A “contract” sale means that an agreement has been reached between the seller and the buyer, but the sale is still subject to contingencies. In a “pending” sale, the contingencies have expired and the deal is about to close. A pending sale can still fail if there is a problem with the financing or inspection of the home. Perhaps what contributes most to the fall in outstanding home sales revolves around financing.
Loan approval may simply not be approved, or the money the buyer needs for the down payment may not materialize. There's no way to know for sure if any of these problems are likely to occur. However, sellers can take the proactive step of contacting the buyer's lender to check their financial strength. There's nothing wrong with seeing how likely a buyer is to be approved.
Pending home sales fall more often than you might expect. There are several common causes, ranging from a poor home inspection to the sudden discovery of prohibitive levies. Fortunately, sellers can take preventive measures to help minimize the risk of their sale failing.
