In the world of real estate, terminology can sometimes be confusing—especially for first-time homebuyers or sellers. If you’ve been browsing listings or recently put your home on the market, you’ve likely come across the word "pending" and wondered, “What does that even mean?” Well, you’re not alone. Understanding what “pending” means in real estate can help you navigate your home buying or selling journey with greater clarity.
In this article, we’ll break down the meaning of “pending,” why it matters, and what you should do if you find yourself in the middle of a pending real estate transaction. Whether you’re buying, selling, or just curious about how the real estate market works, this is the ultimate guide to understanding pending status.
What Does Pending Mean in Real Estate?
In real estate, pending refers to a home that has an accepted offer, but the sale isn’t finalized yet. At this stage, the home is technically “off the market,” but the deal isn’t fully closed. The buyer and seller have agreed to the terms, but there are still steps to complete before the property officially changes hands.
To put it simply: Pending means a sale is in progress, but it’s not a done deal.
Why Do Homes Go Pending?
When a home is listed for sale, it typically goes through different statuses:
Active: The home is available for sale, and the seller is accepting offers.
Pending: The seller has accepted an offer, but the sale hasn’t closed.
Sold: The transaction is complete, and the home has changed ownership.
Pending status occurs after the seller has accepted an offer, and the property is in the final stages of the transaction process. It signals that negotiations have been successful, but it also indicates that certain conditions (or contingencies) still need to be met before the deal is finalized.
The Different Types of Pending Statuses
Real estate deals aren’t one-size-fits-all. Pending statuses can vary depending on the progress of the sale. Understanding the different types of pending can help you gauge where a deal stands.
Pending – No Show
When a property is listed as Pending – No Show, it means that the seller has accepted an offer and doesn’t want to show the home to any more potential buyers. This type of pending status signals that the sale is highly likely to close.
In other words, the seller is confident that everything is moving forward as planned, so they stop showing the property to others.
Pending – Taking Backups
With Pending – Taking Backups, the seller has accepted an offer, but they’re still open to receiving backup offers. Why? There are various reasons a sale might fall through (more on that later), and backup offers give the seller more security.
This status suggests that while the seller is proceeding with the current offer, they’re keeping their options open just in case the deal doesn’t go through.
Pending – Short Sale
In cases where a home is sold for less than the outstanding mortgage, it’s referred to as a short sale. The Pending – Short Sale status means that the seller has accepted an offer, but the sale requires lender approval.
Short sales tend to be more complex and take longer to finalize because the lender must agree to accept less than what’s owed on the mortgage.
Pending – Contingent
Some pending sales are contingent, meaning that the deal hinges on certain conditions being met. Common contingencies include:
Financing: The buyer’s loan must be approved.
Inspection: The home must pass an inspection without major issues.
Appraisal: The home’s value must match the buyer’s offer.
If these contingencies aren’t met, the deal could fall through, which is why a Pending – Contingent status indicates that there’s still some uncertainty in the process.
Why Do Pending Sales Fall Through?
Even though a pending sale means that an offer has been accepted, the deal isn’t set in stone. Pending sales can—and sometimes do—fall through for a variety of reasons. Here are some of the most common ones:
Financing Issues
One of the biggest reasons a pending sale fails is that the buyer’s financing falls through. Even if they’ve been pre-approved for a mortgage, unexpected changes in their financial situation—like a job loss or increased debt—can cause a lender to back out.
Home Inspection Problems
During the inspection phase, any significant issues with the property (like structural problems or electrical issues) can cause the buyer to rethink their offer. If the inspection reveals costly repairs, the buyer may request the seller to address the problems. If they can’t agree on the repairs, the sale could fall apart.
Appraisal Gaps
In some cases, the home may appraise for less than the buyer’s offer. If the lender won’t finance the full purchase price based on the lower appraisal, the buyer may have to come up with the difference or the deal could collapse.
Title Issues
Problems with the home’s title—such as outstanding liens or disputes over ownership—can also derail a pending sale. Title issues must be resolved before a property can change hands.
What Should Buyers Do When a Home Is Pending?
If you’re interested in a home that’s listed as pending, don’t lose hope! While it’s true that the sale is likely to go through, deals do fall apart, and backup offers can sometimes get accepted.
Here’s what you can do:
Submit a Backup Offer: If the seller is accepting backups, you can submit an offer that will go into effect if the original deal falls through.
Stay in Touch with Your Agent: Keep an open line of communication with your real estate agent. They’ll let you know if the sale is at risk and advise you on your options.
