What Does Sale Pending Mean in Real Estate?
You’ve been house hunting for months and have finally found your dream home. However, when you look it up online, you see that the listing status says “sale pending.” Does this mean your chance at buying the home has passed?
Not necessarily. While it is unlikely, deals sometimes fall through and a pending sale could revert back to the market.
It can be frustrating to see your dream home go from active to sale pending, but you shouldn’t give up hope. If you see your listing go to pending, that just means the seller has accepted an offer on the property and is working toward completing a successful closing.
If you’re still interested in the property, check the listing status for any language like “released,” “taking backup offers,” or “continuing to show.” These phrases might mean that the contingencies have been met and that the seller is willing to continue to market the home if the current deal falls through. This is a great way to keep your search alive without over-extending yourself.
Contingent, on the other hand, indicates that all of the buyer’s contingencies have not been met and that the sale is essentially still on the table. It’s possible that a home might have a kick-out clause or that mortgage contingencies and appraisal contingencies might not be satisfied. These situations may cause the sale to fall through and allow the property to return to the market. If you’re serious about buying a home, it’s wise to get pre-approved online to learn how much you can afford before beginning your house hunt. This will help you narrow your search and avoid wasting time looking at homes that you might not be able to afford.
If you are looking for homes, and you see a home that has the word “pending” on it, you should know that that means that the house is still under contract. The seller has accepted an offer and is working to complete the transaction. In order to close on the property, the buyer must satisfy the contingencies in the contract. These include securing financing, conducting a home inspection and getting a title search. These are typically the most time-consuming and stressful parts of a real estate transaction.
When a home is under contract, it can often take weeks for the buyer’s requirements to be satisfied. If a buyer gets cold feet or is not approved for financing, it can be common for the sale to fall through. This is why many buyers make backup offers on a home that has been marked as pending, just in case the current deal falls through.
If a home is pending and has contingencies, it is considered an active listing on the Multiple Listing Service (MLS). A real estate agent will only change the status of a property to pending when they are confident that all the contingencies are met or will be satisfied within a reasonable amount of time. Otherwise, it can be misleading to potential buyers. It is also important to check MLS listings daily to ensure that the home you want has been changed from contingent to pending.
It can be frustrating to find your dream home and see that it’s already “sale pending.” However, it doesn’t mean you’re out of luck. Unforeseen circumstances sometimes occur, causing the sale to fall through. This can happen if the buyer isn’t approved for financing or if they change their mind. In any case, the property will return to the market and become available for new offers.
Depending on the terms of the contract, buyers may be allowed to submit backup offers. This is why it’s important to check listing statuses frequently. If you have your heart set on a specific house, consult with your real estate agent to learn more about the process of placing a backup offer.
Pending and contingent are two different terms in real estate, and it’s vital to know the difference between them. Contingent means the seller has accepted an offer, but it still depends on a number of things to close the deal. This includes a home inspection, loan approval, and other items. As the name implies, a contingent home is closer to being sold than a pending one.
Once all the contingencies have been satisfied, the buyer can close escrow and take ownership of the property. At this point, the home is considered pending in real estate, and no new offers can be submitted until the sale has closed.
However, it is possible for a contingency to pop up after a contract is signed. This can happen if the buyers are not approved for financing or if they are not satisfied with the results of their home inspection. If this happens, the deal can be canceled and the earnest money will be returned to the buyers.
Often, sellers will choose to leave a property active as a “pending” listing even after all contingencies have been met in order to keep the home on the market in case a kick-out clause occurs. Some MLS systems will display the status as Pending-Taking Backups, Pending-Release, or Pending-Continuing to Show.
As a homebuyer, knowing what a pending status means can help you narrow your search for homes in the market. Checking a home’s status daily can give you an idea of how long a listing has been in the pending stage, as well as whether or not the contingencies have been removed. If you find a home you’re interested in that has the pending status, be sure to act quickly and submit an offer before someone else does.
Read More – What does pending mean in real estate
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