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What Does Pending Mean in Real Estate?

What Does Pending Mean in Real Estate?

What Does Pending Mean in Real Estate

When you see “pending” next to a real estate listing, it means that an offer has been made on the property but it’s not yet been finalized. The seller is still technically free to accept other offers, so don’t get too excited until the sale is officially closed.

Pending can also refer to a situation in which the title to a property is in the process of being transferred from one person to another. This might happen, for example, when a home is being sold and the buyer has already been approved for a mortgage but the sale hasn’t closed yet.

In either case, “pending” is usually a good sign; it usually means that a sale is close to being finalized and that the price will end up as listed, or maybe even lower.

What is Pending in Real Estate?

If you are considering buying or selling a home, it is important to understand the term “pending.” Pending refers to a real estate transaction that is currently in progress. Once a sale is pending, it is usually final and cannot be canceled.

Buyers should be aware that once they make an offer on a home and it is accepted by the seller, the sale is pending and they will likely be required to pay a deposit. If the buyer backs out of the sale after it has been accepted, they may lose their deposit.

Sellers should also be aware that once their home goes into pending status, it is typically no longer available for showings. If a potential buyer puts in an offer that the seller does not accept, the home typically returns to active status.

What Does Pending Mean?

When your home goes under contract, it typically enters “pending” status with the local MLS (Multiple Listing Service) and Realtor Association. Your home may appear as “pending” in the MLS/Association for a variety of reasons, but most frequently it’s simply because all parties involved have not completed their respective tasks required to make the sale official. For example:

The buyer may not have gotten a final approval from a lender to go forward with the home purchase

The seller(s) might not have had their home inspection yet

The title company may be awaiting the payoff from the seller’s previous mortgage lender. There are a million and one reasons why a deal may enter pending status, but the key takeaway is this: until all of the i’s are dotted and t’s crossed, the sale is not considered final.

The difference between active, closed, and pending in real estate

There are three main statuses a property can have in the real estate market: active, closed, and pending. Here’s a look at what each means:

Active: An active property is one that’s currently on the market and being actively marketed to potential buyers.

Closed: A closed property is one that’s been purchased by a buyer. A transaction is considered closed once the purchase is complete, all contingencies have been satisfied, and the deed has officially changed hands.

Pending: A pending property is one that’s in the process of being purchased by a buyer after having already begun marketing. When a house is “under contract” or “pending,” it means that the seller has accepted an offer from a buyer, but that there are still steps in the process that need to be completed before the sale is complete.

The terms “active,” “closed” and “pending” are used when referring to MLS listings. You can look up any property for sale or sold by using our free real estate search.

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