Sale Pending: What Does That Mean?
Finding the right property can sometimes be a time-consuming process. Then, just when you find the right one, your agent tells you it’s pending. While the news is disheartening, it’s important to understand exactly what it means — as well as other terms typically used for property status.
Generally speaking, a pending status on a home means that a sale is moving forward. In real estate, however, there are many complexities to this type of deal that shouldn’t steer other buyers away from the property they’re interested in.
Some sale offers are accepted but have contingencies with them, which could even mean the seller will still consider other offers. When this type of offer is on the table, it’s likely that the current buyer is wanting assurance to one or an array of things. This can be anything from a buyer still having to sell their home, obtaining a bridge loan, home or pest inspections, and even structural or mold inspections. Usually, you’ll find these properties listed as “active contingent.” These properties are still worth pursuing — especially if it’s the perfect home. Contingency offers do fall through more often than not. Thus, most sellers are a bit reluctant to accept an offer with a contingency.
With a sale pending, usually the offer has been made and accepted — the buyer and seller are then working towards closing. It’s important to keep in mind that there are times when even a sale pending can fall apart. Here in California, a standard real estate contract gives buyers 17 days to gather all inspections. During that time, a buyer can back out of the contract for any reason. Most likely you’ll find that the home inspection didn’t go as planned. Another reason a deal may fall through is when the appraisal comes in lower than the asking price — meaning the buyer has to make up the difference or the seller has to reduce the price.
When in doubt, speak to an agent if you find a property that feels right but has a pending offer. A licensed real estate agent can make an inquiry and give you the details. From there, you can decide on whether it’s worth pursuing or moving down the list.
For more on this subject read our blog, “Common Real Estate Terms and What They Mean.”
Thinking of buying or selling a home in the La Jolla area? As consistent top producers in real estate, Linda Daniels and The Daniels Group are your La Jolla housing specialists. Our team of local experts will ensure that you have a successful real estate transaction. Call us today at (858) 361-5561 or email us anytime by clicking here.