What does pending mean in real estate?
So, you have seen a good house across the street with a sign “sale pending.” What does this sign mean? Is the house sold? Can you buy a house with a ‘sale pending’ sign?
I know that you have all these questions. If yes, then go through these articles. In this article, I have explained what a pending notification on the house for sale really means.
What Does Pending Mean On A House?
Both the contingent and the pending status on the house for sale have two different meanings. The contingent status means that the seller has accepted the buyer’s request to sell a house, but they still have to meet some requirements.
But, if a buyer/ prospective buyer sees a pending status instead, then it means the contingencies are sorted, and both parties have signed the contract. Next, they only have to move through the phases of escrow to complete the deal.
However… this does not mean the house has been sold yet. Even though the contingent is out of the way and the house is pending sale, you can still put your bidding. But the chance of the seller considering your offer is meager when the bidding is. You might have a chance at buying the house only if the current sale does not work out.
Usually, when a seller agrees to the offer made by a buyer, they sign a contract not to cancel the deal upon coming across a better offer during the process. You will only want to bid on a house with pending sale status when looking for houses in a competitive market. This also happens when you come across your dream house.
However, if you are bidding on a house with a pending sale status, make an attractive offer. This way, if the sale falls through, the buyer might consider your offer as their potential backup.
Should You Bid On Properties With ‘Sale Pending’ Status?
It is up to you whether you should bid on a house with a ‘sale pending’ status. Since the seller has entered into the contract and signed it, there is a high chance of you not getting the property.
On the other hand, you should already have a few things in place, considering the fact that the seller ‘might’ approve your bidding.
- Before you bid on a property with ‘sale pending’ status, start your mortgage approval process. This will give you the opportunity to stay ahead by one step before the initial approval and getting it verified.
- Also, when the seller has just faced a sales fall through on their property, they will find your level of financial scrutiny appealing. This will work as a plus point during your buying process.
Why Does A Seller List A House As Pending?
I assume that you have found the answer to the question – what does pending mean in real estate? But why does a seller list the house under pending status?
There is a list called the Multiple Listing Services (MLS). The list contains all the properties ready for sale in a particular geographical area. When any homeowner puts their house for sale, they list their property in the MLS.
The house for sale usually has an active status. As the property moves through the sales process, it will keep changing its statuses from ‘contingent,’ ‘pending,’ and ‘sold.’ During the selling process, the homeowner can expect the house to go through ‘contingent’ and then ‘pending’ statuses.
When the house has a pending status, it means that the contingent issues are resolved, and they have signed a contract to complete the sale. The owner lists the house to convey to potential buyers that the house is a movie through the sales process. But the sale can also fall through.
How To Bid On A House With A ‘sale Pending’ Status?
Since you know the answer to ‘what does pending mean in real estate,’ you might also want to make your bidding. You can choose to do it through the three steps mentioned here.
Contract The Listing Agent
Even if the seller has put a pending status, they still might accept offers from potential buyers. You can ask your real estate agent to check whether the seller is accepting offers during the sales process or not. Also, do check whether they have added a kick-out clause in the contract.
Make A Draft Of Your Offers
If your real estate agent reports that the seller is still taking offers, you should make a draft of what you want to offer for the property. If the deal goes through, you will probably not hear anything from them. But, in case the deal falls through, you will hear from the listing agent.
Prepare Your Financing
Before you put an offer on a pending house, you should get initial approval for the mortgage. But, if you already have the approval, the seller will think that you are serious about the purchase and will proceed with the sale. If you are competing with other potential buyers on the house with a pending status, you can stand apart by including the approval letter from the lenders.
How Long Does A Home Sale Stay Pending?
The pending status and how long it stays on depends on the buyer and the seller. There is no rule about how long they can keep the pending status on the house. Usually, homes on sale have a pending status for 30 to 60 days. If the buyer pays in cash, they may close the deal on the house sooner than 30 or 60 days.
So, what does pending mean in real estate? This article has provided the answer to your query. Pending is the status on a property on sale that comes after the contingent status is removed. If you are planning to bid on any house with pending status, be prepared with the tips provided here. But, you should know that the chances of getting any answer from the seller at this point are meager.
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