Question Of the Hour: What Does Pending Mean In Real Estate?

Getting a new home can be a huge deal for a person, whether it is a manufactured home or not. Then again, as a first timer, things can feel too much, especially the jargon. The real estate industry is already a very niche topic. Therefore, some guidance is what new buyers need. 

One of the jargons that people often point out is the term pending. Many new buyers have experienced a scenario where they find a great property. The house looks like their dream house. The pricing feels in budget, and it is near where they work. However, they are listed as pending.  

So, what does pending mean in real estate? This article will help you understand that from scratch. Therefore, follow along to know more.  

What Does Pending Mean In Real Estate? 

Looking at the term in all its black and white essence, it means that a property is off the market. However, there are other aspects as well. Things that are equally important and need addressing.  

If you ask any real estate expert, ‘What does pending mean in real estate?’ They will say that the buyer and seller have reached a point of agreement. This means that all the aforementioned contingencies have been accepted and are at rest.  

However, there is a catch. A property with pending status generally means that the property has not been sold yet. The process might be well underway, but there can be some intervention.  

In such cases, a buyer can bid their price on a pending property even though it is highly likely that the bid will be accepted. However, some awaiting property deals fall through and don’t amount to anything. Your bid will be considered in such cases.   

Common Pending Statuses 

To truly understand the question, “What does pending mean in real estate?” you need to understand the different types of pending status that exist in the world of real estate. In true essence, the pending status is issued when a home is already sold, but some legalities are still left. 

Real estate agents generally tend to issue the pending status of a property. Therefore, in most cases, the agent is the person who has the final say on the issue.  

#1 Pending taking back-ups 

In such cases, the real estate agent accepts that the property purchase is well underway. The contract has been drawn. Therefore, the sale is in its mature stage, with only a few legalities left to sort through. Still, the agent is taking in backup offers if a sale falls through. 

This is generally common in places with high property values. In case a sale fails through, the real estate agent can easily go for the next best offer and get a better price.  

#2 Pending short sale 

Pending short sale suggests that the sale is reaching its final stages. This means that the real estate agent is highly unlikely to it will entertain any other offer. Still, the window is not yet closed, and there is room for counteroffers. Therefore, you can still shoot your shot if something comes out of it.   

#3 Pending More Than Four Months 

The name of the variant is what it actually means. In such cases, the sale has been in a fugue state for around four months. Therefore, it is highly likely that the seller or the agent is accepting newer offers.  

However, in some cases, an agent can simply forget to de-list the house after selling. Therefore, please enquire with the agent who was overseeing the deal. Whether a property is actually in the pending status or if there has been a human error.  

#4 No-Show Pending 

This suggests that the seller is no longer showing the property. This means that the seller and the buyers are confident about the deal. As a result, the agent has been asked to block the property from further tours and showings.  

In most cases, No-show pendings are absolute. This means the seller will not be entertaining any offer. Therefore, if you do encounter a No-show pending, then it is highly likely that the property is as good as being sold, and there is no point hankering.  

Why Are They Listed As Pending? 

Now that you know what does pending mean in real estate, you must also understand the causes that lead to the status. Here are some of the leading reasons behind the status. Here we go! 

• Cannot secure proper financing due to authorization or similar problems.  

• Home inspections have raised structural issues. 

• The buyer is not happy with the purchase and wants to back out of it. 

• A lower appraisal value is making the buyer experience cold feet.   

• The deal is experiencing some name transfer issues.  

Contingent v/s Pending Offers 

Pending status is closely related to another popular and familiar real estate status. This is called the contingent offers. Many claim that both of these terms are similar, but they are not. They are wildly different and must be understood carefully.  

Contingent status suggests that the sale is through, but some pointers are yet to be addressed by the sellers. This is why the sale is not finalized. However, a pending status means that all contingencies have been met, and only the escrow process remains.   

In both cases, the sale might swing in either direction. Therefore, having a sense of clarity on what does pending mean in real estate or what does contingency means in real estate is important.  

Can You Offer On A Pending House? 

What does pending mean in real estate? It means that the sale is not yt finalised. Therefore, you can offer on a house on a pending house.

However, do not do it blindly or like a fool. Have a clear understanding of what the right means to do it.  

We have already discussed the different forms of pending variants. Therefore, please understand those opponents before making any offer. There is no point in wasting your time if it does not entail any results.