Everything You Need to Know About a Pending Home Sale

 

Everything You Need to Know About a Pending Home Sale

Here's what buyers, sellers and interested parties should do while a real estate deal is pending.

By Devon Thorsby, Editor, Real Estate |April 23, 2020, at 10:50 a.m.

 (Getty Images)

Few home sales fall through once they reach pending status, but that doesn't mean all parties don't have plenty of work to complete before closing day.

Few moments are as exciting for home sellers and homebuyers as when a “sold” badge is added to the For Sale sign in front of your property. But when you drive through neighborhoods, especially as you’re house hunting, you may see the occasional “sale pending” badge posted instead.

So what does it mean when a home sale is pending?

A pending home sale takes place after the seller has accepted an offer and the contract between both parties has been signed. When a home sale is pending, it is no longer considered an active listing on the local multiple listing service, which is where agents provide information on available properties. Public sites for marketing properties, including Zillow, Trulia and Redfin, also pull listing information from the local MLS. When a property is taken off the market on the MLS, its availability is also removed from those websites.

When a deal is considered pending may vary depending on where you live. In some cases, pending could include the due diligence period, where the property undergoes an inspection and a public record check is done to make sure there are no legal issues. In other markets, the pending phase could start after the due diligence phase. Hiccups or surprises during the pending period could require new negotiations or dismantle the deal, so the buyer, seller and their real estate agents must work to make sure the deal closes successfully.