Pending home sales have dropped by 18.7% year-over-year in 2023. That’s not all. There has been a continuous decline in pending home sales in the last 3 months within all four regions of the US. September 2023 recorded a whopping 7.1% drop.
In this blog, we will dive deep into understanding what a pending sale means and how it affects your home-buying process.
Key Takeaways
- Buyers have numerous properties to look for in recent days. Though the demand is high, the fall of 18% helps the buyers to get larger exposure to buy properties.
- 90% of buyers bought homes at a lower price than the actual market value.
- Due to a 7.1% fall in August 2023, mortgage rates have risen to 8%.
What Does Pending Mean in Real Estate?
A pending status on a house indicates that the homeowner has accepted an offer. This house is not available for showings. Pending is a stage further along than “contingent” or “under contract.”
Pending Sale vs. Contingent
- Pending means the homeowner has accepted an offer, and the deal will be closed anytime.
- A contingent sale means that home inspection and appraisal aren’t successful. The status will still be ‘active.’
What is the Difference Between Pending and Under Contract?
- Under contract means the seller has accepted an offer, but contingencies remain.
- Pending means all contingencies have been met, and the sale is in the final stages of closing.
Reasons a Pending Sale May Come Back on the Market
Below are the reasons why a pending sale house could come to the market again.
- Financing Issues – Buyers may encounter difficulties securing a loan. They may even fail to meet the lender’s requirements.
- Inspection Problems – If major issues are discovered during home inspection, buyers may choose to terminate the sale.
- Buyer’s Remorse – Buyers could get cold feet or have second thoughts about their decision to buy a house.
- Other Major Reasons – Due to a sudden change in the market conditions or if the buyer’s employment status changes unexpectedly.
Can You Make an Offer on a Pending House?
Sometimes, it is possible to make an offer on a pending house. However, it ultimately depends on the seller’s circumstances and preferences. You can consult with a real estate agent to make an offer.
How Long Does a House Stay Pending?
The pending status can vary based on transaction complexity and contingencies involved. The contingencies may include home inspections, appraisals, and other financial issues.
Some sales may close within weeks, while others take months. Market conditions and the parties’ efficiency can also influence the average time.
Bottom Line
A pending status on the house indicates that a real estate transaction is in progress and nearing closing. All contingencies have been met, and the sale is in its final stages.
However, pending sales can still fall through for various reasons. It is essential to understand the implications of a pending status and to be prepared for potential challenges.
Find Your New Home With Houzeo
With thousands of property listings, Houzeo.com is one of the biggest property listing sites in the US. Find condos, townhouses, co-ops, and other types of homes for sale on Houzeo.
» NEED MORE CLARITY? Read these exclusive Houzeo reviews and learn why the platform is the best in America’s competitive housing market.
Frequently Asked Questions
Why do houses stay pending for so long?
Houses can remain pending for an extended period due to various factors like inspection or financing issues. Legal procedures, paperwork, or title issues may also contribute to the delay.
Can you make a higher offer on a pending house?
Yes, making a higher offer on a pending house is possible. However, remember that the seller is not obligated to accept or respond to your request.
At what point does an offer become a contract?
An offer becomes a contract once both parties have agreed on all terms and have signed the purchase agreement. It may then be marked as "pending" until all contingencies such as home inspections, home appraisals, and financing are met.
Is it better to be contingent or pending?
If the status is contingent, then you can make a successful offer. However, consulting with a real estate agent or attorney is recommended to understand the implications better.
