You’ve probably experienced the heartbreak of finding a house you love only to see that it’s pending. But what does it mean if its status is “pending continue to show?” Did you miss your chance?
Houses go through many status changes during the course of a real estate transaction—some are more ambiguous than others. For example, “for sale,” “in contract,” and “sold” are pretty self-explanatory, but what does “pending,” “option pending,” and “pending continue to show” mean?
These different pending states are important to understand whether you’re looking to buy a home or sell a home. Here are the basics about what some of these confusing listing statuses really mean.
What does “pending continue to show” mean?
“Pending continue to show” means that the seller wants to continue to show the house to other buyers in case the current contract falls through. During this time, the seller will still encourage—and even sign onto—backup offers for the property.
Choosing to allow showings and backup offers does not mean that the seller can renege on their current purchase agreement. They can simply accept backups in case the current contract doesn’t close.
What are the differences between the “pending,” “pending continue to show,” and “option pending” statuses?
Understanding the selling process helps to distinguish between these different stages. The option stage is the first step after a seller accepts an offer. The buyer and seller have an initial signed contract and the buyer has agreed to pay an amount upfront as a good faith gesture that will be credited to the down payment due at closing.
This option fee is usually 0.1 percent of the final sale price. This fee essentially pays for the buyer’s right to enter the property, conduct inspections, create a contingency list, and cancel the contract for any reason within the (usually 7- to 10-day) option period without forfeiting their earnest money deposit.
If the seller refuses to meet the contingencies, they may back out of the agreement and go to the next buyer offer. If the buyer backs out, they will usually forfeit the option money and any money they paid for a home inspection.
If the buyer and the seller both decide to move forward after the option period, the seller can change the listing status to “pending” or “pending continue to show.”
“Pending” means that the seller is confident the sale will close and does not want to show the property to any other buyers at all. “Pending continue to show” means that the seller is moving forward with the current buyer in good faith. However, the property will continue to show through the listing agent and take backup offers.
Once the transaction has moved out of the option period, the buyer can’t back out without a very good reason or they will forfeit their earnest money deposit. At this phase, usually the only valid reason a deal will fall through is the appraisal price comes in much lower than offer price. In this instance, there is usually a contingency in the contract that the seller cannot hold onto the earnest money deposit, unless the buyer has agreed to pay appraisal gap coverage.
Why would a seller decide to take the sale through “pending continue to show” instead of “pending?”
“Pending continue to show” sounds like a less committal position and this may scare the buyer. However, there are many reasons for a seller to choose the “pending continue to show” status over the “pending” status:
- First, a seller might not feel confident about the buyer. Whether they put down a low earnest money deposit or they seem difficult or noncommittal, the seller might want to add another layer of peace of mind to the sale.
- Second, a seller may be playing politics. Setting the property status to “pending continue to show” could be the kick the buyer needs to move fast to close the sale. A seller could also use this to jockey for a different set of terms in the current agreement.
- Third, the seller may want to bid up the price more, especially if the appraisal or property tax assessment comes back below the selling price. Additional interest in the property can positively affect the property value.
- Fourth, if the seller added terms and provisions to the purchase agreement before accepting and signing a buyer’s offer, they can cancel the sale and take a higher bid or even pressure the current buyer to raise their bid to match new bids.
