If you’re in the market for a new home, you may come across the term “pending.” Read on to find out what pending means in real estate, and make sure you don’t miss out on your dream home!
Table of Contents
What Pending Means in Real Estate Market
So you’ve finally found the house of your dreams, and it’s just right. It has everything on your wish list, and it even fits within your budget. The only problem is that it already has a sale pending.
What pending means in real estate is that a property is under contract. This means that the seller has accepted an offer from a buyer, but the deal is not yet closed.
A property can be placed in pending as soon as a buyer signs the contract, but the property can still be brought back to the market if an inspection or appraisal fails or they can’t secure the finances.
The timeframe for a pending sale can vary, but typically, it takes anywhere from 30 to 60 days to close on a property. During this time, the buyer will obtain financing, conduct necessary inspections, and finalize any other details before the sale is complete.
If you’re searching for a home that is already under contract, you may be able to submit a backup offer. If the current deal falls through for any reason, your offer will be next in line.
What Happens When a Home is in “Pending” Status
Here’s a quick rundown of what happens when a home goes into pending status:
The first thing that happens is that the listing agents will take the home off the market. No more showings will be scheduled, and the home will no longer be advertised.
The listing agent will start the negotiation with the buyer’s agent. This can sometimes be a lengthy process, so it’s important to be patient.
Once an agreement is reached, the buyer will have time to get financing in order. The listing agent will work with the buyer’s lender to ensure everything is on track.
Once the financing is secured, the buyer will need to do a final walk-through of the home to ensure everything is in the same condition as when the offer was made.
Once that is done, the home will go into escrow, and the buyer will start making payments. The whole process can take weeks or even months, so it’s important to be patient and work with a good real estate agent.
Why Homes Sometimes Go Back on the Market After Being Pending
Have you ever wondered why a home might go back on the market after being pending? There are a few different reasons this can happen.
The financing fathrough
If, for some reason, the buyers can’t secure the finances for the house, the sale will fall through. This happens if the borrower loses their job, if the mortgage lender changes their terms, or if other financial issues arise.
Property title issues
If a property has liens or other legalities on its title, then a title check will turn up these issues. The offer is null and void if these problems can’t be solved.
There might be multiple offers when homes are scarce but in high demand in a buyers’ market. The buyer’s lender won’t approve the home loan for more than the market value. If they cannot raise the money, the offer will fall apart.
For the majority of people, buying a home is their biggest investment. Unfortunately, some prospective buyers will return from the real estate deal because of “cold feet.”
House inspection contingency
The home inspection period can be the perfect time to discover issues with a home. If a seller doesn’t fix these issues, a buyer can back out of the contract without losing escrow.
The Benefits and Drawbacks of Making an offer on a Pending Home
If you’re considering making an offer on a pending home, you should know a few things. A pending home is a property with an offer from a buyer, but the sale has not yet closed. Here are some things to consider before making an offer on a pending home:
1. You might be able to negotiate a better sale price
If the home you’re interested in is pending, the seller has already accepted an offer from another buyer. However, that doesn’t mean that the sale is set in stone. You may be able to negotiate a better purchase price with the seller, especially if the other buyer’s offer is not fully contingent on financing or inspections.
2. You can move quickly
If you’re interested in a pending home, likely, you’re also interested in moving quickly. Since the seller has already accepted an offer, they may be motivated to close the deal quickly. This could be ideal if you’re trying to avoid a long and drawn-out home buying process.
3. You may get a head start on the Competition
If you’re looking at homes in a competitive market, making an offer on a pending home could give you a leg up on other buyers. If the other buyers’ offers are contingent on financing or inspections, there’s a chance that their offers could fall through. If you make an offer that’s not contingent on these things, you could be the only buyer left in the running.
1. The home may not be in the condition you want it to be
If you’re making an offer on a pending home, you won’t be able to do a walk-through or home inspection before the sale is finalized. This means that you won’t be able to know for sure what condition the home is in. If you’re particular about the condition of your home, this could be a drawback.
2. You may not have time to think things through
If you’re considering making an offer on a pending home, it’s important to remember that you won’t have much time to think things through. Once you make an offer, the seller could accept it, and you could be obligated to buy the home. This could be a drawback if you’re unsure if you’re ready to buy a home.
Frequently Asked Questions
What’s the difference between pending and contingent?
The main difference between “pending” and “contingent” in real estate is that a property is only considered pending once the seller has accepted an offer. In contrast, a contingent property has an offer contingent on certain conditions being met.
Why would a house be pending for so long?
A house can be pending for a long time because the seller is still considering other offers, the buyer’s financing fell through, or issues with the home need to be resolved.
Can you offer on a pending House?
If a house is pending, an offer has been made and accepted, but the sale has not yet been completed.
Now you know what pending means in real estate. So, if you’re interested in purchasing a pending home, work with your agent to get all of your ducks in a row so you don’t miss out on your dream house!
- Why I Quit Being a Realtor: Is the Stress Worth It? - September 2, 2022
- How to Buy a House Without a Realtor: Pros and Cons - August 17, 2022
- What to Do When Your Realtor Ignores You - August 17, 2022