What Does "Pending" Mean?

What Does Pending Mean?

So you're looking through real estate listings on your favorite website, and you run across the perfect home - it has everything you're looking for! But there's one problem, the listing says the property is "pending." What exactly does that mean?

What does pending mean in real estate?

Pending simply means that a property has gone under contract with a buyer, but the deal hasn't closed yet. Once a buyer and seller come to terms and the contract is signed, a property goes into pending status. But, that doesn't mean the property is gone for good - there's always a chance the deal may "fall through." I see it every week, properties that were pending will suddenly come back on the market as active. There are a number of reasons a deal may fall through; the buyer's financing may fall through, a problem may have been found on the inspection, or the buyer may have simply changed their mind (in NC, a buyer has the right to terminate the contract for any reason, or for no reason).

Can I Still See A Property That Is Pending?

It depends. In our MLS there are two statuses, "Pending" and "Pending With Showings." Pending usually means the seller feels comfortable with the deal, and they no longer want to show the property. Pending With Showings means the seller is willing to continue to show the property to other prospective buyers and is usually willing to entertain a "backup offer" from another buyer.

So What Is A Backup Offer?

A backup offer can be a great tool if the home you really like is pending (under contract). You would have your agent negotiate an offer with the seller completely independent of the contract they currently have. If the current offer were to fall through, your offer would immediately become a fully ratified contract to purchase the home. Basically, it puts you next-in-line to purchase the home. If the first contract is fulfilled, then your backup offer becomes void. Typically with a backup offer, you would not give a Due Diligence Fee or Earnest Money Deposit unless your offer becomes active.

What If The Seller Isn't Open To A Backup Offer?

There's still hope! Have your agent contact the listing agent and communicate that you have a strong interest in the home, and you'd like to be notified if the sale were to fall through. Most sellers would welcome this; if their current contract were to fall through, they've lost weeks of marketing and so would be pleased to have another buyer waiting in the wings!

But I never leave it up to the listing agent. Having access to the MLS allows me to see when the due diligence date occurs for a listing, which is usually the deadline for a buyer to pull out. I'll touch base over the course of the due diligence period to see if anything has changed, and notify my buyers if the property becomes available again.

So if the house you love is pending, don't despair. Just be prepared to work a little harder for your dream home!

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