What Does Pending Mean In Real Estate?

The real estate market can feel like a maze, especially when you’re trying to buy or sell a home. If you’ve spent any time browsing listings, you’ve probably come across the term "pending" and  wondered, “What does pending mean in real estate?” 

Whether you're a first-time buyer, a seasoned homeowner, or even someone selling their home, understanding what "pending" means can provide clarity and help you navigate your next steps. 

What Does "Pending" Mean in Real Estate? 

When you see a home listed as pending, it means the seller has accepted an offer, but the sale  hasn’t been finalized yet. Pending status typically indicates that both the buyer and seller have agreed on the main terms of the sale, but there are still steps to complete before the property  officially changes hands. 

The pending stage is crucial because it signifies that while an offer is in place, there are still legal and financial tasks that need to be completed. The home is essentially off the market during this  phase, although, in some cases, backup offers might still be accepted. 

Why Do Homes Go Pending? 

There are several reasons why a home might enter pending status, including: 

• Appraisal: The lender often requires an appraisal to confirm the home’s value before finalizing the loan. 
• Home Inspection: Buyers may request a home inspection to ensure the property is in good condition. 
• Financing: Buyers may need time to secure their mortgage financing. 
• Title Search: A title company will verify that the seller has the legal right to sell the home. 

Until all these tasks are checked off, the home remains in the pending stage.

The Different Types of Pending Status 

Not all "pending" labels mean the same thing. Let’s break down some of the different variations of pending status that you may encounter in Pleasant Hill or Martinez. 

Pending - Taking Backup Offers 

In this scenario, the seller is accepting backup offers in case the current deal falls through. While  an offer has been accepted, the seller is hedging their bets. If you're interested in the home,  there’s still a slim chance you could swoop in if the first deal doesn’t go as planned.

Pending - No Showings 

When a home is marked as pending no showings, it means the sale is in progress and the seller is not entertaining any more offers. The deal is expected to close, and other buyers won’t be able to tour or bid on the property. 

Pending - Short Sale 

A short sale pending status happens when the seller is negotiating with their lender to sell the home for less than the remaining mortgage. These deals can take longer due to additional lender approval processes, but the pending status still means an offer has been accepted. 

Pending - Over 4 Months 

When a property has been pending for over 4 months, it may signal that there are some unusual complications with the sale. These could range from title issues to financing delays, but it usually means the process is taking longer than anticipated. If you’re a buyer, this might be an  opportunity to explore whether the deal might fall through. 

Pending - Lender Approval 

Sometimes a sale is pending lender approval, which is often seen in short sales. The sale is  contingent on the lender’s agreement to the terms of the sale. These can take longer to resolve and aren’t guaranteed until the lender gives the final nod. 

What Happens When a House is Pending? 

Once a home is pending, the transaction is in a phase where everything has to fall into place before the closing. This process typically involves the following steps: 

1. Finalizing Financing: The buyer will work with their lender to finalize their loan. The lender will verify the buyer's financial information, including credit scores, income, and  employment status. 
2. Appraisal: The lender usually requires a home appraisal to ensure the home is worth the  agreed-upon price. If the appraisal comes in lower than expected, the buyer and seller  may need to renegotiate the price or the buyer might have to make up the difference. 
3. Home Inspection: A home inspection gives buyers the chance to ensure the property is in good condition. If significant issues arise, the buyer can request repairs or even back out  of the deal.
4. Title Search: The title company will confirm that the seller has the legal right to sell the home and that there are no outstanding liens or claims against the property. 
5. Contingency Removal: If the contract includes contingencies (such as financing or home  inspection), these need to be resolved before moving forward. 
6. Closing Day: If all goes according to plan, both parties will sign the final paperwork, and  the title will be transferred from the seller to the buyer. The buyer will receive the keys, and the home will officially be sold. 

Can You Still Make an Offer on a Pending Home? 

Here’s a question a lot of people have: Can you still make an offer on a home that’s pending? 

The short answer is no, at least in most cases. Once a home is in the pending status, the seller has committed to the buyer, and they're not actively seeking new offers. However, there are some exceptions, such as when a seller is accepting backup offers or when the deal is at risk of falling  through. 

