A pending status on a house means that the seller has accepted an offer, the contract has been signed, and the purchase agreement terms have been met. It’s the last step before a home goes to closing, where ownership will officially be transferred, the purchase is completed, and all necessary documents are signed.
Although a pending sale is almost complete, the property is not officially sold yet. In some cases, a motivated buyer may still submit an offer, but it’s unlikely to be considered unless the seller can accept backup offers and the current deal falls through.
Pending vs. Other Listing Statuses
As you search Homes.com listings, different statuses will indicate where a property is in the selling process. Here’s how a pending sale compares with other listing statuses:
- Coming Soon: This status indicates that the property is not yet for sale but will be listed shortly. It’s common for the listing agent to market a home with a coming soon status while the property is being prepared for sale. During this early stage, agents can advertise the property, promote upcoming open houses, and field questions from prospective homebuyers and their agents.
- For Sale: A home listed as “for sale” is available and marketed to attract homebuyers.
- Under Contract: When a home has an under-contract listing status, the purchase agreement’s terms must still be satisfied to complete the sale. These could include repairs the seller has agreed to or contingencies that both parties signed off on when the offer was accepted.
- Pending: The buyer and seller have agreed to the contract, and all requirements have been met. In some cases, a listing can go straight from “for sale” to “pending” if the seller receives a strong offer.
Do Pending Home Sales Fall Through?
While it’s unlikely, there are situations that can bring a deal to a halt after it enters pending status. A report from the National Association of Realtors (NAR) indicates that about 5% of pending home sales fall through.
“The two biggest trigger items are the inspection and appraisal,” says Scott Garnett, a real estate agent with Samson Properties in Richmond, Virginia. “Occasionally, there are issues with financing, or the buyer backs out.”
Some of the most common reasons why a pending home sale can fall through include:
- Home inspection issues: A home inspection that reveals unexpected issues might prompt the buyer and seller to renegotiate the purchase price. If a home inspection contingency is in place and they cannot reach an agreement, the buyer can cancel the sale and keep their earnest money deposit.
- A low home appraisal: If a home appraisal is lower than the sale price, the mortgage lender will require the buyer to make up the difference to move forward with the sale. As a buyer, you may be able to renegotiate or back out of the deal if you have a home appraisal contingency in place. A Home Valuation Report can help sellers reassess their sale price if an appraisal is lower than expected.
- Financing issues: A home sale cannot proceed if a buyer’s financing falls through. As a buyer, it’s wise to seek a mortgage preapproval early in the house hunting process and ensure you fully understand how much house you can afford.
- Title issues: Liens, encumbrances and other title defects can complicate a real estate transaction. Ensure you get title insurance, and order a title search to uncover any issues.
- Short sale issues: Because a short sale is an attempt to avoid foreclosure, the seller’s lender has the final say in who purchases the property. If the buyer fails to meet the lender’s criteria, the seller must relist their home.
- The buyer can’t sell their existing home: Some buyers may add a home sale contingency to their offer, indicating that they can back out of a home purchase without penalty if their current home does not sell within a given time, typically 30 to 60 days. Accepting an offer with a home sale contingency can be risky for sellers; it’s wise to check the local days on market (DOM) to better understand how quickly a home might sell.
- Buyer’s remorse: It’s possible that a buyer may rush into an offer only to regret their decision later, particularly if it’s a fast-paced market. In other cases, a homebuyer might change their mind due to unforeseen circumstances or life events. A buyer that backs out for these reasons can face challenges, including the potential loss of their earnest money deposit or legal consequences.
When a sale is canceled, the home usually returns to the market. The seller may make needed repairs before relisting, adjust the listing price, have their agent remarket the home and notify any interested buyers.
How Long Do Most Houses Stay Pending?
Homes are typically listed as pending for 30 to 60 days, but the timeline to get to closing is different for every property. How quickly a listing moves from pending to sold depends on the terms that the buyer and seller agreed to. Other aspects of the homebuying process, such as home inspections, appraisals and mortgage approval, can also impact the time it takes for a home to move from pending to sold.
Can You Make an Offer on a Pending Home Sale?
Yes, it’s possible to make an offer on a pending home if the seller is accepting backup offers. However, the chances of your offer being accepted are fairly slim.
When a home sale is pending, the seller typically won’t accept additional offers unless the existing contract includes a kick-out clause, which specifies that they can continue to show their home and consider new offers. If the seller’s existing deal falls through, they might accept your offer in this scenario.
If you want to pursue a home with a sale pending, ask your real estate agent to monitor the listing so that you’re aware of any changes. If you submit a backup offer, consider strengthening it with terms the seller prefers. These could include a fast closing, a competitive price or fewer contingencies. Consult with your real estate agent and ask about the next steps.
“If I have a client that’s interested in a pending sale, I’ll reach out to the listing agent and let them know that if anything happens with the home to let us know immediately, and we’ll put an offer in,” Garnett says. In the right scenario, a strong backup offer may help you get the home of your dreams.
Micaela Green is an experienced writer who has researched and written about hundreds of neighborhoods across the United States. She is a former freelance content writer with over four years of experience building web content. She holds an M.F.A in Writing from Vermont College of Fine Arts and a B.A. in Art History from Virginia Commonwealth University.
