What Does Pending Mean on a Home Sale?

A home sale reaching “pending” status signifies a key step in the real estate transaction process. It indicates a seller has accepted an offer, and the property is no longer actively marketed. While this status suggests the sale is progressing, it is not final; various steps and conditions must be met before ownership transfers. Understanding what “pending” entails is important for those navigating the housing market.

Defining the Pending Home Sale Status

When a home is listed as “pending,” a mutually agreed-upon contract exists between the buyer and seller. This stage occurs after an offer has been accepted and a purchase agreement signed. The property is removed from active listings, signaling movement towards closing. However, “pending” implies the sale is contingent on successful completion of pre-closing requirements.

Common Pending Classifications

The “pending” status has different classifications, providing insight into the sale’s progression and likelihood of completion.

Pending with Contingencies

“Pending with Contingencies” means the sale is conditional upon specific factors, such as a satisfactory home inspection, buyer financing, or the property appraising at or above the agreed-upon price. If these conditions are not met, the contract may be terminated, and the home could return to the market.

Pending – Taking Backup Offers

Another classification is “Pending – Taking Backup Offers,” indicating that while an offer has been accepted, the seller is open to additional offers if the primary deal falls through. This might occur if contingencies are unresolved or the seller wants a safety net.

Pending – No Showings

Conversely, “Pending – No Showings” suggests all significant contingencies have been cleared, and the sale is close to finalization, with a high probability of closing.

Key Activities During the Pending Period

Several essential activities occur during the pending period, each serving as a condition that must be satisfied for the sale to proceed.

A primary step is the home inspection, where a professional evaluates the property’s condition, looking for structural issues, system malfunctions, and safety hazards. The buyer pays for this inspection, which can range from $300 to $500, and takes two to four hours to complete. Any significant findings may lead to renegotiations between the buyer and seller regarding repairs or credits.

Another activity is the home appraisal, ordered by the buyer’s lender to determine the property’s fair market value. This ensures the home’s value supports the loan amount. Appraisals cost between $300 and $600 and involve a licensed appraiser assessing the home’s features, condition, and comparable sales in the area. If the appraisal comes in lower than the agreed-upon purchase price, it can impact the buyer’s financing, potentially requiring renegotiation or additional cash from the buyer.

Securing financing, specifically loan underwriting, is a comprehensive process where the lender verifies the buyer’s financial stability and creditworthiness. This involves reviewing income, employment history, assets, and debt-to-income ratios. The underwriting process can take several days to weeks (average 30 to 45 days), and is a prerequisite for final loan approval. Finally, a title search examines public records to confirm the seller’s legal right to transfer ownership, identifying any liens, encumbrances, or disputes. This search, costing between $75 and $200, ensures a clear title for the buyer and takes 10 to 14 days.

What Pending Means for Prospective Buyers

For prospective buyers, a “pending” status means the property is unavailable for new offers, as an accepted contract is already in place. While the sale is not yet final, the chances of it returning to the market are relatively low, with estimates suggesting about 5% of pending sales fall through.

However, if a home is marked as “Pending – Taking Backup Offers,” it signals an opportunity for other interested parties. In such cases, a prospective buyer can submit a backup offer, which becomes the primary contract if the initial deal fails.

Making a backup offer requires the same serious commitment as a primary offer, including an earnest money deposit. If the initial sale closes, the backup offer’s earnest money is returned.

Reasons a pending sale might fall through include issues with financing, a failed home inspection revealing significant problems, a low appraisal, or even the buyer changing their mind. While not guaranteed, understanding these possibilities can inform a buyer’s strategy when a desired property enters a pending status.