What Is Pending Status in Real Estate?

“Pending status” in real estate signifies a property has an accepted offer, but the transaction is not yet finalized. This transitional phase means the buyer and seller have agreed on terms, moving the property closer to a completed sale. The property is no longer actively available for new offers, as it is already under contract.

Understanding Pending Status

When a property is listed as “pending,” a buyer and seller have formally agreed on sale terms and signed a contract. The sale is not yet closed, as various conditions and processes must still be completed. This status takes the property off the active market, signaling a committed transaction phase. It represents a significant step in the home buying process, indicating the property is in transition towards ownership transfer. While not yet final, the pending status suggests closing is expected if all remaining steps proceed as planned.

Key Stages During Pending

During the pending period, several activities and due diligence processes typically occur to move the transaction toward closing. These include a home inspection, where a professional assesses the property’s condition, often within 7 to 10 days. This allows the buyer to identify potential issues and negotiate repairs or adjustments.

An appraisal is conducted, where a lender orders an independent valuation to ensure the property’s value supports the loan amount. If the appraisal is lower than the purchase price, it may require renegotiation or the buyer covering the difference. Loan underwriting and financing approval are also completed, with buyers securing their mortgage. This verification of the buyer’s financial situation can take several weeks, typically 30 to 45 days.

A title search and insurance are conducted to ensure clear ownership and identify any liens or legal claims against the property. This verifies the seller’s right to transfer ownership and protects both the buyer and lender. These stages are important for the transaction to proceed to closing, ensuring all conditions of the purchase agreement are met.

Variations of Pending Status

The term “pending” can have different meanings based on remaining conditions or MLS terminology. “Pending (Active Contingent)” or “Contingent” means an offer is accepted, but specific conditions, like a home sale contingency, must still be met. Here, the seller might still accept other offers, as the initial deal could fall through if contingencies are not satisfied.

“Pending (Taking Backups)” or “Show for Backup” indicates the seller is open to receiving backup offers while under contract. This provides a secondary option if the primary deal fails. Conversely, “Pending (No Show)” or “Pending (No Contingencies/Pending Sale)” suggests most contingencies are met, and the deal is highly likely to close. In these cases, the seller stops showing the property, and new offers are less likely to be considered.

Making a Backup Offer

Even when a property is pending, a buyer can still make an offer. This “backup offer” is a secondary offer that can become the primary contract if the initial pending deal falls through. Making a backup offer can position a buyer to acquire a desirable property, especially in competitive markets, if the first transaction encounters issues.

While pending, the seller is legally bound by the first contract and cannot entertain new primary offers. However, accepting a backup offer provides the seller an alternative without re-listing the property if the first sale collapses. Buyers submitting a backup offer often provide earnest money, held in escrow, demonstrating serious intent. This offer becomes active if the initial purchase agreement is terminated, moving the backup buyer into the primary position.

When a Pending Sale Fails

A pending real estate transaction can sometimes fail to close, causing the property to return to the market. Common reasons include issues identified during the home inspection, such as unforeseen repairs. Appraisal problems, where the property’s appraised value is lower than the agreed-upon sale price, can also derail a transaction if financing is affected or a price agreement isn’t reached.

Buyer financing falling through is another frequent cause, occurring if a buyer’s financial situation changes or their loan application is denied after pre-approval. Title issues, like undisclosed liens or errors in public records, can also prevent a sale until resolved. If the deal fails, the property returns to an “active” status, making it available for new offers. Any accepted backup offers would then have the opportunity to become the primary contract.