Table of Contents:
- What does “Pending” mean in Real Estate?
- The Pending Process in Alberta
- Duration of Pending Period
- Common Conditions in Pending Sales
- Perspectives
- MLS® System and Pending Status
- FAQ’s
What does “Pending” mean in Real Estate?
Understanding the Implications of Pending Status in Alberta’s Real Estate Market
In the realm of real estate transactions, the term “pending” signifies a crucial phase where a property’s seller has accepted a buyer’s offer, but the sale has not yet been finalized. This period, often referred to as “sold pending conditions” or “sale pending,” indicates that certain contingencies must be satisfied before the transaction can be completed.
Understanding Pending Status
When a property is marked as “pending,” it implies that while an agreement has been reached between the buyer and seller, specific conditions outlined in the contract are yet to be fulfilled. Common contingencies include securing financing, satisfactory home inspections, and appraisals meeting the agreed-upon value. During this phase, the property is typically taken off the active market, awaiting the resolution of these conditions.
The Pending Process in Alberta
In Alberta, the real estate transaction process involves several stages, with the pending period playing a pivotal role. Once an offer is accepted, the property enters the pending status until all contractual conditions are met. This ensures that both parties have the opportunity to address any issues that may arise before the sale is finalized.
Duration of Pending Period
The length of the pending period can vary based on several factors. Typically, for single-family homes in Edmonton, Alberta, this period ranges from 7 to 10 business days, while condominium transactions may extend from 10 to 14 business days. The duration is influenced by market conditions, the specifics of the contingencies, and the efficiency of the parties involved in addressing these conditions.
Common Conditions in Pending Sales
Several contingencies can lead to a property entering pending status:
- Financing Contingencies: The buyer must secure a mortgage or financing approval to proceed with the purchase.
- Home Inspection Contingencies: A professional inspection is conducted to identify any structural or mechanical issues that may need attention.
- Appraisal Contingencies: An appraisal ensures that the property’s value aligns with the agreed-upon purchase price.
Perspectives on Pending Status
Seller’s Perspective on Pending Status
From the seller’s viewpoint, the pending status can impact the property’s visibility and marketability. While some sellers may prefer to continue showing the property to attract potential backup offers, others might opt to limit showings to focus on fulfilling the existing contract’s conditions. It’s essential for sellers to balance maintaining interest in their property while honoring the current agreement.
Buyer’s Perspective on Pending Status
Buyers encountering a property with a pending status should understand that the sale is not yet final. This presents an opportunity to submit backup offers, positioning themselves as potential buyers if the initial deal falls through. However, it’s crucial to consult with a real estate professional to navigate this process effectively.
Risks Associated with Pending Sales
Both buyers and sellers face certain risks during the pending period. For buyers, there’s the possibility of discovering issues during inspections or facing financing challenges. Sellers risk the deal falling apart if contingencies aren’t met, leading to the property returning to the market. To mitigate these risks, both parties should maintain open communication and promptly address any arising concerns.
Impact of Pending Status on Market Listings
The designation of a property as “pending” affects its visibility on multiple listing services (MLS). In some regions, pending properties are removed from active listings, reducing their exposure to potential buyers. This practice aims to provide an accurate representation of available properties but may also limit opportunities for backup offers.
MLS® System and Pending Status
Alberta’s MLS System and Pending Status
In Alberta, the MLS system displays pending status differently compared to other regions. Notably, the Alberta MLS System does not show the pending icon on Realtor.ca. This means that properties under pending status may still appear as active listings, potentially causing confusion among prospective buyers.
Comparison with Other Provinces
Some other provinces have adopted different approaches to displaying pending or conditional sales. For instance, Saskatchewan’s Realtor.ca now marks listings as ‘conditionally sold’ when an offer has been accepted but isn’t yet final. This update provides buyers with more accurate and transparent information about what’s truly available, helping them focus on homes that are still accepting offers.
Some argue that Alberta should follow Saskatchewan’s lead in displaying conditional sales on Realtor.ca to improve market transparency. If you’re interested in learning more about this debate, check out this blog post: Should Alberta Follow Saskatchewan’s Lead in Displaying Conditional Sale Status on Realtor.ca?.
Frequently Asked Questions (FAQs)
- What does ‘pending’ mean in real estate?
- ‘Pending’ indicates that a seller has accepted a buyer’s offer, but certain conditions must be met before the sale is finalized.
- How long does a property stay in pending status?
- The pending period typically lasts 7–10 business days for single-family homes and 10–14 business days for condos in Edmonton, Alberta. However, the exact duration depends on the conditions in the contract and market factors.
- Can a pending sale fall through?
- Yes, a pending sale can fall through if the buyer is unable to secure financing, if the home inspection reveals significant issues, or if any other conditions outlined in the contract are not met.
- Can I make an offer on a pending property?
- While a property is pending, it is technically off the market. However, in some cases, backup offers may be accepted. If the first deal falls through, the seller may consider a backup offer instead of relisting the home.
- Does pending status affect property value?
- Pending status itself does not change the value of a property. However, if a home repeatedly enters and exits pending status due to failed transactions, it may raise concerns among potential buyers and affect perceived desirability.
- How can I find out if a property is pending?
- In Alberta, the MLS system does not display a “pending” status on Realtor.ca. However, a real estate agent can provide information on whether a property has an accepted conditional offer.
