending home can still offer potential value, there’s no guarantee that the sale will go through. Proceed with caution and be prepared for any eventualities.
