When a house is marked as pending, it signals that the seller has accepted an offer, and the contract has been signed. At this stage, all purchase agreement terms have been fulfilled, and the transaction is in the final steps before closing. The ownership transfer takes place officially once all required documents are signed and the purchase is completed.
While the sale is close to being finalized, it is not yet complete. In some cases, a keen buyer may still have an opportunity to make an offer if the current deal falls through and the seller is open to considering backup offers.
Comparing Pending Status with Other Listing Statuses
When browsing through Homes.com listings, you’ll come across various statuses that indicate the progress of a property sale. Here’s how a pending sale differs from other listing statuses:
- Coming Soon: This status means that the property is not yet available for sale but will be listed soon. Selling agents often promote homes as “Coming Soon” while they prepare them for listing. During this phase, agents may market the property, advertise open houses, and respond to inquiries from potential buyers.
- Under Contract: When a home is listed as “Under Contract,” it means an offer has been accepted, but certain conditions must still be met before finalizing the sale. These terms may include agreed-upon repairs, contingencies, or financing approvals. If all conditions are satisfied, the sale moves to the pending stage.
Are Pending Home Sales at Risk of Falling Through?
Although rare, some pending home sales do not reach completion. According to a study by the National Association of Realtors (NAR), approximately 5% of pending home sales fail to close.
Scott Garnett, a real estate agent at Samson Properties in Richmond, Virginia, notes that the two most common reasons for a failed pending sale are inspection issues and financing problems. Sometimes, buyers also decide to withdraw for personal reasons.
Common Reasons a Pending Home Sale May Fall Through
- Home Inspection Issues:
- If unexpected problems are discovered during a home inspection, the buyer and seller may renegotiate the purchase price or request repairs. If an agreement cannot be reached, and a home inspection contingency is in place, the buyer can withdraw from the sale and retain their deposit.
- Appraisal Discrepancies:
- If a home appraises for less than the agreed-upon purchase price, the buyer may need to cover the difference. Mortgage lenders may not approve a loan for more than the appraised value. A home appraisal contingency allows buyers to renegotiate or withdraw from the transaction if the appraisal comes in too low. Sellers can use a Home Valuation Report to reassess their asking price if an appraisal is lower than expected.
- Financing Issues:
- A home sale may be delayed or canceled if the buyer’s financing falls through. To avoid this, buyers should obtain mortgage pre-approval early in the home search process to ensure they understand their budget and financial capacity.
- Title Problems:
- Issues such as liens, encumbrances, or disputes over ownership can complicate a sale. Title insurance and a thorough title search can help identify and resolve such problems before the sale progresses.
- Short Sale Complications:
- In a short sale, the lender must approve the final buyer. If the buyer does not meet the lender’s requirements, the seller may have to relist the home, delaying the transaction.
- Buyer’s Home Sale Contingency:
- Some buyers include a contingency stating they will only proceed with the purchase if they sell their current home within a set timeframe (usually 30–60 days). If their home doesn’t sell in time, they can withdraw from the deal. Sellers should assess the local average days on market (DOM) before accepting an offer with this condition.
- Buyer’s Remorse:
- Sometimes, buyers regret their purchase decision, especially in fast-moving real estate markets. If they withdraw from the deal, they may risk losing their earnest money deposit or face legal consequences.
If a sale falls through, the home usually returns to the market. The seller may choose to make repairs, adjust the asking price, or work with their real estate agent to market the property more effectively.
How Long Do Homes Stay in Pending Status?
In real estate transactions, homes typically remain pending for one to two months before closing. However, the actual time frame varies based on factors such as home inspections, appraisals, financing, and the agreed-upon contract terms between the buyer and seller.
Can You Make an Offer on a Pending Home?
Yes, you can submit an offer on a home that is pending, but the chances of your offer being accepted are low. The seller may only consider backup offers if there is a risk of the current deal falling through.
Some contracts include a kick-out clause, allowing the seller to consider and accept another offer if the existing deal is not finalized within a certain timeframe. If you’re interested in a pending home, stay in touch with your real estate agent to monitor any status changes. You may also submit a strong backup offer with competitive terms, such as a faster closing or fewer contingencies.
Scott Garnett advises, “When a client is interested in a pending home, I contact the listing agent and ask to be notified immediately if the deal falls through so we can submit an offer.” In such cases, having a solid backup offer can increase your chances of securing the home.
Final Thoughts
A pending home sale indicates that a property is in the final stages of closing but is not yet fully sold. While most pending sales proceed as planned, issues like financing, inspection problems, or appraisal discrepancies can cause a deal to fall through. Understanding the different listing statuses and potential risks can help buyers and sellers navigate the process effectively.
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