A pending status in real estate means the seller accepted a buyer’s offer. But the sale isn’t finalized yet. This status shows progress for a successful transaction. Yet, the timeline can take a week to 60 days to close. It depends on factors like financing and inspections.
A pending sale doesn’t guarantee the deal will close. You may face challenges now. They could include bad home inspections or financing problems. Buyers and sellers often deal with different contingencies. These include mortgage needs and property assessments.
When we look at pending sales in real estate terms, they differ from contingent listings. The pending status indicates that all contingencies have been met. This knowledge helps buyers and sellers know where they stand in a deal. It is advantageous when looking at backup offers or assessing market chances.What Does Pending Mean on a House?
Sale pending vs. active listing
An active listing lets buyers make offers on the property. In contrast, a pending status means the seller has accepted an offer. Furthermore, a pending status differs from an active under-contract listing. Under contract means the sale is still in the early stages. We need to resolve some contingencies. A pending status means the deal is moving forward and is close to closing.
This index tracks signed contracts that are still open. It covers around 20% of real estate deals from many listing services nationwide. The data predicts future existing home sales. About 80% of pending homes close in two months.
Types of pending status
Steps in a Pending Home Sale
Offer Acceptance
Home inspection period
The inspection phase starts within 10 days of contract signing. A licensed inspector examines the property’s structure, systems, and major components. Buyers often attend inspections to learn about their future home’s condition. Buyers can ask for repairs or price changes after they receive the inspection report. This is true if they find any problems. The seller then decides on making repairs or adjusting the sale price based on the situation.
Mortgage approval process
Final walkthrough
The checklist has three key tasks:
If issues arise during the walkthrough, buyers can:
Why Pending Sales Fall Through
In late 2021, most real estate deals reached a successful conclusion. But around 6% of buyers canceled their agreements. Understanding why pending sales fail helps buyers and sellers prepare for problems.
Failed home inspections
Home inspections reveal the property’s condition and potential issues. When findings change what buyers expect from their purchase, deals often fall apart. The inspection may find structural issues, roof damage, or mold. Buyers might see
These problems are too big to manage. First-time buyers take on more risks. Many haven’t worked on houses with their parents.Mortgage denial
Low appraisal
Making an Offer on a Pending House
Backup offer process
When accepted, the backup buyer puts earnest money in escrow, like a primary offer. But, unlike standard offers, backup contracts activate only if the primary deal collapses. The earnest money stays in escrow until the main sale closes or the backup offer proceeds.
The backup offer process helps sellers avoid relisting their property. This way, they can steer clear of any potential market stigma. Properties marked “back on the market” may worry future buyers about hidden problems. Through backup offers, sellers maintain a safety net without disrupting the primary transaction.Working with the listing agent
In competitive markets, buyers should make backup offers. These offers need to be strong and should exceed the asking price. Including a mortgage pre-approval letter demonstrates financial readiness to the seller. Some buyers choose to waive certain contingencies. They believe it strengthens their position. But this also comes with risks.
The listing agent must add a kick-out clause to the contract. This clause allows for accepting backup offers from other buyers. This clause allows sellers to continue showing the property while under contract. However, the primary contract requires termination before any backup offer advances.
Backup offers carry limitations as well. Backup offers can push primary buyers to close faster. Earnest money tied to a backup offer prevents buyers from exploring other properties. This money stays tied up until someone completes the main sale or it falls through.Conclusion
Understanding pending status helps buyers navigate real estate transactions with confidence. Most pending sales finish in 30 to 60 days. However, buyers should expect possible delays or issues. The success rate for pending sales is high. Ninety-five percent of these transactions reach a successful conclusion.
Backup offers let buyers compete for pending properties, but patience is key. Buyers should consider the benefits and drawbacks. For example, buyers may tie up earnest money, and they can find timelines uncertain. Smart buyers team up with real estate agents. They check pending properties with great attention. This way, they can jump on chances if primary sales don’t go through.
Real estate transactions involve many steps, from pending status to closing day. Home inspections, mortgage approvals, and final walkthroughs serve as checkpoints toward ownership. Understanding this process helps buyers and sellers know what to expect. This way, they can navigate each stage with a clear purpose.FAQs
Pending status indicates that a seller has accepted a buyer’s offer on a property. They are currently progressing with the sale, but they haven’t finalized it yet. This stage usually takes 30 to 60 days. It includes steps such as home inspections, mortgage approvals, and final walkthroughs.
While it’s possible to make an offer on a pending house, it’s not guaranteed that the seller will consider it. Some sellers accept backup offers in case the primary deal falls through. Reach out to the listing agent. Ask if you can submit a backup offer.
A contingent status means the seller accepted an offer. But the sale depends on conditions, such as inspections or financing. The pending status indicates that the team has met all contingencies. The sale is moving toward closing, but it’s not finalized yet.
Approximately 5% of pending home sales fall through. Common reasons include failed home inspections, mortgage denials, or low appraisals. However, the vast majority of pending sales, about 95%, reach a successful conclusion.
The final walkthrough occurs 24-48 hours before closing. Buyers check the home’s condition. They ensure that the repairs are complete. They also test appliances and systems. They confirm that the sellers have vacated the premises. If issues arise, buyers can request repairs, delay closing, or negotiate compensation.