# Why do pending home sales fall through?
By Opendoor Editorial Team | 2020-03-10
## Key Takeaways
## Key takeaways
- A house is **pending** when the seller has accepted an offer and the major contingencies (inspection, appraisal, financing) have been satisfied or waived — the deal is in the final stretch before closing.
- Pending status typically lasts **2 to 8 weeks**: about [**1 to 2 weeks for cash buyers**](https://help.opendoor.com/selling/how-it-works/how-selling-to-opendoor-works) and [**30 to 45 days for financed buyers**](https://help.opendoor.com/buying/financing-closing/buyer-closing).
- Roughly **95% of pending sales close**, but the **other 5%** fall through — most often because of financing, low appraisal, title issues, or buyer's remorse.
- [**Earnest money (typically 1-3% of price)**](https://help.opendoor.com/buying/making-an-offer/earnest-money-deposit) is refundable when a buyer cancels inside an active contingency, and at risk when they cancel outside one.
- Buyers interested in a pending home can usually ask the listing agent to be placed in the **backup position** — many Opendoor pending homes will [accept backup offers](https://help.opendoor.com/buying/making-an-offer/pending-properties).
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](https://www.opendoor.com/articles/what-happens-after-house-offer-is-accepted) 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.
[Get your offer](#)
## **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](https://www.opendoor.com/articles/how-much-are-closing-costs-for-seller), and both parties coordinate the transfer of funds and keys.
## **Pending vs. under contract vs. contingent**
These[ three terms often cause confusion](https://www.opendoor.com/articles/contingent-vs-pending) because they describe overlapping stages of a home sale. Here's how they differ:
| **Status** | **What it means** | **Can you make an offer?** |
| **Contingent** | Offer accepted with conditions that must be met (inspection, financing, appraisal) | Sometimes - seller may accept backup offers |
| **Under contract** | Buyer and seller signed agreement, may include contingencies | Depends on market and contract terms |
| **Pending** | Offer accepted, contingencies cleared, closing imminent | Rarely - seller typically won't consider new offers |
### **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"](https://www.opendoor.com/articles/under-contract-meaning) 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.
Related: [contingent vs pending](https://www.opendoor.com/articles/contingent-vs-pending) · [under contract meaning](https://www.opendoor.com/articles/under-contract-meaning).
## **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](https://www.zillow.com/learn/how-long-does-it-take-to-close-on-a-house/), 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](https://www.opendoor.com/articles/how-long-does-closing-take) 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.
Related: [how long does closing take](https://www.opendoor.com/articles/how-long-does-closing-take).
## **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.
[Get your offer](#)
### **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.
Related: [Opendoor backup offers on pending properties](https://help.opendoor.com/buying/making-an-offer/pending-properties).
## **Why pending sales fall through**
Though most pending sales reach closing,[ some deals collapse before the finish line](https://www.opendoor.com/articles/why-do-pending-home-sales-fall-through).
### **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](https://www.opendoor.com/articles/seven-home-inspection-deal-breakers) - 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](https://www.opendoor.com/articles/home-appraisal-process), 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.
## Which contingencies cause the most pending sales to fall through?
Not every collapsed pending sale collapses for the same reason. Industry data and lender reporting consistently show that **financing and appraisal issues** account for the majority of cancellations, with inspection findings and title surprises trailing. Understanding which contingency triggers cancellations helps both sides set expectations and decide where to add belt-and-suspenders protection.
The rough breakdown of why pending sales fall through, from most to least common:
- **Financing falls through.** The buyer's loan is denied during underwriting, often after a credit score drop, a new debt the buyer took on after pre-approval, employment changes, or a documentation gap. Financing causes the **largest single share** of pending-sale cancellations latest financing share of pending-sale cancellations.
- **Appraisal comes in low.** The lender's appraisal values the home below the contract price, forcing renegotiation. The buyer can ask the seller to lower the price, bring extra cash to cover the gap, or cancel. When neither side blinks, the deal dies.
- **Inspection finds major defects.** The inspector flags structural, roof, HVAC, electrical, or moisture issues that prompt the buyer to renegotiate or walk. Even with an active inspection contingency, big findings can derail a deal in days.
- **Title issues.** The title search uncovers liens, easements, boundary disputes, or unresolved heir-claims that the seller can't clear in the closing window.
- **Buyer's remorse.** The buyer cancels for personal reasons — job change, relationship change, family situation, or simply cold feet. Whether the earnest money is returned depends on which contingency the buyer cites.
- **HOA or insurance surprises.** Special assessments, governance disputes, or insurability problems (often in flood or wildfire zones) can scuttle a deal late in the timeline.
- **Buyer fails to perform.** The buyer misses a contractual deadline (loan documentation, earnest-money deposit, inspection scheduling), giving the seller the right to cancel and keep earnest money.
- **Seller cancels.** Rarest; usually triggered by a probate or family complication, a relisting strategy, or a seller acting in bad faith. Seller cancellation typically requires a defensible contract clause or exposes the seller to buyer-side damages.
The two biggest takeaways: **financing and appraisal protect buyers more than sellers**, and **the timing of each contingency window matters as much as the contingency itself**. For more on the specific defects that most often kill a deal at the inspection stage, see [seven home inspection deal-breakers](https://www.opendoor.com/articles/seven-home-inspection-deal-breakers).
Related: [seven home inspection deal-breakers](https://www.opendoor.com/articles/seven-home-inspection-deal-breakers).
