What Does Pending Mean in a Real Estate Sale?

A real estate sale entering “pending” status signifies a significant step forward after an offer has been accepted. This status indicates the property is under contract, but the transaction is not yet complete. It represents a period where both buyer and seller are working towards finalizing the sale. During this time, the property is typically no longer actively marketed to other potential buyers.

Understanding the Pending Status

In real estate, “pending” means a seller has accepted an offer, and the transaction is progressing toward closing. This differs from an “active” listing, which is still available for offers, or “under contract,” which can sometimes imply contingencies are still being actively worked on. While definitions can vary by local Multiple Listing Service (MLS) rules, “pending” generally suggests that most contingencies have been met or waived, and the transaction is nearing its conclusion. When a home is listed as pending, it is usually considered off the market, indicating a high likelihood of the sale completing. However, “pending” does not mean “sold,” as there remains a slight possibility the deal could still fall through.

The Contingency Period

The period between an accepted offer and a “pending” status involves a critical stage where various conditions, known as contingencies, must be satisfied. These clauses are built into the purchase agreement to protect both the buyer and seller, providing an “out” if specific requirements are not met. If these contingencies are not fulfilled or waived, the contract may be terminated without penalty, often allowing the buyer to recover their earnest money deposit.

A common contingency is the home inspection, which allows the buyer a specified timeframe to hire a professional inspector to evaluate the property’s condition. Should the inspection reveal significant issues, the buyer can negotiate for repairs, a price reduction, or choose to cancel the contract. An appraisal contingency ensures the property’s value, as determined by a professional appraiser, meets or exceeds the agreed-upon purchase price. If the appraisal comes in lower, the buyer can renegotiate the price, pay the difference out-of-pocket, or withdraw from the deal.

The financing contingency grants the buyer a period to secure mortgage loan approval. If the buyer is unable to obtain the necessary financing, they can terminate the purchase agreement and receive their earnest money back. A title contingency provides a timeframe for a title search to ensure the property has a clear title, free from liens, disputes, or other claims. Any issues discovered must be resolved by the seller or the buyer can typically back out. Other common contingencies can include the sale of the buyer’s current home.

Possible Outcomes of a Pending Sale

A pending real estate sale typically leads to one of two outcomes: a successful closing or the contract falling through. A successful closing marks the official transfer of ownership from the seller to the buyer. This final stage involves signing documents and disbursing funds. Before closing, a final walk-through is usually conducted to ensure the property is in the agreed-upon condition and any negotiated repairs have been completed.

A sale can still fall through for various reasons. Common causes include unresolved issues from home inspections, where the buyer and seller cannot agree on repairs or concessions. Financing problems are another frequent reason, such as a buyer’s loan approval being denied due to changes in their financial situation or a lender’s guidelines.

A low appraisal, where the home’s appraised value is less than the agreed-upon purchase price, can also derail a sale if the parties cannot renegotiate the price or the buyer cannot cover the difference. Title issues, such as undisclosed liens or ownership disputes, can also prevent a closing. If a pending sale collapses, the property often returns to an “active” status on the market.