Introduction: What does Pending mean in Real Estate
When navigating the real estate market, terms like “pending” often cause confusion for both buyers and sellers. In real estate, what does “pending” mean? You can better understand where a property is in the transaction process and what to anticipate next by being aware of this status.
What Does Pending Mean in Real Estate?
A property that has an accepted offer but has not yet closed is referred to as pending in the real estate industry. At this point, the buyer and seller have reached an agreement on terms, but all last-minute procedures, including financing, appraisals, inspections, and legal documentation, are still in progress.
| Stage | Description | Typical Duration |
| Active | Property is listed and available for offers. | Until an offer is accepted. |
| Pending | Offer accepted; closing process is ongoing. | Usually 30-60 days. |
| Under Contract | Similar to pending; indicates a contract is signed but not closed. | 30-60 days typically. |
| Closed/ Sold | Sale is complete; ownership transferred. | Final step in the process. |
Why is the Pending Status Important?
The pending status informs both buyers and sellers that although the sale isn’t yet complete, the house is no longer actively accepting new offers. It implies that buyers are no longer able to place bids on the property. Although it represents progress for sellers, if conditions aren’t met, the deal could still fall through.
How Does a Property Move to Pending?
The status of the property goes from “active” to “pending” as soon as a buyer makes an offer and the seller accepts. This change marks the start of the closing procedure, which consists of:
- Inspections of homes
- Evaluation
- completing the mortgage approval process
- Insurance and a title search
- Taking care of any unforeseen circumstances
Both parties make an effort to fulfill the terms of the contract prior to the official closing date.
Pending vs. Under Contract: What’s the Difference?
A common question is whether “pending” and “under contract” have the same meaning. Despite their similarities, their usage varies somewhat by area or MLS (Multiple Listing Service).
- Pending typically indicates that the sale is nearing closing and that all contingencies have been satisfied.
- An accepted offer with ongoing contingencies is frequently referred to as being under contract.
What Can Cause a Pending Sale to Fall Through?
The closing of a pending sale is not guaranteed. The process can be derailed by a number of problems:
- The buyer’s attempt to obtain a mortgage approval is unsuccessful.
- Major issues are found during a home inspection.
- The appraisal is less than the sale price.
- Legal complications or title issues
- Either the seller or the buyer withdraws during the contingency period.
Both parties can better prepare for any challenges by being aware of these risks.
Tips for Buyers When a Property is Pending
Despite a pending home, buyers can:
- Keep an eye out for cancellations: Deals can occasionally fall through, and the property may become available again.
- Obtain preapproval: Be prepared to respond quickly to new listings.
- Talk to the agents: Keep abreast of developments and possible substitute offers.
Tips for Sellers When Your Home Is Pending
Sellers ought to:
- Attend all appointments: Documentation, appraisals, and inspections must be finished on time.
- Remain receptive: Respond promptly to inquiries or discuss repairs.
- Refrain from accepting backup offers: Unless there are backup plans in place in case the current agreement falls through.
Conclusion
In real estate, the term “pending” denotes a significant stage in the process of purchasing or selling a home. It indicates that although a deal is progressing, it has not yet reached its conclusion. Knowing this status helps both buyers and sellers control expectations, plan for unforeseen circumstances, and ultimately complete a successful transaction.
FAQs: About What does Pending mean in Real Estate
Q1: In real estate, what does “pending” mean?
A: Pending indicates that although an offer has been accepted for a property, the sale has not yet taken place. The deal is underway.
Q2: What is the duration of a pending property?
A: Depending on how soon financing and contingencies are finished, usually between 30 and 60 days.
Q3: Is it possible to cancel a pending sale?
A: Certainly, in the event that either party withdraws during the contingency period or if contingencies are not fulfilled.
Q4: What distinguishes under contract from pending?
A: Under contract may indicate that contingencies are still being resolved, whereas pending typically indicates that they have been cleared.
Q5: Is it still possible for buyers to submit offers on a property that is pending?
A: Usually not, but in the event that the deal falls through and the property becomes available again, they can get ready to take action.
Q6: In the pending phase, what would happen if the appraisal came in low?
A: It can cause the sale to be delayed or go awry, which frequently results in price renegotiations or additional buyer funding.
Q7: After the property is pending, should sellers keep marketing?
A: Usually not, unless there are conditions attached to the sale or the buyer hasn’t committed completely.
