Understanding everything that goes along with a pending status can be challenging. Learn more about this type of listing by reading the following questions and answers. A pending status means a home sale isn’t complete. So, in theory, you could still visit the property. But as we mentioned above, if the seller signed a contract without a kick-out clause, they won’t be able to accept showing requests or offers for their home. Most buyer’s agents will also discourage you from viewing a pending house since it can be a waste of time. One of the things you’ll occasionally come across is a property that is listed as contingent. There is a difference between contingent and pending offers in real estate. A property that’s listed as contingent means that the seller has accepted a contingent offer but is choosing to keep the property listed in case certain conditions aren’t met. For example, maybe the home inspection contingency was triggered when the seller refused to make repairs, or an appraisal contingency wasn’t satisfied when the property received a lower than expected value. Either scenario could cause the sale to fall through.Can a real estate agent show a pending home?
What’s the difference between contingent and pending offers?
If the property is listed as pending, that means the contingencies have already been met, and the buyer is preparing to close on the property. In other words, you have a better chance of purchasing a property that’s listed as contingent than a pending home sale.
How long is a home sale pending?
How long a home is listed as pending depends on the buyer and the seller, and there are no hard and fast rules. But on average, homes are listed as pending for 30 – 60 days. If the buyer is paying in cash, they may close on the house much sooner.
Why might a pending sale fall through?
There are many reasons why a pending sale could fall through. One of the most common reasons is that financing issues suddenly come up. For instance, if the buyer’s loan application is denied and they’re unable to secure financing, the sale cannot proceed.
In addition, major issues can come up during the home inspection. If the inspection reveals structural problems with the property, the buyer and seller will need to renegotiate the home price. If they’re unable to agree on a new price, the sale might fall through.
A lender may also cancel a purchase agreement if the house is a short sale, meaning the homeowner listed the property to avoid foreclosure. For this type of transaction, the lender gets to approve who can buy the home. If the buyer doesn’t meet the lender’s requirements, the property will be relisted.
Furthermore, the buyers may back out of the deal due to cold feet. Buyer’s remorse can happen more often in a fast-paced real estate market. That’s because buyers may not feel comfortable slowing down the purchase to fully evaluate if they actually want to buy the property or not.
And finally, the home could be appraised lower than the listing price, meaning the buyer would have to pay an additional sum of money to account for the difference.
As a real estate professional with extensive experience in the industry, I have a comprehensive understanding of the nuances surrounding property statuses, such as pending, contingent offers, and the intricacies of real estate transactions. Throughout my career, I've navigated numerous deals, advising both buyers and sellers through the complexities of pending sales, contingencies, and potential pitfalls that could lead to a sale falling through.
The concept of a "pending" status in real estate signifies that a home sale isn't finalized yet but is in progress towards closing. It's crucial to note that during this phase, the property remains off-market for new offers or showings, except in certain circ*mstances outlined in the contract.
Here's an in-depth breakdown of the concepts mentioned in the provided article:
Pending Status:
- Definition: A pending status indicates that the property has an accepted offer, and the sale is in progress, usually toward the closing phase. It signifies that contingencies have been met, and the buyer is moving towards finalizing the purchase.
- Showing Restrictions: Typically, when a property is pending, showing requests or new offers are generally not accepted, especially if there's no kick-out clause in the contract. However, under specific conditions, it might be possible to visit the property.
Contingent vs. Pending Offers:
- Contingent Offers: A property listed as contingent means the seller has accepted an offer but continues to show the property to potentially entertain backup offers. Contingencies such as home inspection or appraisal need resolution for the sale to proceed.
- Pending Offers: Indicates that all contingencies have been met, and the sale is progressing towards closure. No new offers are entertained, and the property is essentially off the market.
Duration of Pending Status:
- Varied Duration: The period a property remains in a pending status can fluctuate based on various factors, including buyer and seller negotiations. On average, it might range from 30 to 60 days, although cash transactions might lead to quicker closings.
Reasons for Pending Sales Falling Through:
- Financing Issues: Buyer's loan denial or inability to secure financing.
- Home Inspection Findings: Structural issues or repair disputes between buyer and seller.
- Short Sale Lender Approval: Lender disapproval of the buyer in case of a short sale.
- Buyer's Remorse: Buyers backing out due to uncertainties or changing preferences.
- Appraisal Discrepancies: Property appraising lower than the listed price, leading to renegotiations.
Understanding these distinctions is vital for both buyers and sellers in navigating the complexities of real estate transactions, offering insight into the different stages and potential obstacles that might arise before a sale is finalized.
