What Does ‘Sale Pending’ or ‘Contract Pending’ Mean?

Photo by realtor.com

“Oh no! The house I want to see is now pending. What does that mean?” We get asked this question a lot! Pending contracts can vary, depending on the contingencies in place. Thanks to this realtor.com article for helping to explain the differences.

A pending offer almost always means there is an “accepted and binding contract” between a buyer and a seller. But there are often contingencies that need to be met by either the buyer or seller for the sale of the home to close. A contingency is a clause in the contract specifying an action or requirement that must be met for the contract to become legally binding. Both the buyer and seller must agree to the terms of each contingency. Contingency clauses safeguard buyers and sellers by giving them the right to cancel a contract if the terms aren’t met. Examples of contingencies include: the ability to acquire financing, a satisfactory home inspection or home inspection repairs to be completed, a termite inspection, an appraisal, clear title, etc.

How long can a home be pending? It depends. Usually if a buyer is getting a loan, it can take the bank/lender 30-60 days, depending on the type of loan. If the buyer is paying cash, the closing could take place in a week or two. In the event the contract close date is delayed due to funding or repair issues, the pending status would continue until there’s a resolution— or the contract is terminated.

Here are some common reasons pending offers take longer to close:

-Home Inspection issues/Repairs Needed

-Financing Issues

-Missing paperwork or special loans

-Buyer cannot sell their existing home

Having a good, attentive real estate agent can make or break a pending status. Throughout the process, a good realtor will be on top of the contingencies and make sure his/her client’s wishes are being conveyed to the other realtor.