How Long Can a House Be Pending: Understanding the Timeline

As a homeowner considering selling your property, you might have questions about the home selling process, especially when it comes to pending sales. At Mill City Home Buyers, we understand that navigating the real estate market can be confusing and stressful. That’s why we’re here to help you understand what happens when your house goes into a pending status and what it means for you as a seller.

As Minnesota cash home buyers, we’ve helped numerous homeowners through the selling process, including those dealing with pending sales. In this article, we’ll break down everything you need to know about pending home sales, including how long they typically last and what you can do if your pending sale falls through.

What is a Pending Sale?

Before we dive into the timeline of a pending sale, let’s start with the basics. A pending sale is a stage in the home selling process where you, the seller, have accepted a buyer’s offer, but the sale is not yet complete. This means that you and the buyer have agreed on the purchase price and terms of the sale, but there are still a few steps to go before the deal is done.

When your home is listed as pending, it’s a sign that you’re moving forward with the sale. However, it’s important to remember that a pending sale doesn’t guarantee that your home will be sold to that buyer. Things can still happen that might cause the sale to fall through, potentially leading to your home being relisted, sometimes even selling below market value.

The Pending Sale Process: What to Expect as a Seller

Now that we know what a pending sale is, let’s look at what happens during this stage of the home-selling process. A contingent sale refers to a situation where a seller accepts an offer while still keeping the listing active due to unresolved contingencies. This status is different from a pending sale, which indicates that all contingencies have been satisfied and the sale is advancing toward closure. Typically, the pending sale process involves several key steps:

1. Buyer’s financing: The buyer will work on finalizing their mortgage loan if they haven’t already. As a seller, you’ll be waiting for confirmation that the buyer’s financing is secure.
2. Home inspection: The buyer will usually have a professional home inspection done to check for any issues with your property. Be prepared for potential negotiations if the inspection reveals any problems.
3. Appraisal: The buyer’s lender will often require an appraisal to ensure your home is worth the purchase price. If the appraisal comes in low, it could affect the buyer’s financing and your sale price.
4. Title search: A title company will search to make sure there are no outstanding liens or issues with your home’s title. Ensure all your paperwork is to avoid delays.
5. Finalizing the sale: Both you and the buyer will work on completing any remaining paperwork and meeting the conditions of the sales contract.

This process can take anywhere from a few days to several weeks, depending on various factors like the buyer’s financing situation, the results of the home inspection, and how quickly both parties can complete the necessary steps.

How Long Can Your House Be Pending?

One of the most common questions we hear from sellers at Mill City Home Buyers is, “How long will my house be in pending home sale status?” The truth is, there’s no set time limit for how long a home can remain in pending status. However, most pending sales typically last between 30 and 60 days.

Keep in mind that this timeline can vary depending on several factors:

• The buyer’s financing situation
• Any issues discovered during the home inspection
• The complexity of the real estate transaction
• Local market conditions
• Contingencies in the purchase agreement

In some cases, a pending sale might be completed in as little as a week or two. In other situations, it could drag on for months if there are complications or delays. For example, if you’re selling a house in probate, the process might take longer due to additional legal considerations.

What If Someone Wants to Make an Offer on Your Pending Home?

While your home is in pending house status, you might receive interest from other potential buyers. Here’s what you need to know:

1. Legal obligations: Remember, you’re legally obligated to proceed with the current buyer unless the deal falls through.
2. Backup offers: You can accept backup offers, which will come into play if the current deal falls through. This can provide you with a safety net.
3. Communicating with your agent: If you’re working with a real estate agent, they should manage communications with interested buyers and keep you informed.
4. Considering your options: If you receive a particularly attractive offer, discuss with your agent the potential risks and benefits of trying to back out of the current deal (which can have legal consequences).

Why Do Pending Home Sales Fall Through?

Understanding why pending sales sometimes fall through can help you be prepared and potentially avoid these pitfalls. Here are some common reasons:

1. Financing issues: If the buyer’s mortgage loan falls through, the sale will likely be canceled.
2. Low appraisal: If your home appraises for less than the purchase price, it can cause problems with the buyer’s financing.
3. Home inspection concerns: Major issues discovered during the home inspection might cause the buyer to back out or request repairs you’re not willing to make.
4. Buyer’s remorse: Sometimes, buyers simply get cold feet and decide to walk away from the deal. This feeling of buyer’s remorse can lead to the buyer backing out, potentially resulting in the loss of earnest money deposits and facing legal challenges, although such scenarios are relatively rare.
5. Title issues: If problems are discovered during the title search, it can delay or derail the sale.
6. Contingencies not met: If any contingencies in the sales contract aren’t satisfied, either party might be able to back out of the deal.
7. Changes in personal circumstances: Life events, such as job loss or selling a house during a divorce, can complicate the process and sometimes lead to a sale falling through.

As a seller, working with a cash home buyer like Mill City Home Buyers can help you avoid many of these potential pitfalls. We buy houses in as-is condition, which means you don’t have to worry about appraisals, inspections, or financing falling through.

Pending Sale Fall-Through Rates

While a pending sale is a promising step towards closing a home sale, it’s important to recognize that not all pending sales reach the final sale stage. According to the National Association of Realtors, the pending sale fall-through rate hovers around 3-5%. This statistic means that out of every 100 pending home sales, 3-5 may not close as expected.

