Finding your dream home online can be exciting. You’ve searched through countless listings, and finally, there it is – the perfect house in the ideal location, with all the features you desire, and within your budget. But then you see it: the dreaded “pending” status. This can be disheartening, leaving you wondering, “What Does Pending Mean In Real Estate?” and is it still possible to make it yours? The good news is, a pending sale doesn’t necessarily mean it’s too late. There’s still a chance for determined buyers.
Decoding “Pending” in Real Estate Listings
In real estate, “pending” signifies that the seller has accepted an offer from a buyer, but the sale is not yet finalized. Think of it as being in the waiting room of homeownership. This status is applied as soon as a purchase agreement, or contract, is signed by both parties. It’s crucial to understand that “pending” is distinct from “contingent.” While both indicate the property isn’t actively on the market, “contingent” usually implies there are specific conditions that must be met before the sale can proceed, such as buyer financing or home inspections. “Pending” generally suggests these contingencies have been resolved or waived, and the transaction is moving closer to completion.
However, “pending” doesn’t equate to “sold.” As real estate expert Joy Triglia, Broker and CEO of Century 21 Universal Luxury, points out, “‘Pending’ does not mean ‘sold.'” Until the closing process is complete and the property officially changes hands, there remains an opportunity for another buyer to step in, especially if the initial deal encounters hurdles. These hurdles can include issues arising from the home inspection, where significant problems might be uncovered, or if the buyer’s financing falls through, preventing them from securing the necessary mortgage.
This potential for deals to falter, particularly in competitive real estate markets, means hope isn’t lost when you see a “pending” status. Sellers often aim to secure the most favorable offer, and there’s a chance your offer could be the one that ultimately wins. Here’s how you can increase your chances of purchasing a home that is currently pending sale:
Strategies to Pursue a Pending Real Estate Listing
Even though a property is marked as “pending,” proactive buyers can still improve their odds of making it their own. Here are four key strategies to consider:
1. Express Your Interest Proactively
Don’t assume that inquiring about a pending home is a waste of time. Many listing agents continue to show the property and entertain backup offers even after it goes pending. Gary Malin, President of Citi Habitats in New York City, notes, “Many seller’s agents will continue to show the property to potential buyers up until the very last minute, in hopes of obtaining an even more compelling offer.”
Alt text: Real estate sign indicating “For Sale” in front of a suburban house, illustrating property listing status.
Make sure your real estate agent is aware of your strong interest in the property. You want to be at the forefront if the initial deal falls apart due to financing issues, unsatisfactory inspections, or unmet contingencies. Remember, as Malin emphasizes, “Until the ink dries on the contract, no transaction is legally binding.” Your expressed interest ensures you are considered if the situation changes.
2. Gather Information and Do Your Homework
Contact the listing agent to gain insights into the current pending offer. They might provide clues about the strength of the contract. Try to determine if there are any weak points or contingencies that could cause the deal to collapse. Understanding the number of other offers and any potential concerns with the existing bid can give you an advantage in crafting your own potential offer.
Malin advises, “You need to get on the listing agent’s radar screen—and stay there.” If the closing deadline passes without a sale, prompt action is crucial. Beyond speaking with the agent, conduct your own research. Drive through the neighborhood to assess the community and the surrounding area. Research the property address online to access property tax records and other public information. This research makes you a more informed and prepared buyer. Becoming well-versed in the property details positions you as a serious backup option should the initial sale fail.
3. Explore Negotiation and Sweeten Your Offer
Consider ways to make your offer more appealing to the seller. While increasing your bid price is one option, it’s not the only approach. If you are financially able, offering above the asking price can certainly strengthen your position. However, you can also negotiate favorable terms that appeal to the seller’s needs. This might include waiving certain contingencies, such as a mortgage contingency (if you are comfortable with this risk and have secure financing), offering to cover some or all of the closing costs, or providing flexibility with moving dates to accommodate the seller’s timeline.
Alt text: Image depicting a real estate transaction with two individuals shaking hands, signifying agreement on a property deal.
Flexibility and a willingness to negotiate are highly valuable. As Malin points out, “It helps make the case that you are serious about the property. Your goal is to convey a sense of urgency to the current owner and make your offer, quite simply, hard to refuse.” By presenting attractive terms, you differentiate yourself from other potential buyers and demonstrate your commitment.
4. Be Persistent and Ready to Act
Adopt a proactive and persistent approach. Be readily available to answer calls, check emails promptly, and maintain frequent communication with your real estate agent. If the initial sale encounters difficulties, your responsiveness and eagerness can make a significant difference.
Malin suggests, “If the seller has a sense the competing would-be buyer is dragging their feet—or has any other seeds of doubt about their offer—this aggressive approach may end up tipping the scale in your favor.” Your proactive communication and readiness to move quickly can reassure the seller that you are a reliable and motivated buyer, making your backup offer a more attractive alternative.
Don’t Lose Heart with a “Pending” Status
Seeing “pending” on your dream home listing doesn’t have to be a deal-breaker. While it indicates another buyer is currently under contract, it doesn’t guarantee a completed sale. By understanding what “pending” means in real estate and employing these strategies, you can significantly increase your chances of turning a pending listing into your new home. Be prepared to act diligently and persistently, and your dream home might just become a reality.
