In Real Estate, What Does “Pending” Mean?
If you’re in the market for a new home this year and have your eye on the perfect place, it might be very discouraging to find that it’s “pending.” What does it mean, though, when a house is “pending”? And does the status of “pending sale” on a property’s listing imply that it is no longer for sale?
In this post, we’ll discuss the meaning of the term “pending” in the context of real estate and why it doesn’t always indicate a completed transaction.
What Does It Mean When A House Is “Pending”?
When a seller accepts an offer from a buyer, the sale is pending. Pending status typically indicates that all contingencies have been worked out, the contract has been signed, and the only thing left to do is move through the final stages of escrow, as opposed to contingent status, which means the seller has accepted an offer but must still meet certain requirements.
There has been a lot of progress on the selling of the house, but it hasn’t closed yet. You can still make an offer on the property if the real estate listing has a pending status. However, keep in mind that unless the other sale goes through, the seller is not likely to give your offer significant consideration.
When a seller accepts an offer from a buyer, the seller typically signs a document waiving the right to rescind the purchase agreement in the event of a higher offer. Putting in an offer is an option, but it might not be worth it.
However, this risk may perhaps pay off in the future. It’s likely that you’re looking at a competitive market or that you’ve located the house of your dreams if you’re thinking about placing an offer on a house that is already under contract. In the event that the sale that is currently in progress goes through, the seller may look at their backup offers, thus it is important that your offer is competitive.
Make sure the mortgage approval procedure has begun before making an offer. By obtaining Verified Approval in addition to basic approval, you can demonstrate that you’ve been subjected to intensive screening. A seller whose last house sale fell through may find this increased level of financial scrutiny highly enticing.
What is the point of a house being marked as “Pending”?
When a home is put up for sale, the selling agent will add it to a database called a multiple listing service (MLS), which lists all of the available homes in a specific area. The listing status can change from “active,” when the current owner first puts the property on the market, to “contingent,” “pending,” “cancelled,” or “sold,” depending on where the transaction is in the home-buying process.
Pending status indicates that all conditions for closing the sale of the subject property have been satisfied. When a listing’s status changes from “contingent” to “pending,” it signifies that all conditions have been met and the deal is close to closing.
Pending listings indicate that the home is under contract but has not yet closed. The transaction could fall through for a variety of reasons, such as the buyer’s inability to secure finance.
Is It Possible to Make an Offer on a House That Is Already Pending?
Once the home is pending, it is unlikely that you will be able to submit an offer. Due to the absence of a “kick-out” clause in many purchase agreements, the seller is unable to continue showing the property or accepting offers. However, it is not a bad idea to inquire if a backup offer can be made to the buyer’s real estate agent or REALTOR®.
If the seller is willing to consider a backup offer, you can utilise it to ensure that you remain on the list of prospective buyers. Your offer will be accepted and the seller will sign a contract with you to sell the house if the original sale falls through. Backup offers can be useful in competitive situations like bidding wars and pending transactions, but they don’t guarantee you’ll be able to purchase the home once the initial deal closes.
The previous bidder was obviously serious about making an offer, so if the seller accepts it and a contract is signed, it’s highly unlikely that the sale will be rescinded. However, there is a way to make an offer on a home that is already in the process of being sold if you really want to buy it.
Offering on a Pending Home: Steps to Take
Making an offer on a property that is currently being sold or bought involves the following three procedures:
Reach out to the listing agent: Check with your real estate agent to see if the seller is still open to offers and if the sales contract contains a “kick-out” clause.
Make an offer by drafting the following: The listing agent may still be open to receiving offers, so you can get to work on an offer. If the transaction is finalized, you probably won’t hear anything else from us. The listing agent will get in touch with you if the sale falls through.
Set up your finances in advance: Before making an offer on a pending home, it’s crucial to acquire pre-approval for a mortgage. The seller will know you are serious about making a buy and can afford the house if you have previously been pre-approved for a mortgage. You may stand out from other offers the seller receives if you include a letter of approval from your lender.
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