What Does “Pending” Mean in Real Estate
Whether you are selling or buying, being informed is an important piece of the real estate game. Team French is your guide to Gold Country living, and that includes educating you on the real estate process. When searching for a home, it’s not uncommon to see a house or property listed in pending status. So, what does “pending” mean in real estate? Let us help answer your questions.
What is Pending Status?
A house will be listed as pending when a seller accepts an offer from a buyer and gets into contract with escrow being opened.
Typically, a house in pending status includes a contractual relationship between seller and owner. However, pending certainly isn’t the same as sold. Once a house is listed as pending, there are many steps still to be taken before it is sold such as contingencies, inspection, appraisals, and financing amongst others. Depending on what these steps are, the pending status can last a few weeks to a couple of months. Buyers can cancel contracts during this period and a few do for various reasons having nothing to do with the home or their feelings about the home.
What Does Pending Mean for a Buyer?
So, what happens if you see a house you love that is in pending status? For starters, call your realtor to find out more information. Team French will do the legwork to find out more about the house and its status and how likely the seller’s agent feels the contract will go through.
Like we said, pending status is not the same as sold. All hope is not lost yet. You could always write a backup offer on the home. A first-place backup offer means that you negotiate the offer and price, produce your preapprovals from your lender, or proof of funds if making a cash offer and your offer is basically “accepted” by the seller contingent on the first offer being canceled.
If the offer gets canceled, your offer immediately moves into contract. During the time you are in that status of waiting you can always cancel the backup offer if you want to make an offer on another home. No harm, just takes a little extra time to write the offer but always worth a try.
Of course, if you are the potential buyer on a pending home, work diligently to complete the contingencies you arranged with the seller. Especially if there is a backup offer. And in the same regard, your backup offer can often keep the current buyer in line and perform better so the seller does not refuse a negotiation on repairs or price knowing that they have more leverage because of the backup offer.
What Does Pending Mean for a Seller?
Your realtor has helped you navigate the waters of negotiating and accepting an offer. Now, your house is in pending status. As the seller, you now have two important roles. The first is to complete any repairs or other contingencies you agreed to with the potential buyer. The second is to be mentally prepared for any outcome. From here, your pending house could progress to sold or the sale could fall through and go back on the market. If your pending sale does not work out, don’t lose hope or feel discouraged. This is not completely uncommon and Team French is going to do everything possible to get your house sold quickly.
How Can Team French Real Estate Help You?
With experience and know-how, Team French is your guide to all things real estate in the Gold Country. Rest assured, you are not alone in the throes of buying and selling a house. Let us help you with the nitty-gritty details of pending status and beyond. Contact us today to learn more about the buying and selling process. We will help you turn pending status to SOLD when it comes to Calaveras, Amador, and Tuolumne county real estate.