After months of house hunting, you believe youโve discovered the ideal home. However, upon checking online, the propertyโs status reads โsale pending.โ Does this mean youโve missed your chance?
The status isnโt โsold,โ so what does โpendingโ imply for a property on sale, and what can you do if youโre keen on it?
What Does โSale Pendingโ Signify in Property Transactions?
In the realm of property transactions, a pending sale indicates that an offer on the house has been made and accepted by the seller.
However, the transaction hasnโt been completed, which is why itโs labeled as โpendingโ rather than โsold.โ If a property piques your interest and itโs listed as pending, itโs advisable for your realtor to liaise with the sellerโs agent to get insights on its status. There might be a slim possibility for you.
Is It Possible to Bid on A Home Labeled as Pending?
The straightforward answer is yes. However, it might not be the best move. While a pending agreement isnโt irrevocable, itโs not entirely up for renegotiation either.
Unless the ongoing deal collapses, outbidding or forgoing certain stipulations wonโt necessarily sway the seller. Typically, sellers are bound by a contract to respect the existing agreement, even if a more lucrative offer emerges.
Why Might a Pending Sale Return to The Market?
While itโs plausible for a pending sale to revert to the market, itโs not always a guarantee. Various factors can cause a real estate transaction to collapse. Here are some prevalent reasons:
Loan Complications
Sometimes, a buyerโs loan might not materialize as anticipated before the finalization of the deal. While many prospective buyers receive mortgage pre-approval before placing an offer, the mortgage isnโt confirmed until it undergoes underwriting.
During this phase, the buyerโs financial details, such as assets, income, and other relevant data, are scrutinized. If discrepancies emerge during this verification, the mortgage might be declined. Additionally, if thereโs a notable shift in the buyerโs financial status, like changes in credit score, assets, or income, it could impede the loanโs approval.
Contracts often encompass a mortgage clause, which denotes the deadline for the buyer to finalize their financing. If the buyer fails to meet this deadline, itโs considered a contract violation. In such scenarios, the seller might opt to relist the property.
Unsatisfactory Property Evaluation
A deal might fall apart if the home inspection reveals significant concerns. This is especially likely if the offer was contingent on a satisfactory inspection. For the property to be relisted due to this, a certified inspector would need to highlight substantial repair or upgrade needs. The deal could break if the buyer declines the sellerโs proposal to address these issues (if presented).
Short Sale Explained
In situations where homeowners face financial hardships, a short sale provides an option to sell their property for a value less than the outstanding loan amount, helping them avoid foreclosure. However, thereโs a catch: The lender must give their consent for a short sale to proceed. If the financial institution doesnโt approve the proposed sale price, the transaction wonโt materialize, and the property will be relisted.
Change of Heart by The Buyer
Unpredictable life events can disrupt planned transactions. A buyer might need to move due to job requirements or might reassess and conclude that the property isnโt the right match. Even though opting out might cost them their earnest money deposit, buyers can still choose to withdraw from the deal. On the off chance that such a scenario unfolds, the propertyโs status will shift from โpendingโ back to โavailableโ on the market.
How Do โPendingโ and โContingentโ Differ in Real Estate?
While both โpendingโ and โcontingentโ statuses signify that the seller has accepted an offer, they have distinct implications.
A contingent sale means the listing remains active because the potential buyer has conditions or contingencies to fulfill before the sale can be finalized. On the other hand, a pending sale suggests that all contingencies set by the buyer have been met, and the sale is on track to be completed soon, barring any unforeseen complications.
FAQ
Does pending mean complete?
No, โpendingโ does not mean the sale is complete. It indicates that an offer has been accepted, and the sale is in the final stages, but it hasnโt closed yet.
What is the difference between pending and accepting backup offers?
While both statuses indicate that an offer has been accepted, โpendingโ means the sale is nearing completion with all contingencies met. On the other hand, โaccepting backup offersโ suggests that the seller is open to considering other offers in case the current deal falls through.
How long can pending last?
The duration of a pending status can vary, typically lasting from a few days to several weeks. It depends on various factors, including the contingencies set forth in the purchase agreement and the efficiency of the involved parties.
How long should I wait for pending?
If youโre a buyer interested in a property with a pending status, itโs advisable to consult with your real estate agent. They can provide insights on the specific situation and guide you on whether to wait or explore other options.
What does pending back up mean?
โPending back upโ means that while the property is under contract with an accepted offer, the seller is still open to backup offers in case the current deal doesnโt close.
In a Nutshell
Just because a property is listed as pending doesnโt mean itโs entirely out of reach. While the odds might not be in your favor, unforeseen circumstances can cause the sale to fall apart, making the property available again. If youโre truly passionate about a home with a pending status, itโs wise to engage with your real estate agent. They can guide you in placing a backup offer or seizing the opportunity if the current deal doesnโt materialize.
