Offer Acceptance

• Both pending sale and escrow depend on the seller's accepting a buyer's offer. Certain overlaps exist at the last stages of a real estate sale. Some typical escrow matters may be moved up to the pending sale stage, such as ordering necessary inspections, while parties are still in final negotiations of contract terms. On the other hand, the pending sale may be technically over at some point, but the property will still be referred to as a pending sale until the escrow finally closes.
  
  

Pending Sale

• Pending sale in its narrow, technical term refers to the process of signing a purchase contract. Once the seller accepts a buyer's offer, the two sides enter into the contract negotiation process, and the sale is a pending sale, closed to new offers. The purchase agreement outlines various terms, including price, deposit, appraisal and inspections, and specify which escrow company to use. Potential sale price is not disclosed to the public at this stage to protect the seller's interest in case the sale fails to close.
  
  

In Escrow

• Parties officially open an escrow account after they have signed a purchase agreement. The escrow company acts as a neutral third party on behalf both the seller and the buyer to hold property documents for the seller and funds for the buyer. Once in escrow, the buyer's agent will collect an earnest money check and deposit it with the escrow company. The bank providing the mortgage will conduct its own appraisal in the escrow stage, which can affect the mortgage and whether an escrow will eventually close.
  
  

Contingencies

• A pending sale and escrow may fail to close if either party is unable to meet some of their obligations. For example, a purchase agreement remains in effective only contingent upon the buyer's ability to obtain a mortgage. Other contingencies may relate to bank appraisal or home repairs. If the bank's appraisal value comes in below the contract price, either the buyer has to put in more down payments or the seller has to lower his price to satisfy bank requirements. Failing to agree on how to share repair costs can often lead parties to walk away from a deal too.