How to Make an Offer on a Pending Sale
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by Richard Morrison
- June 26, 2022
- Buyers
- 0
You’ve found the perfect house and you can already imagine yourself living there. But, when you check out the listing, it says “pending sale.” Is all hope lost? Not necessarily!
Making an offer on a pending sale can be tricky but if done correctly, you could find yourself in your dream home sooner than expected. In this article, I’m going to share from my own experience some tips and tricks that will help you make an offer on a pending sale like a pro – so keep reading!
We’ll cover how to get started by understanding what exactly is meant by “pending sale” and why it matters. We’ll also discuss strategies for getting noticed among other interested buyers while still being respectful of the seller’s situation.
Quick Takeaway: Your real estate agent can contact the listing agent to ask about the deal and show your interest in making an offer. Depending on the circumstances, you may be asked to submit an offer. As an alternative, you can make a backup offer that can be presented if the current agreement is not successful.
Lastly, I’ll provide advice to help you make sure your offer stands out from any potential competition so that you don’t miss your chance at making your dreams come true.
So are you ready to learn about making offers on pending sales? Great – let’s dive in!
What is a Pending Sale in Real Estate?
A pending sale is when a buyer has made an offer on a property and the seller has accepted it. The process of making an agreement between the two parties, including any contingencies, can take several weeks or even months to complete.
A pending sale typically involves the signing of a contract which outlines both sides’ obligations and timelines.
The meaning behind the term “pending” refers to the state of waiting for something to be finalized. In real estate terms, this means that all paperwork must be completed before either party can move forward with closing on a purchase.
During this period, sellers are typically not allowed to accept any other offers from potential buyers until after their current deal has been resolved one way or another.
Understanding the difference between pending and contingent sales is key in understanding how to make an offer on a pending sale.
Understanding Pending vs Contingent Sales
Did you know that about 80% of pending sales end up closing? Before making an offer on a home that is pending sale, it’s important to understand the difference between a pending sale and a contingent sale.
A pending sale means that the seller has accepted an offer from a buyer but the contract has yet to be finalized. The buyer must still meet certain conditions before they officially close on the house such as getting financing approval or completing inspections.
Until these are completed, other buyers can make offers; however, their chances of success aren’t usually very high since most sellers won’t accept any offers once they’ve already gone into contract with another buyer.
On the other hand, when a home is listed as contingent for sale it means that there is an offer in place but it’s dependent upon something specific happening first; for example, perhaps the buyer needs to sell his current property or obtain financing approval before he can purchase this one.
Since contingencies have not been met yet, there may be more room for negotiation and buyers tend to stand a better chance of having their offers accepted than if the property was listed as pending.
Making an Offer on a Home That is Pending Sale – Is it Worth It?
If you’re looking to make an offer on a home that is pending sale, it’s important to understand the process and be aware of any potential risks. The most common way to make an offer on a pending sale is through your real estate agent or broker.
Your agent can present your offer directly to the seller and negotiate with them on your behalf. You should also be prepared to provide proof of financing in order to move forward with the purchase.
- When making an offer, there are several factors that need to be considered including price, closing costs, and contingencies such as inspections or repairs.
- To get the best deal possible, it’s wise to do some research regarding market values so you have an idea of what you’re willing to pay for the house being sold.
- Additionally, if you’re competing against other buyers then having pre-approval from a lender will give you more negotiating power.
Understanding all aspects of the pending sale process will help ensure that you end up with a successful transaction!
How Long Does a Pending Sale in Real Estate Typically Take?
Making an offer on a pending sale can be like walking in the dark – you never know how long it will take to get where you’re going. The timeline for a pending sale varies and depends upon many factors, including the negotiation process between buyers and sellers. Here are some key points to consider when estimating your own pending sale duration:
The Pending Sale Process – Before any offers can be made or accepted, all parties must agree on the details of the transaction. This includes price, terms of payment, contingencies, deadlines, etc. Depending on how complex this negotiation is, this step may take anywhere from days to weeks before there is finally an agreement.
- Pending Sale Duration – Once negotiations have been finalized and both buyer and seller sign off on the contract documents, the pending sale wait time begins. Generally speaking, most offers become final within 30-45 days after signing but could take up to 60 or even 90 days depending on certain conditions being met.
