What does pending mean in real estate?

You've found the perfect house, but there's one problem — it shows as "pending" on the listing. But fear not: If you understand what pending means in real estate, you can navigate this part of your homebuying journey with ease. 

When a house sale appears as pending, the seller has accepted an offer, and the sale is moving forward, but the transaction hasn't closed yet. However, a pending status doesn't guarantee the deal will close — which may be an opportunity for you.

What does it mean when a house is pending?

A pending house means the seller has accepted a buyer's offer, and both parties are working through the final steps to close the sale. During this time, the buyer typically secures their mortgage, orders a home inspection, and finalizes their financing. Meanwhile, the seller continues to prepare for the transfer of ownership. Most real estate platforms will show the property as "sale pending" to indicate that while the sale isn't final, it's moving forward with a committed buyer.

The real estate sale pending status can last anywhere from a few weeks to several months, depending on the complexity of the transaction and any contingencies that need to be resolved. During this time, the property typically won't accept new offers, though there are exceptions we'll explore later.

Contingent vs. pending

Contingent and pending status both indicate an accepted offer. A contingent status means the seller has accepted the buyer's offer, but specific conditions must be met before the sale can close, such as the buyer selling their home first.

A pending status usually means most or all contingencies have been satisfied, and the sale is moving toward closing. The buyer has met most conditions, with a home inspection potentially still lingering as well as some financing details. At this point, the chance of the sale falling through is lower than with a contingent offer.

Pending vs. under contract

The terms pending and under contract are often used interchangeably, but they can have slightly different meanings depending on your local market. Under contract typically refers to the period right after an offer is accepted, while pending usually indicates the sale is further along.

In some markets, under contract covers the entire period from accepted offer to closing, while pending refers to the final phase when buyers have removed most contingencies. Ask your real estate agent about local terminology since definitions vary by region.

How long can a home be pending?

Most homes remain in pending status for 30 to 45 days, though this can vary based on several factors. Cash purchases typically close faster, sometimes within a few weeks, while financed purchases take longer due to mortgage processing requirements.

Complications with financing, resolution of inspection issues, or clearing of title problems can extend the homebuying timeline. Some sales remain pending for 60 days or more, especially if the buyer uses certain loan types, such as VA or USDA loans, with additional requirements.

Market conditions also play a role. In competitive markets, buyers and sellers often work to close quickly, while in slower markets, there may be less urgency to rush through the process.

Can you make an offer on a pending house?

Yes, you can make an offer on a pending house, though your chance of success is generally low. Most pending sales are complete as planned, but a small percentage fall through, creating opportunities for backup buyers.

Making an offer on a pending home is sometimes called submitting a "backup offer." Your offer could be next if the current awaiting sale falls through. Some sellers welcome backup offers because they provide security if the primary deal fails.

Make your backup offer competitive and be ready to move quickly. If the pending sale falls through, you'll want to be prepared to complete your due diligence and move toward closing without delay. Having your financing pre-approved and being flexible on terms can make your backup offer more attractive.

How to make an offer on pending real estate

If you're interested in making an offer that’s pending in real estate, here's how to approach the process.

Reach out to the listing agent

Contact the listing agent and express your interest in submitting a backup offer. They can provide information about the current pending sale timeline and whether the seller accepts backup offers. Some sellers prefer to wait and see if their primary deal closes, while others welcome the security of having a backup.

Ask about the specific circumstances of the pending sale. Is it a cash offer or a financed purchase? Are there any known issues that might cause delays? Understanding the situation can help you position your offer for the best chance of success.

Have an offer in mind

Work with a real estate agent to prepare a competitive offer that addresses potential weaknesses in the pending sale. Consider offering cash or a larger down payment if the current buyer uses financing. If the pending sale has a long closing timeline, offer to close more quickly.

Include strong terms that make your offer appealing. If you're comfortable, consider reducing contingencies or offering to cover certain closing costs. Make your offer attractive enough that the seller would prioritize your offer if the pending sale falls through.

Be financially ready

Before making any offer, ensure you're financially prepared to move quickly. Getting pre-approved for a mortgage shows sellers you're serious and can close on time. Better makes this process simple by allowing you to get pre-approved in as little as three minutes without extensive documentation upfront. You'll answer a few questions and complete a soft credit pull to get your pre-approval letter.

Having your financing lined up means you can move fast if the pending sale falls through. While you'll need to provide additional documentation to complete the approval process, starting with Better's streamlined pre-approval can give you a competitive advantage.

...in as little as 3 minutes – no credit impact

Stay flexible and patient

Be prepared to wait and remain flexible throughout the process. The pending sale might close as planned or fall through at various stages. Stay in communication with the listing agent and be ready to move quickly if an opportunity arises.

Consider looking at other properties while you wait, as backup offers don't guarantee you'll get the house. Multiple options keep you from putting all your hopes on one pending property.

Why do some pending home sales fall through?

While most pending home sale transactions close successfully, several factors can cause deals to fall apart even after reaching pending status.

Issues with appraisal

If the home appraises for less than the purchase price, the buyer's lender may not approve the full loan amount. The buyer would need to make up the difference in cash, renegotiate the price, or walk away from the deal.

Appraisal gaps are common in competitive markets where buyers offer above the asking price. Some buyers include appraisal contingencies that allow them to cancel the contract if the home doesn't appraise for the purchase price.

Financing complications

Even pre-approved buyers can face financing issues during the pending period. Changes in employment, credit score drops, or new debt can affect loan approval. The lender also might deny the loan if the buyer doesn’t provide the required documentation on time.

Some loan types have stricter requirements that can cause delays or denials. For example, VA loans require specific property condition standards, and USDA loans have geographic restrictions that lenders might not discover until later.

Inspection discoveries

Home inspections can reveal problems that cause buyers to reconsider their purchase. Major issues like foundation problems, electrical hazards, or HVAC failures might lead buyers to negotiate repairs or cancel the contract.

While buyers and sellers can resolve many inspection issues through negotiation, some buyers walk away rather than take on repair costs or potential liability.

Buyer's remorse or changed circumstances

Sometimes, buyers simply change their minds or face unexpected life changes. Job loss, family emergencies, or finding a better property can lead buyers to cancel their pending purchase. While there may be financial penalties for canceling, some buyers decide the costs are worth it.

Take the next step in your homebuying journey

Knowing how and when to make an offer on a pending house in real estate gives you an advantage. While pending sales aren't typically available for new offers, the small percentage that fall through can create chances for prepared buyers.

If you're ready to start your homebuying journey, Better's digital platform simplifies pre-approval. With our streamlined process, you can prepare to act quickly when the right opportunity comes along, whether a fresh listing or a pending home that becomes available again.

...in as little as 3 minutes – no credit impact