What is the difference between 'Pending' and 'Sold'?

I've had a lot of questions recently regarding why some listings have a "Pending" rider on their For Sale Sign and others say "Sold." That's a really good question because it can be confusing. In the past as soon as a home would be under contract the buyer's agent would up a "Sold" sign with their name and company logo. Many of us still do that. However, more recently many agents are using a "Pending" sign which is technically correct. The home really isn't "Sold" until it closes. It all comes down to old practice vs new practice. Both are acceptable. Pending simply means that the sale is going through the final escrow process to close. On the MLS (Multiple Listing Service) once the sale in under contract it is changed from "Active" status to "Pending" status. When the sale closes the sale price and terms are posted on the MLS for all agents and appraisers to help them determine the accurate listing/sale price for comparable homes.

Share this post!