Understanding The Difference Between For Sale, Pending, and Sold
That Home Is Pending.
If you have been in the housing market as a buyer over the past three to four years, you have probably heard the phrase “That house is pending”. Most home buyers today are using internet home search sites like Zillow, and Realtor to find their dream home. Our team Vance Team At Home Experts works with buyers from both of these platforms, and we do get many requests for information about houses that are pending.
There are a couple of reasons for this. First and probably most important is the lack of housing inventory. There are more buyers than sellers right now. Add to that low interest rates, full employment, and builders not building enough new homes, and you can quickly see why the homes go pending so fast. (Read more about builders not building enough homes on our facebook page )
So why do the internet home search sites continue to display homes that are pending, or in some cases sold or off market? Bottom line is, the home search sites like Zillow and Realtor make their money by selling potential home buyer leads to real estate agents. They base the price of those leads on the number of property inquiries within each zip code. The more homes listed for sale means more leads available to sell. It can be very frustrating to a buyer who just got pre approved and is ready to make a home purchase. We are encouraging our buyer clients to only search our Vance Team At Home Experts website because the property status is updated constantly by our local MLS.
A Closer Look At What Each Term Means
Here are a few terms you may see when searching for your next home.
Coming Soon This is a status many local multiple listing services are allowing agents to use to introduce a home to the market, and build some excitement.
For Sale Means exactly what is says. The property is on the market and ready for a buyer to make an offer.
Pending or Contingent This means a buyer and a seller have reached an agreement on the purchase of a home. There is a contract to purchase. The house will maintain the pending status until the successful closing when all the documents are signed and the money changes hands. This period generally lasts between 30 and 45 days. The house can go back to the For Sale status during this period for a number of reasons. The two most common are home inspection problems, and failure of the buyer to obtain financing.
Sold The house has had a successful closing. A buyer and seller reached an agreement, documents were signed, and money changed hands.