If you’re absolutely in love with a home that’s pending, you can ask your real estate agent to stay in touch with the seller’s agent. In some cases, pending deals do fall through, and if that happens,  you might have a shot at purchasing the home. 

Why Do Pending Sales Fall Through? 

Unfortunately, not all pending sales make it to the finish line. There are several reasons why a pending sale might fall through: 

• Financing Issues: If the buyer fails to secure financing, the sale can collapse. 
• Low Appraisal: When a home is appraised for less than the agreed-upon price, the buyer  and seller might be unable to agree on new terms. 
• Inspection Problems: If significant issues are uncovered during the home inspection, the  buyer may choose to back out. 
• Title Problems: Any unresolved title issues can also cause a sale to fall apart. 

It’s important to work with an experienced real estate agent who can help navigate these potential pitfalls and keep the deal on track. 

How Long Does It Take for a Pending Sale to Close? 

Typically, it takes 30 to 60 days for a pending sale to close, but this timeline can vary based on  several factors:

• The buyer’s financing process: If the buyer is using a loan program that requires more paperwork, such as an FHA or VA loan, the closing might take longer. 
• Contingencies: If there are contingencies, such as home repairs or an appraisal issue, these can delay the closing. 
• Title issues: Sometimes there are unexpected title problems that take time to resolve. 

Buyers and sellers should remain patient during this phase, but they can also keep communication open to ensure everything moves along as efficiently as possible. 

What Should Sellers Do While Their Home is Pending? 

For sellers in Martinez or Pleasant Hill, here’s a key tip: Don’t get too comfortable once your home is pending. Though it's exciting to have a buyer in place, the sale isn't final until closing. Stay flexible, maintain the property in good condition, and be ready to address any issues that might arise during the inspection or appraisal process. 

Also, continue to collaborate with your real estate agent. Working with an experienced local agent will help you stay prepared for any hiccups in the process and maximize your chances of a successful sale. 

FAQs About Pending Sales in Real Estate 

Can a pending sale fall through?

Yes, a pending sale can fall through for several reasons, such as financing issues, inspection problems, or low appraisals. That’s why it’s important to have a skilled real estate agent to guide you through the process. 

How long does it take to close on a pending home?

The average time for a pending home to close is 30 to 60 days. This can vary depending on factors like financing, inspections, and any contingencies in the contract. 

Can you back out of a pending sale as a buyer?

Yes, buyers can back out of a pending sale if contingencies aren’t met, such as inspection or financing contingencies. However, doing so without a valid reason could result in penalties, such as losing their earnest money. 

Is a pending home still for sale?

No, once a home is pending, it’s technically off the market,  though some sellers may still accept backup offers in case the deal falls through. 

Can a seller accept another offer while a sale is pending?

Typically, no. Once the home is in  the pending stage, the seller has committed to the current buyer. However, in some cases, the seller may accept backup offers. 

What happens if a pending sale doesn’t close?

If a pending sale falls through, the home is usually relisted for sale, and the seller can accept new offers from other interested buyers.

Conclusion 

When it comes to buying or selling a home in areas like Pleasant Hill or Martinez, knowing what  "pending" means in real estate can give you an edge. Understanding the different types of pending status, the reasons pending sales fall through, and what happens during the pending  phase can help you stay informed and prepared. 

Whether you’re buying or selling, the best way to ensure a smooth real estate transaction is to work with an experienced and successful local real estate agent. They can navigate you through the complexities, help you avoid common pitfalls, and make sure you get the most value for your  home. 

If you’re in the process of buying or selling in Pleasant Hill or Martinez, keep this guide in mind  and work closely with professionals who know the local market. You’ll be well on your way to achieving your real estate goals! 

Ridge Real Estate Agents in Martinez & Pleasant Hill, California 

We’re Ridge Real Estate agents, serving the Martinez and Pleasant Hill, California areas. Our  goal is to make your experience successful and fulfilling. It is our mission to deliver outstanding  service to home buyers and sellers everywhere. Your dreams are our priority, and we’re dedicated to making them come true. Reach out to us today to experience our exceptional service  and knowledge. Whether you’re selling your home or looking for a new one, we’ve got you covered.