What Does Pending Mean In Real Estate?
You are scrolling past home for sale on your favorite real estate app and you spot 'the' home. Everything about this home for sale is perfect, except it has a status of 'PENDING' in bold letters at the top of the page. That sounds fairly ominous and your heart sinks. Is the home still available or is it sold? We will answer that question as well as many others as we dive into the mysterious 'sale pending' status in Texas real estate.
The Definition of Sale Pending
In Texas real estate, as in many other places, a "sale pending" status indicates that a property has an accepted offer from a buyer and is currently in the process of moving towards closing. However, it's important to note that the specific implications and details can vary based on local real estate practices and regulations.
Here's what "sale pending" typically means:
- Accepted Offer - When a property is marked as "sale pending," it means that the seller has accepted an offer from a buyer. The offer could be contingent on various factors such as inspections, financing, and other terms that need to be satisfied before the sale is finalized.
- In-Progress - The property is now in a phase where both parties are working through the necessary steps to move towards closing the sale. This can include activities like inspections, appraisals, and securing financing.
- Off the Market - Generally, when a property is marked as "sale pending," it's considered off the market for new offers. However, in some cases, if the current deal falls through, the property might become available again.
- Timeframe - The time it takes for a "sale pending" property to move to the "sold" status can vary widely. It depends on factors such as the complexity of the deal, the speed of inspections and appraisals, the efficiency of communication between parties, and more.
- Potential Risks - For buyers, it's important to note that even though a property is marked as "sale pending," there is still a chance that the deal might not close. Deals can fall through due to various reasons, such as issues with inspections, financing challenges, or disagreements over repairs.
- Backup Offers - Some sellers and agents might continue to accept backup offers even after a property is marked as "sale pending." This means that if the current deal falls through, they have another interested party ready to step in.
Frequently Asked Questions (FAQ)
Ok, no you understand some basics about a home marked as 'pending'. Now let's delve deeper into some questions you might still have about a home marked as 'pending'.
Can we still go see a home marked as pending?
Yes, typically the listing agent and sellers will allow showings on the subject property in case the contract fails to close. In many cases, they will solicit or accept a backup offer.
Why would a pending home not close and come back on the market?
Most homes do close in the state of Texas, but some do not. The buyers are usually the cause of a home not closing. The buyers can have many reasons to back out of the contract or in some cases breach the contract. Just a few examples are:
- job change
- financial hardship
- buyers remorse
- life change, i.e. family illness, divorce or tragedy
Why is the pending home still listed and not just removed from the MLS?
Taking the home off the MLS could reduce the likelihood of attracting multiple offers. It's not advisable to act hastily and remove the listing solely based on one agent presenting an offer.
Can we get a better deal as a backup offer?
Thats a hard question to answer, since each transaction is unique. Typically the answer is no, you won't get a better deal. Backup offers typically occur in a hot sellers market where demand is high and supply is low. The backup offer locks the buyers into the purchase of the home exactly like a primary contract does. You are better off waiting for the home to fall out of contract and then make your offer if a 'good deal' is your primary concern. Keep in mind, you might lose the home by waiting.
How long will a home be marked pending before it is sold or back on the market?
That timeframe is truly an unknown. We are dealing with a contract that has terms only the involved parties know. We have potential external variable and human emotions. We have the results of an inspection, mortgage and apprasal that all can have an impact. Sadly, you must watch and wait to to see what happens with this transaction.
Should we pursue a 'pending' home or move on?
That is a personal decision for you and your family. Many families have tried and failed to aquire a pending home, but a few lucky buyers have succeeded in aquiring their dream home by putting in a backup offer on a pending home. We here at LivingWell Realty wish you the best of luck and stand ready to help you if you need representation.