What Does It Mean When It Says Pending on a House for Sale?
Understand the "pending" status in real estate. Learn what it truly signifies, the steps involved, and why a deal might still not close.
When searching for a new home, you might encounter listings marked as “pending.” This status indicates a property has an accepted offer and is under contract, but the sale is not yet finalized. It represents a transitional phase where both the buyer and seller work towards completing the transaction.
The Meaning of Pending Status
The “pending” status signifies that a seller has accepted a buyer’s offer, and a purchase agreement has been signed. This moves the property beyond the “active” listing phase, where it was openly available for offers, and closer to “sold” status. While an offer has been accepted, the sale is not yet complete, and the property remains in a holding pattern.
During this period, the property is typically no longer marketed to other potential buyers, and showings are halted. However, “pending” does not mean the deal is done. The transaction is progressing through various steps, and the final transfer of ownership, known as closing, has not yet occurred.
Key Stages Within the Pending Period
The pending period addresses several conditions, often called contingencies, to ensure the sale proceeds smoothly. One common step is the home inspection, where the buyer hires a professional to assess the property’s condition. This inspection can reveal issues that might lead to renegotiations between the buyer and seller regarding repairs or credits.
Another significant stage is the appraisal, where a lender orders an independent valuation of the property to confirm its market value aligns with the agreed-upon purchase price. This step is vital, especially if the buyer is securing a mortgage, as it ensures the property provides sufficient collateral for the loan.
A financing contingency also allows the buyer a specified period, often 30 to 60 days, to secure final loan approval. If financing falls through due to changes in the buyer’s financial situation or other issues, the buyer may be able to withdraw from the contract without penalty.
Additionally, a title search is conducted to verify clear ownership. This process ensures there are no liens, claims, or legal issues against the property that could impede the transfer of title.
What “Pending” Means for Your Home Search
Encountering a “pending” status on a home you are interested in means the property is unavailable for new offers or showings. While it is possible to inquire about submitting a backup offer, this is less common for “pending” listings compared to “contingent” ones, as “pending” often implies most contingencies have already been satisfied. Sellers with a pending contract cannot continue to show the home or accept offers from other parties, unless a specific “kick-out” clause was included in their agreement.
It is more productive for buyers to focus their search on active listings that are openly available. While a pending sale can occasionally fall through, waiting for this to happen can mean missing out on other suitable properties. Keeping an eye on a pending listing is an option, but it should not be the primary strategy for a serious home search.
Why a Pending Sale Might Not Close
Despite a property being in “pending” status, several reasons can prevent the sale from reaching its final closing. A frequent cause is issues arising from the home inspection, where significant repair needs or unexpected problems lead to a breakdown in negotiations. Buyers may request repairs or concessions, and if an agreement cannot be reached, they might choose to terminate the contract.
Financing difficulties are another common obstacle. A buyer’s loan approval could be denied due to changes in their employment, credit score, or increased debt, causing the sale to collapse.
Furthermore, an appraisal gap can occur if the property appraises for less than the agreed-upon sale price, and the buyer and seller cannot agree on how to cover the difference. Lastly, unforeseen circumstances or buyer’s remorse can lead either party to withdraw from the transaction, though this is less frequent once a deal reaches the pending stage.