Detailed info about “Sale Pending” and tips on how to buy such property
The term sale pending refers to that a buyer is moving his or her property towards after removing all contingencies. You might have come across those sale properties labelled pending sticker. It is an indication made by the seller of the home before the property gets listed on the internet.
Many buyers misconceive that the term “sale pending” denotes that the home is no more available. But that may not always be the reason. If a “sale pending” home seems to be more appealing to you, not necessarily rule out still give a try understanding whether it’s worth pursuing.
Know about ‘contingent upon’ and ‘subject to’
Through understanding the term sale pending, you can know better about how a real estate deal works in practice. A purchaser makes a deal “subject to” a property inspection, a full loan approval or a bank appraisal. In some instances, they go for “contingent upon” deal, which means on the sales of their present home.
In case if the buyer finds it difficult to get finance, they sell their current house or through resolving a problem from the home inspection with the seller or even the buyer may exit the contract, subject to one among those terms.
A property labelled for sale still already in a deal
In a few instances, the realtor may label a house with some contingency such as “active continue to show” or “active with conditions”, facilitating other agents and buyers to understand that the seller of the house is still entertaining other offers.
During such scenario, the seller may not be possible to get into an agreement with another buyer, still the sale is said not to be a “done deal”. It remains as a backup offer and if in case the first offers failed, they can go ahead with the backup offer.
Sale Pending house with no contingencies
A transaction is considered to be a truly pending one in which the purchaser has removed all sorts of contingencies. The purchaser is “locked in” in order to buy the home. The final move is closing, which generally take a few days to a week’s time.
Most real estate agents will not label a home as pending until they are done with sales deal closing. In this scenario, the sale is pending for the final closing. Even though it is possible for a buyer to walk out from the contract after removing all contingencies, but they are likely to lose the earnest money deposit.
Understand the property’s status
To know about the potential opportunity and give some leverage to the seller, your agent can ask them about the inspections made by the buyer and regarding any other issues. This helps you to know about the current deal. It is not good to develop hopes on just seeing a real estate of your dream labelled “sale pending”. Instead, you put your choice of home on the burner and follow the sale.