## What to do when a pending home sale falls through
A pending sale that collapses is stressful for both sides, but the playbook is well-established. The right response depends on **whether you're the buyer or the seller**, **which contingency triggered the cancellation**, and **what stage of the timeline** you'd already reached. Below is the practical sequence for each side.
**If you're the seller and the buyer cancels:**
1. **Confirm the cancellation is in writing.** Verbal walk-aways have no legal standing. You need a signed cancellation notice citing the specific contingency.
2. **Verify the earnest money outcome.** If the buyer canceled inside an active contingency, the deposit returns to them; if they canceled outside one, it's typically yours. Both sides need to sign a **mutual release** before escrow distributes the funds.
3. **Check your backup offers.** If you had backup-position offers, those are now in play. You usually have a defined window (24-48 hours per most contracts) to formally accept the backup.
4. **Get back on the market.** Re-listing within a week limits the **"why is this back on the market"** stigma. Update your photos, refresh staging, and have your agent send the listing to the original buyer pool.
5. **Re-disclose anything the inspection turned up.** If a buyer canceled after the inspection found a major defect, you typically must disclose those findings to the next buyer. State disclosure laws vary.
**If you're the buyer and you canceled:**
1. **Document the cancellation reason and your earnest-money status.** Keep your written cancellation, the inspection report or loan denial, and the mutual release in one folder.
2. **Run a quick post-mortem on the contingency strategy.** If the deal collapsed because you waived a contingency in a competitive offer, factor that lesson into your next bid.
3. **Plan your next offer.** Many buyers benefit from a few days off the market to reset before re-engaging. Your lender's pre-approval is usually still valid; confirm before you submit the next offer.
**If you're the buyer and the seller backed out:**
1. **Review the contract for buyer remedies.** Most contracts give the buyer the right to **specific performance** (force the sale) or **damages** if the seller breaches without a valid cancellation clause.
2. **Talk to a real estate attorney.** Seller breach is unusual but the legal options are time-sensitive.
3. **Confirm earnest-money return.** The deposit comes back to you when the seller is at fault.
If either side wants to **skip the pending-status risk entirely**, [Opendoor's cash offer](https://help.opendoor.com/selling/how-it-works/how-selling-to-opendoor-works) closes in 14 to 60 days with no financing or appraisal contingencies and a free cancellation window before closing.
## **What percentage of pending home sales actually close?**
[Approximately 95% of pending sales](https://www.homelight.com/blog/how-often-do-pending-offers-fall-through/) 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](https://www.opendoor.com/articles/mortgage-preapproval) 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.
## How to reduce the risk of your pending sale falling through
Sellers and buyers can each take concrete steps to lower the probability that a pending sale collapses. Most of the protection is **earned before the offer is accepted**, not after, so the strongest moves are upstream of the contract.
What sellers can do to reduce risk:
- **Verify pre-approval, not just pre-qualification.** Pre-approval means the lender has run credit, income, and asset verification; pre-qualification is a self-reported snapshot. Insist on pre-approval letters before accepting a financed offer.
- **Prefer larger earnest-money deposits.** A 3% earnest deposit signals serious intent and tightens the buyer's exit options.
- **Limit contingency windows.** Shortening the inspection contingency to 7-10 days and the financing contingency to 21-25 days speeds the pipeline and surfaces problems earlier.
- **Order a pre-listing inspection.** Surfacing defects before you list lets you price the home accurately, prepare disclosures, and prevent surprises during the buyer's inspection.
- **Accept backup offers.** A backup-position buyer is the best insurance against losing the pending status; many sellers refuse them for cosmetic reasons.
- **Consider a cash buyer.** [Opendoor's cash offers](https://help.opendoor.com/selling/how-it-works/how-selling-to-opendoor-works) close in 14-60 days with no financing or appraisal contingencies, eliminating two of the largest deal-killing categories.
What buyers can do to reduce risk:
- **Lock your rate at offer acceptance, not after the appraisal.** A locked rate insulates you from rate jumps during pending status.
- **Don't take on new debt during pending status.** A new car loan, store credit card, or even a co-signed loan can drop your credit score enough to trigger a loan re-underwrite.
- **Stay employed in the same job.** Lenders re-verify employment in the final week. A new job (especially a different industry) can stop the loan.
- **Respond to lender document requests within 24 hours.** Most financing-driven delays trace back to a borrower who didn't return a tax transcript or pay-stub in time.
- **Order specialty inspections in parallel** with the main inspection (radon, sewer scope, termite, mold) so any findings are surfaced once, not in waves.
- **Verify wire instructions by phone** with a number you obtained independently. Wire fraud is one of the fastest-growing ways pending sales collapse at the closing table.
For a deeper look at the post-acceptance sequence, see [what happens after a house offer is accepted](https://www.opendoor.com/articles/what-happens-after-house-offer-is-accepted).
Related: [what happens after a house offer is accepted](https://www.opendoor.com/articles/what-happens-after-house-offer-is-accepted).
## **What sellers should do during pending status**
Once your home is pending,[ your work isn't quite done](https://www.opendoor.com/articles/house-closing-process-for-seller). 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.
[Get a free, no-obligation cash offer today](https://www.opendoor.com/address-entry)
Related: [earnest money](https://www.opendoor.com/articles/earnest-money).
**FAQs about pending home sales**
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*Originally published at [https://www.opendoor.com/articles/why-do-pending-home-sales-fall-through](https://www.opendoor.com/articles/why-do-pending-home-sales-fall-through)*