How Long Is a House in Pending Status?
Learn about the pending status in real estate. Uncover the typical duration and key elements influencing a home's journey from accepted offer to closing.
A house in “pending” status signifies a property under contract where the seller has accepted an offer, yet the transaction is not fully complete. This period bridges the gap between an accepted offer and the final closing, ensuring all conditions are met before ownership officially transfers.
What “Pending” Means in Real Estate
When a property is marked as “pending,” a buyer has submitted an offer, and the seller has formally accepted it. This status implies the property is no longer actively available for other buyers, as a binding agreement is in place. Unlike an “active” listing, which is still on the market, or a “contingent” status, which often means an accepted offer with specific conditions allowing continued showings, “pending” indicates that most major conditions have been met or are in their final stages. The “pending” designation suggests a high likelihood of the sale completing. However, it does not guarantee a finalized transaction. A pending sale can still fall through if unforeseen issues arise or if agreed-upon conditions are not fulfilled. This status differs from “under contract,” which is a broader term encompassing both contingent and pending stages, but “pending” implies the transaction is further along.
Key Factors Affecting the Timeline
The length of time a house remains in pending status varies, commonly ranging from 30 to 60 days, influenced by several factors. Financing contingencies are a significant determinant, as the buyer’s loan approval process can take several weeks, depending on the loan type, such as conventional, FHA, or VA loans. Lenders review the buyer’s financial history and the property itself.
Inspection contingencies also play a substantial role. Buyers typically have 7 to 10 days to conduct various inspections, including general home, pest, or radon checks. Issues discovered can lead to renegotiations for repairs or credits, potentially extending the pending period. An appraisal contingency ensures the property’s value aligns with the purchase price; a low appraisal can necessitate further negotiation or a new financing structure, causing delays.
Other elements influencing the timeline include the readiness of both buyer and seller. A buyer needing to sell their current home or a seller requiring time to find a new residence can extend the pending phase. Issues with the property’s title, such as undisclosed liens or ownership disputes, also require resolution before closing, adding to the duration.
Major Steps During the Pending Period
During the pending period, several sequential steps must be completed to move the transaction toward closing. After an offer is accepted, the buyer typically submits an earnest money deposit, held in an escrow account.
The home inspection is then scheduled, allowing the buyer to assess the property’s condition and identify necessary repairs. If the buyer obtains a mortgage, the lender initiates the appraisal process to determine the property’s market value, essential for loan approval.
The loan underwriting phase then begins, where the lender verifies the buyer’s financial information, including income, assets, and credit history, to finalize mortgage approval. A title search is also conducted to ensure clear ownership and identify any liens or encumbrances that need resolution before transfer. As these conditions are met, legal documents are prepared and reviewed by all parties, setting the stage for the final transfer of ownership.
Transitioning from Pending to Close
The transition from pending to closed status marks the culmination of the real estate transaction. Once all contingencies are satisfied and the lender has given final approval, the sale is ready to proceed to closing. This final stage involves actions that finalize the transfer of property. Before the official closing, buyers usually conduct a final walk-through to ensure the property remains in the agreed-upon condition and that any negotiated repairs have been completed. At the closing appointment, typically held at a title company or attorney’s office, all parties sign the necessary legal documents, including the deed, mortgage, and various disclosures. Funds are then transferred from the buyer’s lender and the buyer’s down payment to the seller, and keys are exchanged, officially transferring ownership.