- Pending Sale Negotiation – If either party decides they would like to renegotiate during this period (which is fairly common) then that timeframe could be extended by several additional days as both sides work out new agreements.
- Legal Requirements – There may also be delays caused by external legal requirements such as title searches, lien checks or other paperwork related issues which need to be completed prior to closing escrow.
Overall, making an offer on a pending sale requires patience and flexibility as no two transactions are exactly alike and there can always be unexpected hurdles along the way.
Now that we understand how long a typical pending sale might take, let’s look into what are some of the reasons why a deal might fail?
Common Reasons for a Failed Pending Sale and How to Avoid Them
Making an offer on a pending sale can be tricky. A pending sale means that the seller has accepted an offer from a buyer and gone into contract, but hasn’t officially closed yet. If you’re interested in making an offer on a house that is already pending, there are some things to consider before doing so.
First of all, you need to understand why the pending sale may have failed. There could be several reasons for this; it could be because the appraisal came back lower than expected, or the buyers couldn’t get financing approved due to credit issues.
It’s important to know what happened with the initial buyers’ situation so that you can determine if your own offer will stand a chance at being accepted by the seller.
You should also research other similar properties in the area to make sure any price adjustment isn’t too steep for the market conditions.
Once you’ve done your research, it’s time to submit your offer. Keep in mind that sellers usually accept offers from buyers who don’t ask for many contingencies or repairs since they want a fast closing process. Be prepared to move quickly and make sure you provide proof of funds or pre-approval documentation when submitting your bid.
This way, you’ll put yourself ahead of any potential competition and increase your chances of success with your offer!
Can You Still Put an Offer on a House That is Already Pending Sale?
Putting an offer on a house that is already pending can be tricky, but it’s not impossible. When you make an offer during the pending sale process, there are certain steps that need to be taken in order to ensure your offer is accepted.
| Step | Description |
|---|---|
| Find out when the Offer Accepted Date is | This date is typically set by the seller and determines when any additional offers will no longer be considered. |
| Submit Your Highest and Best Offer | Make sure your highest and best offer is competitive so yours stands out among all others submitted. |
| Follow Up With The Listing Agent | Contact the listing agent as soon as possible after submitting your offer to follow up on its status. |
| Get An Answer | If your highest and best offer isn’t selected, don’t get discouraged; keep trying for other homes! |
| Close The Deal | Once you have been informed of acceptance, complete the closing process with all necessary documents in order to secure the home. |
Making an offer on a house that’s already pending can certainly work in your favor if done correctly; however, it’s important to understand what goes into this process before making such a decision.
It’s essential to do research ahead of time in order to determine how likely it is for an offer made during a pending sale period to successfully close on a home.
Knowing each step involved and being aware of market trends will help increase your chances of success while putting forth an offer during this timeframe.
Secure a Home During the Pending Sale Process
Securing a home during the pending sale process may seem like an impossible task, but it’s actually not as daunting as you might think. For savvy homebuyers looking to score a great deal on their dream property, understanding how to make an offer on a contingent house is key.
A contingent house is one that has already been listed for sale and someone else had made an offer on it. The seller must accept or reject the offer before any other offers can be considered; however, in some cases buyers are able to make secondary offers that may supersede the existing one (if accepted by the seller).
This means that even if there’s already an offer on a property of interest, inquiring about making another offer could pay off. It never hurts to ask since sellers will always consider better options!
In this situation, working with experienced real estate professionals who understand the nuances of the sale process can help keep your best interests top-of-mind.
They’ll provide guidance throughout each step of the process so you know what to expect – from writing up your offer through closing day and beyond. With their assistance and advice, you can confidently move forward with securing your dream home despite any pending sales along the way.
What is a Contingent House in Real Estate?
Now that you know how to secure a home during the pending sale process, let’s take a look at what is known as a contingent house. A contingent house refers to a property for sale with an accepted offer, but it has not yet closed or gone through escrow.
When someone submits an offer on a contingency-based home, they are essentially contracting with the seller that certain conditions must be met before the contract can move forward and close. These conditions could include passing inspection, obtaining financing, selling another property, etc., and all parties involved in the transaction agree to this agreement before closing.
When making an offer on a pending sale of a contingent house, make sure to consider any contingencies the seller may have outlined in their listing such as specific terms regarding fees or repairs. You should also keep in mind that if your offer is accepted while other offers are still being considered by the seller there is no guarantee your offer will be honored until all approved contingencies are fulfilled and both buyer and seller sign off on them.
