What does pending mean in real estate

The status of a property that is under contract but has not yet completed the transaction is referred to as “pending” in the real estate industry. When a property is listed as “pending,” it indicates that the buyer’s offer has been accepted by the seller, and the transaction is currently being completed. But before the property officially changes hands, a few requirements or contingencies might need to be satisfied. The sale is not yet final.

A property may be listed as pending for the following common reasons:

Home Inspection

    To make sure the property is in good shape, the buyer can be doing a house inspection. If problems are found, talks to resolve them might occur.

    Financing Contingencies

    The buyer may be obtaining finance for the purchase, and the loan approval process can take some time to complete, hence the pending status.

    Appraisal

    To make sure the property’s worth corresponds with the agreed-upon sale price, the lender usually requests an appraisal.

    Title Search

    To ensure that there are no liens or other encumbrances on the property, the title firm does a title search.

    Contingencies

    There can be other stipulations in the purchase agreement that need to be fulfilled, such the buyer selling their existing house or making certain repairs.

    The transaction goes from "pending" to "closed," and the property legally changes hands, once all requirements are achieved and the contingencies are met. To guarantee a seamless transaction, it's critical for both buyers and sellers to collaborate closely with their real estate brokers and adhere to the predetermined timeframe.

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