Why do pending home sales fall through?

You've found the perfect house - right neighborhood, ideal layout, fits your budget - but there's one word standing between you and your dream home: "pending." That single status label can feel like a locked door, leaving you wondering if you've lost your chance or if there's still hope.

In real estate, "pending" means a seller has accepted a buyer's offer and signed a purchase agreement, but the transaction hasn't closed yet. The home is essentially off the market, moving through final inspections, appraisals, and paperwork before ownership officially transfers.

Here's what pending status really means for buyers and sellers, how long homes typically stay pending, why some deals fall through, and what you can do if the home you want shows that frustrating pending label.

What does pending mean in real estate?

When a home shows "pending" status, the seller has accepted a buyer's offer and both parties have signed a purchase agreement - but the transaction hasn't closed yet. The property is essentially off the market during this final stage, though it still appears on listing sites like Zillow and Realtor.com with a pending label. Think of pending as the last mile before the finish line: both parties are committed to the deal and working through final steps like inspections, appraisals, and paperwork before ownership officially transfers at closing.

Pending status signals the home is no longer available for new offers in most cases. Unlike homes marked "active" or "contingent," pending properties have cleared major hurdles and are moving toward a completed sale.

Why homes go pending

A home transitions to pending once the buyer and seller sign a purchase agreement and all major contingencies have been satisfied or removed. This typically happens after the home inspection is complete, the appraisal comes back acceptable, and the buyer's financing is approved. At this point, the listing agent updates the home's status from "active" or "contingent" to "pending" in the Multiple Listing Service (MLS) - the database real estate professionals use to share property information.

The pending period represents the final administrative phase. During these weeks, the title company researches ownership records, the lender prepares closing documents, and both parties coordinate the transfer of funds and keys.

Pending vs. under contract vs. contingent

These three terms often cause confusion because they describe overlapping stages of a home sale. Here's how they differ:

Understanding pending status

Pending means the deal has progressed beyond contingencies and both parties are preparing for closing. The buyer's financing is approved, the inspection didn't reveal deal-breaking issues, and the appraisal met or exceeded the sale price.

Understanding contingent status

Contingent status means the seller accepted an offer, but certain conditions still need to be met before the sale can proceed. Common contingencies include home inspection approval, appraisal meeting the purchase price, and the buyer securing mortgage approval. If any contingency isn't satisfied, the buyer can typically walk away without penalty - and the home returns to active status.

Understanding under contract status

"Under contract" is a broader term that simply means the buyer and seller signed a purchase agreement. Some markets use this phrase interchangeably with "pending," while others use it to describe any home with a signed contract - whether contingencies remain or not.

How long is a house pending?

Most homes remain pending for two to eight weeks, though the timeline varies. Cash purchases, which represent 30% of home purchases, often close faster - sometimes in as little as one to two weeks - because they skip the mortgage approval process. Financed purchases typically take 30 to 45 days as lenders verify income, order appraisals, and prepare loan documents.

Several factors influence the pending timeline:

• Financing type: Cash offers close quickest, conventional loans take three to four weeks, and government-backed loans like FHA or VA can extend to 45 days or longer.

• Inspection results: If the inspection uncovers issues requiring repairs or renegotiation, the pending period extends while both parties work through solutions.

• Appraisal scheduling: In busy markets, appraisers may be booked weeks out, delaying the timeline even when everything else is ready.

• Title complications: Unexpected liens, ownership disputes, or errors in property records can add days or weeks to the closing process.

If a home lingers in pending status beyond 60 days, it may signal complications - though some transactions legitimately require more time, especially with complex financing or estate sales.

Can you make an offer on a pending home?

Yes, you can submit a backup offer on a pending home, though the seller isn't obligated to consider it - and most won't. Once a property reaches pending status, the seller has committed to the current buyer and typically focuses on getting that deal to closing rather than entertaining new offers.

That said, backup offers serve as insurance for sellers. If the pending deal falls through due to financing issues, inspection problems, or buyer cold feet, a strong backup offer allows the seller to move forward immediately without relisting the property.

Submit a backup offer

A backup offer positions you as next in line if the current deal collapses. Your real estate agent can submit the offer to the listing agent with a note that you're willing to step in if needed. To make your backup offer competitive, consider including minimal contingencies, proof of financing or cash funds, and flexible closing dates that accommodate the seller's timeline.

Contact the listing agent

Before submitting a backup offer, have your agent reach out to the listing agent to gauge the situation. Ask about the strength of the current deal: Have contingencies been cleared? Did the inspection go smoothly? Is the buyer's financing solid? The answers help you assess whether pursuing this property makes sense or if you're better off focusing your energy elsewhere.

Know when to move on

While backup offers occasionally work out, they rarely result in a purchase. Most pending sales close successfully, so waiting for a pending home means potentially missing other opportunities. If you're serious about buying soon, continue viewing active listings and making offers on homes without pending status - you can always withdraw if your backup offer gets accepted.

Why pending sales fall through

Though most pending sales reach closing, some deals collapse before the finish line.