Keep Looking: While it’s tempting to pin your hopes on one property, it’s always smart to keep exploring other options in case the pending sale closes.
What Should Sellers Do When a Home Is Pending?
As a seller, once your home is pending, you’ll want to stay on top of the process to ensure that everything goes smoothly. Here’s what you should do:
Keep Your Home in Good Condition: Even though you’ve accepted an offer, the buyer will still be inspecting the home. Make sure everything is in good shape to avoid any issues.
Cooperate with the Buyer: Whether it’s providing access for inspections or addressing contingencies, be responsive to the buyer’s needs. The faster you can work through the pending process, the quicker you can close the deal.
Communicate with Your Agent: Your real estate agent will help you navigate any issues that come up and keep you informed throughout the transaction.
How Long Does a Home Stay in Pending Status?
A home typically stays in pending status for 30 to 60 days, depending on the complexity of the transaction. However, the timeline can be shorter or longer depending on factors such as the buyer’s financing, inspection results, and whether the sale involves a short sale.
If everything goes smoothly, most pending sales close within a month. But remember, the process can be delayed if there are any unforeseen issues with financing, inspections, or contingencies.
Why It’s Important to Work with an Experienced Real Estate Agent
Navigating the real estate market can be tricky—especially when it comes to understanding the nuances of pending sales. This is where an experienced real estate agent can be invaluable. Whether you’re a buyer or a seller, working with a knowledgeable agent can help you avoid common pitfalls and ensure that the pending sale moves forward smoothly.
Here’s why you should work with a successful local real estate agent:
Expert Guidance: Agents understand the ins and outs of real estate transactions, including pending sales, and can offer valuable advice every step of the way.
Negotiation Skills: A skilled agent can negotiate on your behalf, whether it’s pushing through contingencies or securing backup offers.
Local Market Knowledge: Experienced agents know the local real estate market inside and out, ensuring that you’re making informed decisions.
Problem Solvers: If any issues arise during the pending process, a seasoned agent will know how to navigate and resolve them, keeping the sale on track.
FAQs
1. Can you make an offer on a house that’s pending?
Yes, you can make a backup offer on a home that’s listed as pending. If the original sale falls through, the seller may consider your offer.
2. What’s the difference between pending and contingent?
A contingent sale means the deal depends on specific conditions being met (like financing or inspection), while pending indicates that all contingencies have been satisfied, and the sale is nearing completion.
3. How often do pending sales fall through?
While most pending sales close successfully, about 3-5% of deals fall through due to financing issues, inspection problems, or other unforeseen circumstances.
4. Can a seller back out of a pending sale?
In most cases, a seller can only back out of a pending sale if the buyer fails to meet certain contingencies or deadlines. Sellers who back out without cause may face legal consequences.
5. What happens after a home goes pending?
Once a home goes pending, the buyer and seller work to meet any remaining requirements—such as financing, inspections, and appraisals—before the sale is finalized.
6. Should I stop looking for homes if I’ve made an offer on a pending house?
It’s always a good idea to keep exploring other options until your offer is officially accepted. Real estate transactions can be unpredictable, and it’s wise to have backup plans.
Conclusion
Understanding the term “pending” in real estate is crucial for anyone involved in the home buying or selling process. While it signals that a sale is in progress, it doesn’t necessarily mean the deal is done. Whether you’re buying or selling, working with a successful local real estate agent can help you navigate the complexities of pending sales, ensuring that the transaction moves forward smoothly.
Remember, a real estate agent is your best ally in understanding what pending means, helping you submit backup offers, and negotiating through any challenges that may arise during the process. When in doubt, trust the experts to guide you through every step of your real estate journey.
King & Edge Real Estate Agents in Boise, Idaho
As experienced Boise real estate agents, we are honored to have the opportunity to serve you and be a part of your real estate journey. Let us guide you towards a successful and rewarding experience, where your goals become our goals, and your vision becomes a reality. Contact us today and discover the unparalleled service and expertise that sets King & Edge Real Estate apart as we help you sell your home in Boise or find your place to call home.
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Ashley Carpenter Boise Real Estate Agent
Even before earning her real estate license, Ashley was enthusiastically developing a passion for real estate! After double majoring in International Relations and Latin American Studies at Holy Names University in Oakland, a brief stint as a campaign fundraiser and interning in her local congressional office taught her, she didn’t like working in politics. Ashley then started applying her administrative skills and marketing insights in the real estate industry, beginning in January of 2017. Looking to buy, sell or invest in real estate? Contact Ashley today to start a conversation about your real estate needs! Ashley is known as the best Spanish-speaking real estate agent in Boise.
