Reviewed by: Brandon Brown

Understanding “Pending” in Real Estate

If you’ve been searching for a home and come across a listing marked as “pending,” you might be wondering what it actually means. In real estate, a “pending” status means that the seller has accepted an offer and all requirements have been met. While the sale isn’t final just yet, it’s in the final stages of closing. At this point, the home sale is moving forward, but a few final steps—like signing paperwork and transferring ownership—still need to happen. Although most pending sales make it to closing, some deals fall through due to financing issues, low appraisals, or unexpected home inspection problems. If you’re a buyer interested in a pending home, you may still have options—some sellers accept backup offers just in case the deal doesn’t go through.

Pending vs. Contingent – What’s the Difference?

A lot of people confuse contingent or under contract vs. pending, but they actually mean two different things in the home buying process:

• Contingent – The home is under contract, but certain conditions still need to be met before the sale moves forward. These might include a home inspection, financing approval, or the buyer selling their current house. If one of these conditions isn’t met, the deal could be canceled.
• Pending – All contingencies have been cleared, and the seller has accepted the offer. Now, it’s just a matter of finalizing paperwork and completing the transaction.

Once a home is pending, it’s much closer to closing than a contingent property, but it’s still not completely sold.

How Long Does a Home Stay Pending?

On average, a home stays pending for about 30 to 60 days. However, this depends on several factors, including the type of financing being used and the overall market conditions.

• Cash sales typically close much faster, sometimes within two weeks, since there’s no mortgage approval process involved.
• Sales involving a mortgage take longer because the buyer has to go through the loan approval process, which includes a home appraisal and final underwriting.
• If any delays arise, such as issues with paperwork, inspections, or financing, the pending period can stretch beyond 60 days.
• Market fluctuations also play a role—when the market is hot, sales tend to close faster, while in slower markets, they can take longer due to additional negotiations or financing hurdles.

Why Do Pending Sales Fall Through?

While most pending sales make it to closing, some deals fall apart before they’re finalized. Here are the most common reasons a pending sale might not go through:

Buyer Financing Issues

Even if a buyer is pre-approved for a mortgage, final loan approval can sometimes fall through. If the lender determines that the buyer’s financial situation has changed or that they no longer qualify, the deal could be canceled.

Low Appraisal

A home appraisal determines the property’s value, and if it comes in lower than expected, the buyer’s lender may refuse to approve the mortgage for the full purchase price. In this case, the buyer would need to cover the difference in cash, renegotiate the purchase price, or walk away from the deal.

Inspection Problems

If a home inspection uncovers major issues—such as structural problems, plumbing concerns, or roof damage—the buyer may back out if the seller isn’t willing to make repairs.

Buyer’s Remorse

Sometimes, a buyer gets cold feet. Whether it’s due to financial concerns, a change of heart, or just finding another home, buyers can decide to walk away from a deal even after their offer is accepted.

Title Issues

If a home has title issues, such as outstanding liens, boundary disputes, or previous ownership complications, it can cause major delays or even force a pending sale to be canceled.

What Happens After a Home Goes Pending?

Once a home goes into pending status, here’s what happens before the sale closes:

1. Final mortgage approval – The lender verifies all financial details.
2. Title search – Ensures no legal claims exist on the property.
3. Final walkthrough – The buyer inspects the property one last time.
4. Closing disclosure review – The buyer reviews final loan details.
5. Sign closing documents – Once everything is confirmed, both parties sign.

What Are the Risks of a Pending Sale for Buyers and Sellers?

Risks for Buyers

• Losing earnest money if they withdraw without a contingency in place.
• Delays in closing, which can affect moving plans or mortgage rate locks.

Risks for Sellers

• Buyer’s financing falling through, forcing the home back on the market.
• Extended closing periods leading to additional carrying costs (mortgage, taxes, utilities).

How to Mitigate Risks

• Buyers: Work with a lender with a strong track record, avoid major financial changes during the process, and ensure contingencies protect your deposit.
• Sellers: Pre-screen buyers for financing strength, conduct pre-inspections, and clear title issues early.

The Impact of Market Conditions on Pending Sales

• In a seller’s market, homes go pending quickly, and buyers are more likely to waive contingencies to speed up the process.
• In a buyer’s market, pending sales may take longer as buyers negotiate terms and take more time with inspections.

Can You Make an Offer on a Pending Home?

Yes, but it depends on the seller. Most pending homes are already under contract, which means the seller is legally bound to move forward with the buyer’s offer unless the deal falls apart. However, some sellers allow backup offers. A backup offer means that if the current buyer backs out for any reason, the seller already has another interested buyer lined up. If you really love a pending home, you can ask your real estate agent to reach out and see if the seller accepts backup offers.

Different Types of Pending Statuses

Not all pending sales are the same. Some properties may have specific labels to indicate their status:

• Pending – Taking Backups – The seller is still accepting backup offers in case the primary deal falls through.
• Pending – Short Sale – The property is in a short sale process, meaning the lender must approve the transaction, which can delay closing.
• Pending – More Than 4 Months – The sale pending has been delayed due to legal or financial issues.

Understanding these different pending statuses can help buyers and sellers navigate the home sale process more effectively.

The Role of Earnest Money in Pending Sales

When a buyer submits an offer, they often include earnest money, which is a deposit showing they’re serious about purchasing the home. This money is held in escrow until closing.

• If the sale closes, the earnest money is applied toward the down payment or closing costs.
• If the buyer cancels the contract without a valid reason, the seller may be allowed to keep the deposit.

This system ensures that both parties are committed to the real estate transaction.

What Should Buyers Do While Waiting for a Pending Sale to Close?

• Continue searching for backup options in case the deal falls through.
• Prepare for closing by finalizing financing, securing homeowner’s insurance, and setting up inspections.
• Avoid jeopardizing financing by not taking on new debt, changing jobs, or making large purchases.

How Common Are Backup Offers and Should Buyers Consider Making One?

• Roughly 20-25% of pending sales don’t close, making backup offers worthwhile.
• A strong backup offer should match or exceed the current offer in price and terms.
• Sellers often prefer to move forward with the first buyer, but a well-structured backup offer ensures the buyer is next in line.

What Pending Means for Buyers and Sellers

For buyers, a pending status means the home is off the market, but there’s still a small chance the deal could fall through. If you’re really interested in a pending home, consider submitting a backup offer just in case. For sellers, reaching the pending stage means you’re in the home stretch of the sale process. However, it’s important to stay prepared in case any last-minute issues arise, like financing delays or inspection concerns.

Need to Sell Your Home Without the Wait?

If you want to skip the waiting game and avoid the stress of contingencies, appraisals, and buyer financing issues, FlipSplit offers a fast, hassle-free way to sell your home. With a cash offer, you can close quickly—no waiting, no uncertainty, just a straightforward sale on your timeline. Looking for a hassle-free home sale? Get a no-obligation cash offer from FlipSplit today!

Reviewed by: Brandon Brown

As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.