Once you effectively understand common contingent statuses and definitions, you’ll be ready to make an informed decision about whether or not submitting an offer on a contingent house is right for you.
Common Contingent Statuses and Definitions in Real Estate Transactions
When making an offer on a pending sale, it’s important to understand the different contingent statuses and definitions. A contingent offer is when there are certain conditions that must be met before the contract can become binding.
This could include financing contingencies, inspection contingencies or buyer contingencies. Financing contingencies allow buyers to back out of a deal if they cannot obtain the necessary loan for the purchase. Inspection contingencies give buyers the right to have their property professionally inspected prior to closing so they can make sure there aren’t any major issues with the home.
Lastly, buyer contingency lets them walk away from a sale if they don’t find another suitable property within a specific number of days or weeks.
These kinds of offers can be beneficial for both parties involved in the transaction as it gives them peace of mind knowing that there won’t be any surprises down the road.
However, sellers should be aware that these types of offers may take longer to close than traditional ones since all contingencies need to be addressed before signing off on anything.
It’s also important to note that some states have laws in place regulating how long each contingency period lasts and what happens if either party fails to meet those deadlines. Knowing this information ahead of time will help you negotiate better terms and avoid potential conflicts in the future.
Frequently Asked Questions
How Much Money Should I Offer On A Pending Sale?
Have you ever wanted to make an offer on a pending sale, but weren’t sure how much money to offer? Well, don’t worry. I’m here to help! When it comes to making offers on pending sales, there are many factors that need to be considered when deciding the amount of your offer. This includes things like low-ball offers, negotiating tactics, and closing costs.
When determining what kind of offer to make on a pending sale, you should consider the current market value of the property as well as any competing offers that may be in play.
Additionally, it’s important to remember that even if the listing price is above or below market value, there are still other expenses involved in buying a home (e.g., closing costs).
Before putting together an offer package for a seller, do some research into local market conditions and familiarize yourself with standard real estate practices in order to get the best deal possible.
It can also be helpful to consult with a professional real estate agent who can advise you on the most effective strategies for getting a good deal.
They have experience dealing with these types of situations and can provide invaluable insight into crafting a winning offer package and navigating negotiations successfully.
Ultimately though, it’s up to you decide how much money you’re willing to put down for an offer – so take your time and weigh all your options before coming to a decision.
How Do I Negotiate On A Pending Sale?
Negotiating on a pending sale can be tricky. You want to offer enough money so that the seller will accept, but you don’t want to overpay. It’s important to research the market and know what kind of price range is reasonable for similar properties in the area. This way, you’ll have an idea of how much discount offer you should make.
When negotiating, it’s also helpful to understand the different tactics you could use.
For example, if there are closing costs involved, you may be able to negotiate those either being waived or reduced.
Or perhaps you can suggest other terms such as covering repairs or adding additional services like landscaping or interior design work into your acceptance rate agreement.
Knowing which negotiation strategies work best for particular situations can help maximize your chances of getting a good deal.
No matter what approach you take when making an offer on a pending sale, always remember that communication is key!
Asking questions and staying open-minded during negotiations can go a long way towards reaching an agreement that both parties find satisfactory – because at the end of the day everyone wants their property sold quickly and without any issues arising afterwards.
So do your homework and prepare yourself for successful negotiations; this will increase your chances of walking away with just the right deal!
Will The Seller Consider A Low Ball Offer On A Pending Sale?
Low balling a pending sale can seem intimidating, but it doesn’t have to be. If you’re thinking about making an offer on a pending sale, there are several ways you can negotiate with the seller and maximize your chances of getting what you want. With some knowledge of how sales negotiations work, you can make sure that the seller considers your offer – even if it’s lower than they expect.
When negotiating for a pending sale, lowballing is often seen as a risky move because it could alienate the seller or jeopardize the entire deal.
However, if done correctly and respectfully, lowballing can actually be beneficial to both parties involved in the transaction. Knowing when and how to approach lowball offers is key to successful sale negotiations.
The most important thing is to understand why the seller may accept a lower price: perhaps their circumstances have changed since initially listing the home or other buyers haven’t expressed interest in purchasing at full market value.
