Word of The Week: Pending
This is a term you’ll see a lot more in the coming months. There are certain status designations that properties on the MLS (Multiple Listing Service) get filed under.
They are:
- Active
- Pending
- Expired
- Cancelled
- Sold
- Temporarily Not Available for Showings.
They’re pretty self explanatory, but it’s always the gray areas in life we seem to gloss over. So, here’s some more information on what it means for a house to be “Pending“.
When a house is an “Active” listing, that means the owners want buyers to come through the property, and hopefully make offers to buy it.
Once an offer has been made that the seller likes, they will accept the offer, at which point a few things happen. In some cases it can stay active while the buyer takes care of it’s contingencies, or it can go Temp. Not Avail. for Showings.
Only after the buyer has fulfilled and past the contingency dates does the house go from “Active” to “Pending”. This now means that the homes is sold, depending on the title search and the buyer obtaining the new loan or paying at closing.
After the settlement, or closing, the house then gets designated as “Sold”. And that sure isn’t hard to figure out, now is it?!
A couple more points about “Pending” properties. As I work with more and more young first time home buyers, I am seeing the nicer homes on the market go to “Pending” and lot faster these days. That’s mainly because a lot of buyers are finally starting to take advantage of lower prices and interest rates. But just because the home goes “Pending” doesn’t mean all hope is lost.
Something like 85% of all Pending sales close, but there is a chance that the first buyer backs out, leaving the door wide open for other backup offers to come in to the seller.
If you’re looking at houses and see one that you really like that has gone “Pending”, it’s best not to hang all your hopes on it, but don’t let your eyes off it either. Keep searching for other homes that may work, and if the home does go back to “Active” then you may be the first to capitalize on it.
Regardless of where you’re at in the process of buying your first home, make sure you’re working with the right professionals. Ask as many questions about this, or any other issues you unclear about. In Real Estate knowledge is not only power, but money saved.
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