What Does Pending Mean in Real Estate?

If you’re in the market to buy a home, chances are you’ve come across listings that read “pending” instead of “sold.” While you shouldn’t completely ignore homes that are pending, there’s also no reason to get your hopes up. In reality, a home in pending status could still fall through – or be cancelled altogether.

Offer Accepted

If you’re on the hunt for your dream home, chances are that you’ve run across a few properties that have either a contingent or pending status. While this can be disappointing, it doesn’t necessarily mean that you won’t be able to buy the house.

A home will be listed as pending once all of the contingencies on the contract have been met and agreed upon by both parties. This includes things like a home inspection, appraisal, and final mortgage approval.

Once a home goes to Sale pending, the seller will no longer show the property and will not accept new offers from prospective buyers. However, if you have a strong interest in the home and are preapproved for your loan, you may be able to submit a backup offer for consideration in case the pending sale falls through. This is something that your agent can help you with.

Under Contract

You’ve been perusing listings and have finally found the one that has everything you want in a home. However, when you look closer, you see that the house is pending sale. This means that the seller has accepted an offer from a buyer and is moving forward with the transaction.

In some cases, the seller may still be accepting backup offers. This would be indicated by a status of “pending taking back-ups” or “pending no show.” In most cases, though, the sellers are confident that they can work through any remaining contingencies with their buyers and do not need to keep pursuing potential new sales.

If you find your dream home is pending, don’t give up! Although your chance of purchasing the home has passed, you could potentially be the backup buyer if the deal falls through. Check the status daily, and don’t be afraid to ask if you can submit an offer. Keep in mind, though, that a deal can fall through at any time during the escrow process due to unforeseen circumstances or lender issues.

Active With Contract

If you're searching home listings online and come across a house with the status of active with contract or pending, it may be a good idea to make sure you're preapproved for a mortgage and that your financing is in order before making an offer. While this status means the property has a buyer and is closer to closing than other listings, it's not final and still has many contingencies and requirements that need to be worked out before the sale is complete.

In some cases, a listing will be marked as active with contract but also read "taking backup offers" which could mean the seller is interested in hearing from other potential buyers in case the first deal falls through. This is a good sign and it will likely help to speed up the process once a deal does finally close. However, keep in mind that up to 10% of pending sales fall through so you shouldn't feel too discouraged if you find the home of your dreams and it's listed as pending.

Contingent

If you're looking for a new home and find your dream property, it can be devastating when you see the word "pending" on its listing. The good news is, unless the seller chooses to keep it on the market, you will not lose your chance at purchasing the home.

When a property is pending, it means that the sellers have accepted an offer and are waiting to close on the sale. The terms of the agreement should be finalized and any contingencies should have been met, and escrow should be able to finalize the sale within a set amount of time.

However, if you see that the home is listed as "pending release" or "pending taking backups," then this means that the sale is still subject to some conditions and that the seller is open to accepting other offers on the property. Be sure to check the listing status daily and that you're ready to submit an offer when a home goes pending.

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