Whatever the reason, being mindful of these details will help ensure that your offer isn’t dismissed out of hand.
At this point, it’s also essential to keep communication open between all parties throughout the process so everyone knows where they stand and can come to an agreement that works for both sides.
Lowballing is not necessarily frowned upon; rather, sellers appreciate honest negotiation from potential buyers who present well-reasoned offers backed up by research and data analysis regarding comparable properties in their area.
By taking steps like these before submitting an offer, you increase your chances of having your proposal considered by the seller – which ultimately leads to better outcomes for all those involved in the transaction!
What Is The Average Timeframe For Closing On A Pending Sale?
When it comes to making an offer on a pending sale, one of the most important things to consider is the average timeframe for closing. Knowing how much time you have to close will help you determine whether or not your offer is accepted by the seller.
Generally speaking, there are several factors that can influence the amount of time needed to close on a pending sale, such as paperwork processing and inspection times. On average, it usually takes between 30-45 days from when an offer is initially accepted until the sale closes.
However, this timeline can vary depending on individual circumstances and other details involved in the purchase process. For example, if both parties need more time to review contracts or documents related to the transaction, then it could take longer than expected for the deal to be finalized.
Additionally, some lenders may require additional information or documentation before allowing buyers access to financing which can also affect the overall timeline for closing a pending sale.
In order to ensure that everything goes smoothly during your pending sale experience, make sure you have all necessary documents reviewed and ready ahead of time so that any potential delays with paperwork processing don’t cause unnecessary stress or frustration down the line.
To get a better idea of how long it will likely take for your specific situation, speak with knowledgeable professionals who can provide guidance and advice throughout each step of the way – including understanding typical timelines associated with sales closings!
Are There Any Benefits To Making An Offer On A Pending Sale?
Making an offer on a pending sale can be a great way to get the home of your dreams at an unbeatable price. But what are the benefits of making such an offer?
This article takes a closer look at how you can benefit from making an offer on a pending sale and why it’s worth doing so even if there is already a set closing timeframe in place.
One major advantage of making an offer on a pending sale is that it allows you to save money. If the seller has accepted another buyer’s offer but hasn’t yet closed, they may still be open to offers—especially if yours is lower than theirs.
That means you could potentially score significant savings by submitting a lowball offer. Even though you’ll likely have less time to negotiate than usual due to the pre-set closing timeframe, chances are good that you’ll still be able to secure some kind of discount or concession if you act quickly enough.
Another potential benefit of making an offer on a pending sale is that it puts you first in line should something go wrong with the original deal.
For example, if the other buyer fails to meet their end of the agreement (e.g., fails inspections or withdraws financing), then your offer would become active and give you priority access to purchasing the property before anyone else does.
So while there might not be much wiggle room for negotiating upfront, your offer could give you peace of mind knowing that you’re protected if things don’t go as planned with the initial purchase contract.
Ultimately, whether or not it makes sense for you depends largely on how motivated both parties are and how long their respective timelines are for closing the deal.
However, given all the possible advantages – including saving money and having better protection against unexpected delays or roadblocks – making an offer on a pending sale can definitely be worth considering!
Conclusion
Making an offer on a pending sale can be daunting, but if you do your research and arm yourself with knowledge of the market, it doesn’t have to be.
Taking the time to understand what’s involved in negotiating a pending sale will help ensure that you get the best deal possible.
Keep in mind that there are benefits to making an offer on a pending sale – like potentially getting more for less or avoiding bidding wars – so don’t let fear stop you from striking while the iron is hot! After all, even though buying a home may seem intimidating at first, it can also bring immense joy and satisfaction when done right.
So take your time, dot your i’s and cross your t’s, and make sure you throw down some real estate savvy when making an offer on a property that’s already been marked as ‘pending’. Good luck out there!
Sources:
https://torontosun.com/2016/07/18/failed-agreements-of-purchase-and-sale-what-happens-next
Ready to turn your real estate dreams into reality? Contact Richard Morrison, Vancouver’s top realtor with 20+ years of experience. As a Medallion Club member and RE/MAX Hall of Fame award winning agent, he’s the expert you need on your side. Whether buying, selling, or investing, Richard’s personalized approach and deep market insights ensure a successful transaction. Reach out to Richard today at (778) 900-2235 and make your real estate journey seamless and rewarding.
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