You could say that contingent deals become pending deals once the contingency or contingencies is met, but they both mean that an offer on the property has already been accepted. Like anything in real estate, pending sales are variable based on a number of factors.
Competitive market conditions can influence the likelihood of a pending sale — as can time of year, or region. According to data collected by the National Association of Realtors, pending sales are most common in the American South, and least common in the American Northeast.
Florida is known for its beaches, relaxed way of life, and balmy weather. But what many people might not realize is that this state should be known for its affordability, too. The housing market today is incredibly competitive.
Appraisal Contingencies This is a contingency that goes hand in hand with the financing contingency. Title Contingencies In real estate, titles of homes are not always free and clear. Home Sale Contingencies In a lot of cases, home buyers will make an offer on a home while in the process of selling their own house.
Reasons Why Homes Listed as Pending Fall Through If you're planning to make an offer on a house listed as pending, it's important to understand why some pending cases fall through. Financing Falls Through: Whether there's a financing contingency in place protecting the buyer, not being able to come up with the full purchase amount agreed upon will void any offer.
The reasons why a buyer might not get the funds needed are possibly a change in employment or loss of a job, a new debt collection, a change in lender conditions, etc. Financing fall throughs are the most common reasons why homes listed as pending fall-through. Property Title Issues: Liens and other legal issues on a property's title keep an offer from going through. If through a title search property title issues have been found, and over time cannot be resolved, then the offer is void.
Low Appraisal: In a buyers market when homes are in high demand but in low supply, bidding wars might ensue. A financial institute won't approve a loan for more than the market value of the house. If the buyer cannot come up with the difference, then the offer will fall-through Buyer Remorse: For most people, buying a house is the biggest purchase they'll make in their lifetime.
Sometimes buyers back out because they get cold feet. Buyer Home Sale Contingency: Because most people who are buying a home are also selling theirs at the same time, having a buyer's contingency allows them to back out if they aren't able to sell. Home Inspection Contingency: Many issues found in homes arise during the home inspection period. If the seller doesn't fix the issues, buyers with inspection contingencies can back out of the deal without losing escrow.
Other Real Estate Listing Status Meanings Hopefully, by now we've answered your question of what does pending mean in a real estate listing. It means there is an accepted offer from a buyer. However, a seller is still accepting backup offers just in case the buyer backs out for any reason. This is a term you see often with short sales and is specified in the contract as allowable. Under Contract UC : The contract has been made and signed, things are moving forward but not quite closed on.
This means that for whatever reason, the home fell out of escrow and is fully active. Expired: When a seller contacts a real estate agent to sell their house, a contract is signed between the agent and seller giving the agent a certain amount of time to list the property. After that time expires, usually due to the agent not being able to sell the house, then it will be listed as such. Sometimes this is for repairs to be made. Definitely still inquire about these properties. Withdrawn: A withdrawn status usually means that a seller changed their mind and want to keep their listed house, or they weren't able to get the money they needed.
This is another listing that doesn't hurt to inquire about. Tags: generate leads , pending listing , Real Estate , real estate basics , real estate best practices. No Comments. We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits.
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You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience. Necessary Necessary. Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information. Functional Functional. As a personal example, when I closed on an investment property last year, it still showed up as a pending status for over a week after we had formally closed on the purchase.
So if you're interested in a home that's listed as pending, it's a good idea to call the seller's agent or have your real estate agent call to find out its most up-to-date status.
One key point to know is that there's a big difference between a pending sale and a home that's sold. While pending certainly means that the seller has accepted an offer on the home, formal ownership has not yet been transferred to the buyer and no money has been transferred to the seller. In other words, a real estate transaction is yet to take place.
It can be difficult to make an offer on a home that's pending sale. For obvious reasons, most real estate purchase contracts have language that specifically prohibits the seller from canceling the agreement with the buyer if they get a higher or more desirable offer.
Having said that, contracts fall through for a variety of reasons, even at the last minute. For example, the buyer could lose their job and no longer qualify for financing. Or, the buyer could simply get cold feet and back out of the deal at the last minute. If you find a home pending a sale that you like, it's a smart idea to make your interest in the property known. In fact, the investment property I referred to in the last section was actually listed as pending when I found it, but I let the listing agent know that I was interested in submitting a full-price offer if the deal fell through.
I was already pre-approved for a mortgage , had the necessary funds to close in my account, and by doing a detailed visual check of the property during my showing, I was mostly aware of all of the property's issues that would need to be addressed.
When the original buyer ran into last-minute trouble getting financing, the deal was canceled shortly before the expected closing date. The seller's real estate agent called my agent, and I was able to make an offer on the property before it was ever re-listed on the MLS. Also, it's important to realize that while a seller generally cannot accept another offer while a home is pending sale to a buyer, the listing agent will typically still allow you to see the property.
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