What Does Pending With Showings Mean?

Real estate transactions involve various stages, each identified by specific listing statuses that indicate a property’s availability and progress toward a sale. These statuses provide clarity to both buyers and sellers regarding the current standing of a home on the market. Initially, a property is listed as “active,” signaling it is openly available for offers and showings. As the selling process advances, the status changes to reflect the evolving contractual agreements between parties.

Understanding Pending Status

When a property’s status changes to “pending,” it signifies that a seller has accepted an offer from a buyer, and a formal contract is executed. However, “pending” does not mean the sale is finalized; it indicates the transaction is progressing toward completion. The property is under contract, but ownership has not yet transferred. During this stage, various conditions, known as contingencies, are addressed before the sale can close.

Common reasons for this status include awaiting a home inspection, securing financing, or a satisfactory appraisal. For example, a financing contingency allows the buyer to withdraw if they cannot obtain a loan, and an appraisal contingency protects the buyer if the home’s value is lower than the agreed-upon price. While pending status suggests a high likelihood of sale, these contingencies mean the deal could still fall through if conditions are not met.

The “With Showings” Distinction

The “pending with showings” status adds nuance to the general “pending” designation. When a property is marked “pending with showings,” an offer has been accepted, and the property is under contract, but the seller and their agent continue to allow prospective buyers to view the home. This differs from a standard “pending” status where showings are halted because the seller is confident in the primary deal.

A primary reason for maintaining showings is the presence of contingencies in the accepted offer. For example, if the buyer’s offer is contingent on the sale of their current home, a home inspection, or an appraisal, the seller may choose to keep showing the property. This strategy allows the seller to solicit backup offers, providing a safety net in case the initial contract encounters unforeseen issues and falls through.

Guidance for Prospective Buyers

For individuals interested in a home listed as “pending with showings,” it is still possible to make an offer. Such an offer would be considered a backup offer, a legally binding contract that positions a buyer next in line should the primary deal fail. While the chances of a primary deal falling through may be relatively low, around 6% according to some reports, it does happen due to reasons like financing issues or inspection problems.

To make a backup offer, buyers should work with their real estate agent to negotiate terms similar to a primary offer, including price and contingencies. If the backup offer is accepted by the seller, it becomes a binding contract that activates if the initial agreement is terminated. Buyers should proceed with due diligence, including inspections and securing financing, as their earnest money deposit will be returned if the primary deal closes successfully.

Seller’s Perspective on Continued Showings

From a seller’s standpoint, continuing to show a property after accepting an offer provides several advantages. The main benefit is the ability to accumulate backup offers, which serves as security if the primary contract does not close. This approach minimizes the risk of having to re-list the property, saving time and effort in marketing and showing the home.

Maintaining market interest through continued showings can also exert subtle pressure on the initial buyer to fulfill their contractual obligations promptly. It signals that other interested parties are ready to step in, potentially encouraging the primary buyer to expedite processes like financing approval or contingency removal. Sellers and their agents communicate this decision to the initial buyer, ensuring transparency while protecting the seller’s interests in a successful sale.