Financing falls apart

The buyer's loan approval can unravel for several reasons: job loss or income changes between pre-approval and closing, unexpected debts appearing on credit reports, or last-minute large purchases that alter debt-to-income ratios. Even pre-approved buyers aren't guaranteed final loan approval until the lender completes a final verification just before closing.

Home inspection issues

A home inspection might reveal major defects - foundation cracks, roof damage, electrical hazards, or pest infestations - that the buyer wasn't expecting. If the seller refuses to make repairs or negotiate a lower price to account for the issues, the buyer can typically exercise their inspection contingency and walk away from the deal.

Low appraisal results

When a home appraises below the agreed purchase price, it creates a gap that someone has to cover. Most lenders won't loan more than the appraised value, so the buyer either needs to bring extra cash to closing to make up the difference or negotiate a lower price with the seller. If neither party can bridge the gap, the deal often falls apart.

Buyer gets cold feet

Life changes happen quickly. A buyer might receive a job transfer to another city, experience a family emergency, or simply develop second thoughts about the purchase. While backing out after contingencies are removed typically means losing earnest money, some buyers decide the financial penalty is worth avoiding a purchase they no longer want to make.

What percentage of pending home sales actually close?

Approximately 95% of pending sales successfully close. While exact percentages fluctuate with market conditions, pending status is a strong indicator that the deal will complete. Properties marked "contingent" have higher fall-through rates because major conditions still need to be satisfied, but once a home reaches pending status, both parties have cleared significant hurdles and are committed to finishing the transaction.

Tips for buyers when a house is pending

Finding your dream home only to see it marked "pending" is frustrating, but you're not entirely out of options. Here's how to stay competitive without putting your home search on hold.

1. Submit a strong backup offer

Include an escalation clause that automatically increases your offer if the pending deal falls through and other backup offers emerge. Minimize contingencies where possible, attach proof of financing or cash funds, and consider adding a personal letter to the seller explaining why you love their home.

2. Get pre-approved for financing

Pre-qualification is a quick estimate of what you might afford, but Pre-approval involves a lender reviewing your full financial picture - income, assets, debts, and credit history. Pre-approval shows sellers you're a serious buyer who can actually close, not just someone casually browsing homes.

3. Stay flexible on terms

Accommodate the seller's preferred closing date, even if it means waiting longer or closing faster than you originally planned. Offer a rent-back arrangement if the seller needs extra time to move out after closing. Flexibility can set your offer apart from others with similar price points.

4. Continue your home search

Don't pause your search waiting for a pending home to become available. The odds are against you, and time spent waiting is time you could spend finding another property you love. Keep viewing active listings, attending open houses, and making offers on homes that meet your criteria.

What sellers should do during pending status

Once your home is pending, your work isn't quite done. Here's how to keep the deal moving smoothly toward closing and minimize the risk of last-minute problems.

1. Keep your home show-ready

Don't start packing everything yet. The buyer will conduct a final walk-through before closing to verify the home's condition hasn't changed since their initial offer. Stay accessible for any additional inspections the lender or buyer might request, and maintain the property in the same condition the buyer expects.

2. Complete requested repairs quickly

If your contract includes agreed-upon repairs, address them promptly and hire licensed contractors who can provide documentation of completed work. Delays in finishing repairs can push back the closing date or give the buyer grounds to renegotiate.

3. Prepare for the appraisal

Clean and declutter before the appraiser visits, as presentation can subtly influence their assessment. Compile a list of recent upgrades you've made - new roof, updated HVAC, kitchen renovations - and provide comparable sales data from your neighborhood if helpful.

4. Have a contingency plan

Even though your sale is pending, know your options if the deal falls through. Keep backup offers on file if you received any, and stay in touch with your agent about market conditions.

Skip the uncertainty of traditional pending sales

The pending period creates stress for both buyers and sellers - weeks of uncertainty wondering if financing will come through, if the appraisal will meet the price, if inspection issues will derail everything. Opendoor eliminates this waiting game entirely.

When you sell to Opendoor, you receive a cash offer with no financing contingency to worry about. There's no appraisal gap risk, no buyer cold feet, and no renegotiations after inspection. You choose your closing date based on your timeline - whether that's two weeks or two months - and move forward with complete certainty.

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FAQs about pending home sales

Can a seller back out of a pending sale?

Sellers can back out, but they may face legal and financial consequences depending on contract terms. Buyers may be entitled to keep the earnest money deposit or pursue specific performance - a legal remedy that forces the seller to complete the sale as agreed.

What happens to earnest money when a pending sale falls through?

Earnest money disposition depends on why the deal fell through and what contingencies existed in the contract. If the buyer backs out without a valid contingency, the seller typically keeps the deposit - usually 1% to 3% of the purchase price - as compensation for taking the home off the market.

Should sellers accept backup offers while pending?

Accepting backup offers provides insurance if the primary deal falls through. Backup offers keep qualified buyers interested without requiring you to start marketing again, though you're not obligated to accept them if your pending sale closes successfully.

What does "pending continue to show" mean?

This status means the seller will still allow showings and consider backup offers during the pending period. It signals the seller wants options if the current deal doesn't close, though it's less common than standard pending status where showings stop entirely.