Several factors can contribute to a pending sale falling through:

• Financing issues: One of the most common reasons is the buyer’s inability to secure financing. If the mortgage loan is denied, the sale cannot proceed.
• Home inspection issues: Significant problems discovered during the home inspection can lead the buyer to back out of the deal.
• Buyer’s remorse: Sometimes, buyers experience second thoughts about their purchase, leading them to cancel the sale.
• Contingencies: Sales often include contingencies, such as the buyer needing to sell their current home or the seller making specific repairs. If these conditions aren’t met, the sale may fall through.

It’s worth noting that the fall-through rate can vary based on location and the specific real estate market. In some areas, the rate may be higher or lower than the national average.

For buyers interested in making an offer on a pending home, understanding the pending sale fall-through rate and the reasons behind it is crucial. This knowledge can help you make a more informed decision about whether to pursue the property. Working with an experienced real estate agent can also be invaluable. They can provide insights into the home buying process, the local market conditions, and the likelihood of a pending sale falling through.

Remember, a pending sale is not the same as a final sale. Until the sale is officially closed, there’s always a chance that something could go wrong. However, with the right guidance and support, you can navigate these uncertainties and increase your chances of a successful home purchase.

In real estate, a pending sale signifies that the seller has accepted the buyer’s offer, and the sale is progressing. However, it’s essential to understand that a pending sale does not guarantee a final sale. By being aware of the pending sale fall-through rate and the potential pitfalls, you can make more informed decisions and work towards achieving your homeownership goals.

The Role of a Real Estate Agent in Pending Sales

Real estate agents play a crucial role in guiding both buyers and sellers through the pending sale process. When a seller accepts an offer, the property enters a contingent status, and here’s how agents can help:

• For buyers: A buyer’s agent can help you understand the terms of the sale, negotiate on your behalf, and keep you informed about the progress of the pending sale.
• For sellers: A listing agent will manage communications with the buyer’s agent, ensure all necessary paperwork is completed, and help resolve any issues during the pending period.

While real estate agents can be helpful, it’s worth noting that working with a cash home buyer like Mill City Home Buyers can often simplify the process even further. We don’t charge realtor commissions, and our process is designed to be quick and straightforward, even in complex situations like selling a house during a divorce.

Strategies for Sellers During the Pending Sale Process

To increase the chances of your sale pending going through smoothly, consider these strategies:

1. Be proactive about repairs: If you know of any issues with your home, consider addressing them before they come up in the inspection.
2. Stay flexible: Be prepared to negotiate if issues arise during the inspection or appraisal.
3. Keep your home in good condition: Continue to maintain your property as if it were still on the market. The buyer will likely do a final walk-through before closing.
4. Be responsive: Promptly reply to any requests for information or documentation to keep the process moving.
5. Consider backup offers: While your home is pending, you might want to consider accepting backup offers in case the current deal falls through.

What to Expect During a Pending Sale as a Seller

Here’s what you can expect during the pending period:

• Ongoing communication: There will likely be regular updates between your agent (if you’re using one), the buyer’s agent, and other professionals involved in the transaction.
• Paperwork and documentation: You’ll need to complete various forms and provide the necessary documentation. This can be more complex in situations like selling a house during a divorce.
• Problem-solving: If issues arise during the inspection or appraisal, you may need to negotiate solutions. This could include discussions about repairs or adjusting the sales price.
• Preparation for closing: As the closing date approaches, you’ll need to prepare for the final stages of the transaction, including scheduling the final walk-through and arranging for the transfer of ownership.

The Benefits of Selling to a Cash Home Buyer

If you’re concerned about the uncertainties of pending sales, selling to a cash home buyer like Mill City Home Buyers can offer several advantages:

1. Quick closing: We can often close in as little as 7 days, significantly reducing the pending period.
2. No financing contingencies: Since we buy with cash, there’s no risk of the deal falling through due to financing issues.
3. As-is purchases: We buy homes in any condition, eliminating the need for repairs or concerns about inspection results.
4. No appraisal required: You don’t have to worry about a low appraisal affecting the sale.
5. Simplified process: Our streamlined process eliminates many of the complexities of traditional home sales.

Conclusion: Navigating Pending Home Sales as a Seller

Understanding the pending sale process is crucial when you’re selling your home. While pending sales can be complex and sometimes unpredictable, being informed and prepared can help you navigate this stage of the real estate transaction more smoothly.

If you’re looking to avoid the uncertainties of pending sales, Mill City Home Buyers might be the solution you’re looking for. As cash home buyers in Minnesota, we offer a fast home sale in St. Paul and the surrounding areas. We buy houses in any condition, without repairs, inspections, or appraisals.

Whether you’re selling below market value due to time constraints, selling a house during a divorce, or just want a simplified selling process, we’re here to help. Interested in learning more about how we can help you sell your home quickly and easily? Check out our ‘How it Works‘ page to learn more about our process, or contact us today to get started. At Mill City Home Buyers, we’re committed to making your home selling experience as smooth and stress-free as possible, no matter your circumstances.