There is no better feeling than discovering a property that meets all of your criteria after months of looking. Unless its status changes to “sale pending” prior to your opportunity to submit an offer. You must have missed your opportunity given that.
No, not always. Even while a pending sale is a setback, it doesn’t always rule you out of competition. Here are some explanations of what it means when a sale is still pending and how to submit an offer on a pending property.
Does “Sell Pending” Imply “Sale Completed”?
A pending sale indicates that the seller has accepted an offer from a buyer, yet in real estate, no agreement is official until the contract is signed. They have agreed to sell to that buyer at this point, both morally and legally, and they will close on the deal provided that the contract’s conditions are satisfied.
Although there are no hard-and-fast laws governing legality, it is typically considered poor manners for a seller to withdraw at this point in the negotiation without a very good cause, and they risk severe financial and legal repercussions if they do. This implies that while you may still make an offer, it won’t be seriously considered by the seller unless it is sufficiently high to cover any damages they may have to pay the present bidder.
The submission of an offer during the attorney review time is one exemption. Normally lasting five business days after an offer is accepted, both parties have the opportunity to have their legal counsel analyze the agreement, make any necessary adjustments, or cancel it entirely without incurring any costs. If you make a particularly alluring offer at this point, it’s feasible that the seller may reject the one that is already on the table and accept yours instead if you do.
Is A Pending Sale The Same As A Contingent Offer?
The real estate negotiating process is represented by these two statuses as two distinct phases. A contingent offer is one that the buyer makes that is only valid if certain conditions are satisfied, such as the home’s repairs or the buyer’s sale of their present residence. A home’s “contingent” status indicates that the seller has accepted a contingent offer. When the conditions are satisfied, the status becomes “pending,” and the transaction continues as usual.
Before the contingent offer is accepted, you might try to make an offer. Because contingent offers have a higher chance of failing, you’ll be the first in line as a backup if you have a strong offer or one without conditions.
What Can Stop A Pending Sale From Happening?
There are a lot of things that may happen on both sides to halt a pending transaction outside of the attorney review period, during which any side may withdraw for any reason. The buyer may morally and legally terminate a contract if the house fails an inspection. The buyer may also back out if the seller declines to address a sufficient number of the problems on the contingency list after the home is inspected.
What Choices Do You Have?
Your real estate agent should get in touch with the seller’s agent as soon as possible in a pending sale. They’ll be able to let you know whether the seller is adamant about the present offer and what factors could cause them to consider your offer instead. The listing agent may encourage you to submit an offer depending on the circumstances.
Despite the fact that you shouldn’t submit an offer until you receive an invitation, you should express your interest. Depending on the market, the seller’s agent could continue to show prospective purchasers the home until the transaction is sealed in case the sale doesn’t go through. If you do submit an offer, stay within your means while enticing the seller with more closing costs coverage, a quicker closing date (ask your lender about expediting closing), or a rent-back arrangement.
Another choice is to address a handwritten note to the seller describing your likes and dislikes of their house. This strategy may be sufficient to influence a seller your way in some unique circumstances.
Don’t be scared to be aggressive because you have nothing to lose and everything to gain at this point. Contact the seller and the agent frequently. Be kind but firm. You may be the next person in line to purchase the home if the buyer starts to procrastinate.