What Does Pending Mean in Real EstateDo you know what pending means?
The Definition of Pending
One such term that people don't always have a complete understanding of is a pending home sale. If you don't know what pending means in real estate, you can take a look at the in-depth resource at Maximum Real Estate Exposure. Essentially a pending home sale is one in which a buyer and seller have consummated a contract.
Both the buyer and seller have mutually agreed upon the terms in an offer to purchase. The listing agent has gone ahead and marked the sale as "pending" in the multiple listing database. When a listing status is changed to pending, the feed in MLS will also be closed out sending a signal to all the major real estate sites notifying them of the status changes.
Major real estate sites such as Zillow, Realtor.com, and Trulia among others will now show the subject property as having been taken off the market. This alerts any potential buyers that the home is no longer able to be purchased.
Real Estate agents have a choice when a contract is accepted to either change the status to pending or to active contingent. When a property is designated as contingent, there are still open ended clauses in the purchase agreement that need to be satisfied.
For example, the buyer may be conducting a series of home inspections to verify the condition of the property. Another example would be getting their financing approval squared away. These are common contingencies in many real estate contracts.
Generally speaking when a home is marked as contingent, there is some doubt whether the sale will continue forward without the home coming back on the market. Sometimes an agent will still be able to show the property when it is in contingent status. Some buyers choose to submit a backup offer in the hopes the sale falls through.
When a home is marked pending there is usually far more confidence the real estate transaction will be completed. So, when you drive around various neighborhoods and see "pending sale" riders on real estate signs it means that the property is no longer available to purchase.
For more details on what you need to know about a pending sale in real estate be sure to check out the detailed article at Maximum Real Estate Exposure. It covers everything you need to know as a buyer or seller.
Real Estate statuses can be confusing at times because there are many of them. Those who don't buy and sell homes everyday often don't have an exact understanding of the meaning. These articles should help clear things up.