When searching for property, terms like “Active” or “Sold” are straightforward, but “Pending” signals a specific and advanced stage of the sale. This status means a seller has formally accepted an offer, and a binding contract is fully executed between the buyer and seller. The property is essentially off the active market and moving toward the final transfer of ownership.
Defining the “Pending” Status
A property is designated as “Pending” when the accepted purchase contract is moving toward the final closing date. This status indicates that nearly all, if not all, of the major contractual conditions have been satisfied or removed by the buyer and seller. The property is typically no longer available for showings or new formal offers, as the transaction is considered highly likely to be completed.
The listing agent changes the property’s status to Pending to reflect that the sale is progressing through the final administrative and financial steps. This stage reflects a high degree of confidence from both parties that the deal will close, even though the sale is not yet finalized. The listing remains in this state until the deed is officially recorded and the property is legally transferred to the new owner. This period typically takes a few weeks to a couple of months, depending on the agreed-upon closing timeline.
The Difference Between Pending and Contingent
Understanding the difference between Pending and Contingent is important. Both statuses mean the seller has accepted an offer, but they represent two distinct levels of transactional certainty and risk. A “Contingent” status signifies that the accepted offer is dependent on specific, unfulfilled conditions detailed within the contract.
These contingencies are protective clauses that allow the buyer to legally withdraw from the agreement without losing their earnest money deposit if a condition is not met. Common examples include an inspection contingency, which allows the buyer to back out if significant defects are found, or a financing contingency, which makes the sale conditional on the buyer securing a mortgage. A contingent status carries a higher risk because the deal could still fail due to an unmet condition.
The transition to a “Pending” status indicates that these contingencies have either been fully satisfied, officially waived by the buyer, or were not included in the original offer. In a pending sale, the primary hurdles have been cleared, and the contract is considered much firmer and more likely to close. The property is taken off the active market, whereas a contingent property may sometimes still be shown to potential backup buyers.
What Happens During the Pending Phase?
Once a property is listed as Pending, the focus shifts to completing the final logistical and financial requirements before closing. This period involves a series of administrative actions, often managed by the title company or escrow officer. The buyer’s lender begins the final loan underwriting process, reviewing the buyer’s financial documents to issue the “clear-to-close.”
Simultaneously, a title search is conducted to ensure the property’s title is clean and free of any undisclosed liens, claims, or encumbrances that could jeopardize the transaction. Title insurance is prepared to protect both the lender and the buyer against future title disputes. The final step is typically the buyer’s walk-through inspection, which occurs shortly before closing to confirm the property is in the agreed-upon condition and that any agreed-upon repairs have been completed. These steps must be completed within the contractual deadlines.
Can You Still Make an Offer on a Pending Home?
Although a home in the Pending status is under a fully executed contract, it is still possible to submit a formal offer. This submission is known as a “backup offer,” which is a legally binding contract the seller can choose to accept. An accepted backup offer places the submitting buyer first-in-line to purchase the home if the primary contract fails to close.
A seller may accept backup offers to secure a seamless transition if the current deal collapses, preventing the need to re-list the property. While the probability of the primary sale falling through is low once the status is Pending, a backup offer protects the seller against lost time. If the original transaction successfully closes, the backup buyer’s contract is automatically voided, and any earnest money deposited is returned.
Potential Outcomes When a Sale is Pending
The Pending status concludes in one of two ways: a successful closing or the deal failing to complete. The vast majority of pending sales ultimately proceed to closing, where the final documents are signed, funds are transferred, and the property’s deed is recorded in the buyer’s name. This outcome successfully concludes the contract for both parties.
The less frequent outcome is the sale falling through, which causes the property to return to the market. Common reasons for this failure include issues with the buyer’s financing, such as a job change or new debt causing the final loan approval to be denied. Other causes include a low appraisal, where the lender determines the property is not worth the agreed-upon price, or an issue discovered during the final walk-through.