If you’re in the process of buying a home, there’s no doubt you’ve seen the term “Sale Pending” or “Pending Offer” on more than a few real estate listings—perhaps even on the very home you’re trying to buy!
But what exactly does that mean? Can you make an offer on a pending home, knowing someone else is already in the running? And what is the difference between pending and contingent?
We spoke with real estate agents from coast to coast to bring you the answers.
What does ‘pending’ mean on a house sale?
The terms of a pending offer can vary quite a bit. But a pending offer almost always means there’s an “accepted and binding contract” between buyer and seller, according to real estate agent Carrie George, of Keller Williams Top of the Rockies. It means both parties have signed a contract and are ready to move forward.
However, boxes often need to be checked (on both sides) for the sale to go through. So the stage is set, but the sale is not a done deal.
“An offer is ‘pending’ because there are some items that have not yet been completed in order for the contract to close,” explains real estate agent Chantay Bridges, of Los Angeles Real Estate Now. “This can be anything from contingencies of the purchase, repairs, inspections, court approval, or reports.”
This is the point in the homebuying process where it’s crucial to have a real estate agent.
“Having a good and attentive real estate agent can actually make or break a pending status,” says Denise Supplee, an agent with Long & Foster. “Throughout the sale process, both sides of the sale have tasks to complete, and often these tasks must be conveyed by the agent.”
Why is a home listed as pending?
A home will be listed as “sale pending” so that the seller and buyer have time to work out the details. Maybe the buyer wants some repairs completed. Maybe there’s a conversation going on about seller concessions.
The important thing is that a contract is signed. From there, a pending offer can sit in limbo for months for many reasons. They could include issues like inspections, a delay with the survey, the appraisal, or even the homeowners insurance. Here are a few other issues to be aware of.
1. Repairs
“Repairs can definitely cause the pending status to stretch out for a longer period of time,” Benjamin Ross, a real estate agent with Mission Real Estate Group, says. “Most of the time, both parties are in agreement. However, there are times when hostility arises and parties seek legal counsel. During this time, the property will remain pending.”
2. Financing issues
“Pending offers can go longer than 30 to 60 days if the buyer and seller agree to a longer term due to financing issues,” says Michelle Sloan, a real estate agent with Re/Max Time in Cincinnati. “One example is if a seller is building a home and requests a longer period between contract to closing in order for them not to move twice—but the buyer would have to agree to those terms in the offer.”
3. Missing paperwork or special loans
Missing paperwork situations include title issues, “such as a missing deed or a signature on a deed from a long-lost family member,” says Chris McDermott, principal broker of McDermott Realty.
Another thing to consider is the type of financing being used, since the red tape surrounding certain types of loans can also lead to longer closing times.
“Areas where FHA, state, and local-led financing, and/or USDA loans are more prominent are likely to have longer transaction times, resulting in longer pending times,” says McDermott.
Reasons why pending-sale homes come back on the market
Pending-sale homes tend to come back on the market for several reasons. On the buyer’s side, this could include financing falling through or buyer’s remorse. On the seller’s side, there might be title issues or a low appraisal that forced the seller to pull the deal.
But one of the most common causes is a bad home inspection.
Typically, a home inspection contingency is in place in the contract. If the house needs a lot of repairs or has even bigger issues, such a structural damage, buyers are in a good position to renegotiate their offer or even walk away entirely. If the seller wants to forge ahead, their only choice may be to put it back on the market.
How long can a home be pending?
Pending offers (on average) tend to last anywhere between a week and two months, but delays do happen.
The amount of time an offer remains pending will often depend on what terms each party is trying to meet and how straightforward they are.
“There’s no hard or fast answer, but typically, if a buyer is getting a loan, the total under contract time is about 30 to 60 days,” George explains. “If a buyer is paying cash, the closing can take place in as little as a week.”
“No time limit negates a contract,” adds Ross. “The contract must be terminated, or adhered to and fulfilled (by both parties). Courts will decide legal disputes if the parties involved can’t come to a cooperative resolution, but until then—the property sits in limbo.
“In the event the contract close date is delayed for funding or repair issues, the pending status would continue until there’s a resolution—or the contract is terminated,” Ross says. “This can go on for a long time.”
Can I make an offer on a pending home?
If you’ve found your dream home and it’s listed as “pending sale,” you can still ask your agent to make an offer on the house. But fair warning: The chances of your offer being accepted are slim.
With the seller having accepted an offer, the wheels will already be in motion, despite the sale not being finalized. You could wait weeks, only to hear that the sale went through, and you will have missed out on other properties.
On the other hand, if it’s a property you love, it doesn’t hurt to make an offer. If the buyer’s loan falls through or the seller refuses to agree on concessions, you might just jump to the top of the list once the contract is voided.
The difference between pending and contingent
When a property is listed as contingent or pending, it signifies that the seller has accepted a bid and that the home is under contract. The home will first be listed as contingent after the buyer has made an offer. At this stage, certain conditions need to be met to proceed. This is where the buyer needs to ensure they have loan approval and the seller prepares for the home inspection.
Once all parties have cleared those hurdles, the property will be listed as pending, signifying that the sale is not final, but is close to being so.
