What Does Pending Mean in Real Estate?

Understanding what pending means in real estate is important whether you’re buying or selling a home. It can be confusing to deal with real estate terminology if you’re not an expert in the area. This is especially true with related terms like pending vs contingent and pending vs under contract. Having a good grasp of these concepts can improve your strategy and help you meet your ideal timelines for buying or selling your home.

What Does Real Estate Pending Mean?

In real estate, “pending” means that a buyer and seller have signed a purchase agreement, and the sale is on track to close on a specified date. Although the home may still appear in some listings, it is effectively off the market.

When a property shows as pending, it means:

• An offer has been accepted by the seller.
• A purchase contract has been signed.
• The buyer is going through final steps and contingencies like inspections, appraisals, and financing.
• The closing date is scheduled.

The meaning of pending in real estate is that the sale is in its final stages, but the deal hasn’t closed yet.

Pending vs Contingent

The difference between pending and contingent is relatively straightforward. Contingent means the seller has accepted the buyer’s offer, but there are conditions that need to be met before the deal closes. These contingencies can include:

• The home passing a home inspection.
• A professional appraisal at or above the purchase price.
• The buyer’s financing approval.
• The buyer selling their current home.

Pending means those contingencies have either been met or waived, and the sale should close successfully. That is, barring any unexpected difficulties. Although the difference between the two, it is largely a matter of additional steps, these steps can cause the deal to fall through. When a sale is pending, it is much more likely to close on schedule.

Pending vs Under Contract

The terms “pending” and “under contract” are often used interchangeably. In many markets, the terms are essentially equivalent. However, in other markets, they are not the same.

In some areas, such as Virginia and Maryland, “under contract” describes any accepted offer. Note that usage of these terms is not always consistent across the state or region. In some areas of Texas, for example, a home that is listed as “under contract” has an accepted offer but is still in the contingency period. Whereas a pending home sale means the contingencies have been met. In other areas of Texas, under contract and pending mean the same thing.

What does under contract vs pending mean in your specific market? Usage varies widely; consult with a real estate agent who has experience in the market where the home is located for clarity and reassurance!

What to Expect When a Sale Is Pending

A pending home sale typically closes in 30 to 45 days. During the pending period, buyers and sellers have tasks to complete and must attend to deadlines.

Buyers need to arrange for the home inspection and finalize their financing. Normally, the lender arranges for the appraisal, but the appraisal must be completed before their mortgage loan will ultimately be approved. Depending on the results of the home inspection, buyers may also ask for repairs to the home, or they may negotiate a lower cost and take care of the repairs themselves. Finally, some buyers request access to the home to measure for window coverings and appliances.

Sellers are required to allow access to the home by the home inspector and the appraiser. They also need to make any repairs identified in the home inspection or negotiate a lower selling price to compensate the buyer for the cost of the repairs.

Can a Pending Home Sale Fall Through?

Pending vs contingent sales are less likely to fall through. This is because most of the major contingencies have been met – but it can still happen.

Problems with the property’s title could arise at the last minute. For example, a title search may show that there are liens against the property. It can also show that the seller does not otherwise have a clear title to it. In some cases, the title search may show that the person trying to sell the property does not, in fact, own it and does not have the legal right to sell it.

What Happens to Earnest Money if a Contingent or Pending Home Sale Falls Through?

If the sale fails because a contingency in the contract is unmet (ex, a failed home inspection, low appraisal, denial of financing), the buyer typically gets their earnest money back. However, if the buyer backs out for reasons not covered by contingencies or if they fail to meet the deadlines set out in the contract, the seller may be entitled to keep the earnest money.

In some cases, fault isn’t clear-cut, and the buyer and seller may need to negotiate a compromise. This could include spliting the earnest money. Understanding the contingencies in your purchase contract and working closely with your agent is important. It may ensure you don’t lose your earnest money during the contingent or pending home sale period.

What to Do When You See Pending Listings

A pending home might still show up in online listings. If you fall in love with a home but see that it’s marked as pending, there is always a possibility that the deal will fall through. Then, you’ll be able to bid on the home.

Ask your real estate agent if backup offers are being accepted. Keep the home in mind in case the pending home sale fails. In the meantime, tell your agent what you liked about the house so they can show you good alternatives.

Understanding pending vs contingent and pending vs under contract can be complicated.  Your real estate agent is your best resource where this is concerned. Whether you’re selling or buying a home, use your agent’s expertise to help you stay on top of the process and move toward a smooth and successful closing!