What Does ‘Sale Pending’ Mean in Real Estate?
‘Sale Pending’ indicates a real estate transaction where a contract has been signed but is yet to close. This means that the buyer and seller have agreed on terms, but the transaction has not been finalized.
Importance of Multiple Listing Services (MLS)
Brokers who are members of Multiple Listing Services (MLS) can report a sale as ‘pending’ once a contract is inked. However, it’s crucial to note that these transactions aren’t formally counted as sales until they’ve reached closure.
Predictive Value of Sale Pending
A ‘sale pending’ statistic is also a useful indicator that can predict closed sales, usually one to two months down the track. While not all pending sales result in closure, a large percentage do, making it a helpful forecasting tool for market trends.
Common Scenarios
Example 1: Predictive Measures
Consider a real estate agent who monitors market trends. They note a high number of sale pending listings. This observation helps them predict an upsurge in closed sales in upcoming months.
Example 2: Buyer & Seller Perspective
For buyers, a ‘sale pending’ tag means there may still be an opportunity if the current contract falls through. For sellers, it indicates promising progress but reminds them that the deal isn’t done until the closing date arrives.
Backup Contracts
In case the primary contract fails to close, backup contracts come into play. These secondary agreements are kept on standby, providing a safety net and ensuring a smoother re-transition should hiccups occur.
Frequently Asked Questions
What is the difference between ‘sale pending’ and ‘under contract’?
While both indicate that an agreement has been reached, ‘sale pending’ generally means that all contingencies have been addressed, whereas ‘under contract’ may still involve some outstanding contingencies.
Can you still make an offer on a home listed as ‘sale pending’?
It varies by market, but generally, you can submit a backup offer, which might be considered if the current deal falls through.
Are sale pending listings included in official sales statistics?
No, they are not included until the transaction is formally closed.
What happens if a pending sale falls through?
The property typically goes back on the market, or a backup offer gets activated.
Do all sale pending transactions result in closed sales?
Not all, but a substantial majority do. Those that don’t close usually encounter issues like financing problems, inspection woes, or buyer’s remorse.
Related Terms: Pending Home Sales, Real Estate Listing, Contract-to-Close, Contingent, Backup Offer.
