What Does Pending On Zillow Mean?

If you are searching for a new house - or thinking about putting your own place on the market - you may be confused and overwhelmed by all the terms associated with buying and selling real estate. The industry has its own language, including many legal terms (since a real estate transaction is ultimately a legal matter). Learning these terms can help you make more informed decisions about buying or selling a house.

The term “pending” is often seen on real estate listing sites like Zillow - and even on real estate signs in front of houses. Broadly, it means that the property in question is under contract. A “pending” listing will usually result in a sale, assuming both buyer and seller meet all contingencies and want to complete the transaction.

Based in Lithia, Eaton Realty works with buyers, sellers, renters, and landlords throughout Hillsborough County. We understand that buying or selling a house can be emotionally and financially difficult, so we advise our clients on ways to increase the likelihood of a successful transaction. If you’re looking to buy or sell a house in West-Central Florida, give us a call to talk to a member of our team.

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Understanding MLS Listing Terms

The Multiple Listing Service, or MLS, is where realtors and other real estate professionals can list a property for sale. Most real estate firms across the country use this database to list residential, commercial, agricultural, and other properties (including foreclosures) for sale. The MLS listings then appear on various other websites, such as Zillow.

As a general rule, properties that are listed for sale by a real estate agent will be on the MLS. It is also possible for an individual to list a for-sale-by-owner property on the MLS by paying a real estate brokerage that provides such a service.

When you search for properties for sale on the MLS, each will have a particular status. Understanding these terms is critical to knowing which properties are available - or may become available for sale. Key terms to know include:

• Active: any listing that is active on the market and available for sale. Active listings may have offers but are not under contract - the buyer and seller have not yet come to an agreement.
• Under Contract: any property that is under contract with a buyer. Under contract listings can be further broken down into 2 subcategories:
  • Under Contract - Show or Backups Requested: this status means that while the property is under contract with a buyer, realtors can still show it to other potential buyers and submit backup offers.
  • Under Contract - No Show: this status is used when a property is under contract and cannot be shown. This may be because the existing offer is solid or simply because the sellers aren’t interested in continuing to show their house.
• Contingent: this status is used when a seller has accepted an offer but wants to keep the listing active in case the prospective buyer doesn’t meet certain contingencies. Common contingencies include being approved for a mortgage, the home passing inspection, and the prospective buyer selling their current house.
• Pending: this is another way to say “under contract” or “pending closing.” When a house is listed as pending, it is under contract with a buyer, but the deal hasn’t closed yet. On many sites, once a contract’s contingencies have been met, the status changes from “contingent” to “pending.”

Different real estate markets may use a variation of these terms (such as under contract instead of pending). You may also see these terms on “for sale” signs on properties.

For every status other than “active,” the seller has a legal obligation to the buyer. Even if a property is under contract but accepting showings, the seller can’t simply accept a higher offer. If they do so, the prospective buyer may be able to pursue legal remedies for breach of contract.

What Does It Mean When a Zillow Listing Is Pending?

When a listing on Zillow - or any other real estate site - is pending, the property owner/seller has accepted an offer, but the closing hasn’t happened yet. During the time between offer acceptance and closing, many steps must be taken, such as a title search, home inspection, home appraisal, and obtaining a mortgage. At any point during this process, the deal can fall through.

According to a recent National Association of Realtors survey, in April 2022, 7% of all home sale contracts were terminated. During the same period, 75% of all closed sales had contingencies attached. Having contingencies in a contract increases the likelihood that a real estate contract will fail.

So what does a “pending” listing mean for buyers and sellers? For buyers, it means you may be unable to purchase a house because the seller is already under contract with someone else. However, you may still be able to make an offer that the seller can have as a backup in case the deal fails. Alternatively, you can monitor the listing to see if it switches back to active status.

If a deal falls through, you may be in a stronger position to negotiate a better deal with the seller. If you really want the property, making a strong backup offer might be a better option, as the seller may be less likely to work with the prospective buyer on contingencies and other issues. Your Hillsborough County realtor can advise you whether it is better to watch the listing instead of making a backup offer.

If you are a buyer under contract with a seller, then a “pending” listing is good news as you are getting closer to buying the house you want. That being said, you must still be diligent to ensure the deal closes. Taking certain steps, like getting pre-approved for a mortgage, can help you meet any contingencies in the contract.

For sellers, it’s important to remember that even if your house is under contract, the deal may fall apart. This can happen for a variety of reasons, such as:

• A low appraisal value
• Property title issues
• Inability to secure a mortgage
• Buyer is unable to sell their current home
• A buyer has remorse or backs out for another reason

Your realtor can help you choose the strongest offer to minimize the potential of the deal failing. They can also counsel you on whether it makes sense to accept backup offers and what you can do to ensure the process goes smoothly, such as having a pre-inspection done. Taking these steps can help to ensure you get to the closing and complete your home sale.

How Eaton Realty Can Help

The real estate market can be challenging for both buyers and sellers alike. A pending listing isn’t a guarantee that closing will happen. An experienced real estate agent can work with you to increase the odds of a successful real estate transaction for a buyer or a seller.

At Eaton Realty, we work with individuals, families, and property investors throughout Hillsborough County. Our realtors have the market knowledge and experience to help buyers, sellers, and renters achieve their real estate dreams. To learn more about our real estate services, fill out our online contact form or call our office at 813-672-8022.