What does 'Sale Pending' Mean and Should I Still Make An Offer?
Sometimes, when you are house hunting, you discover the perfect home only to be dismayed when you find out there is a sale pending on the home. Hope is not always lost, and in some cases you can still get a contract on the home of your dreams.
Meaning of 'Sale Pending'?
A house with a pending sale basically means that there is a contract to buy that property and it is close to settlement. However,there are still things which may go wrong and cause the cancellation of the contract, such as the buyers changing their minds,job loss of the mortgagee, rejection of a mortgage loan and contract contingencies which fall through.
What Are the Reasons a House Sale Falls Through?
The most common cause of a contract falling through is actually buyer’s remorse. Occasionally the buyer backs out of the sale at the last moment because they have changed their minds, received a sudden job transfer, or had a change in circumstance. When this happens, the buyer may forfeit the deposit on the home. When the buyer refuses to proceed with settlement, the property is placed back on the market.
A mortgage loan can fail because circumstances described in the initial application do not agree with the loan being made. It may have included information that was not listed on the original application, or the applicant may have made further purchases on credit after applying that have not been taken into account.
Contract contingencies can also be a problem when a homeowner is trying to sell their own home in order to qualify for the new house on which they have a contract. At times, they cannot go to settlement because their original house sale has fallen through or has not gone to settlement itself.
In addition, the house may fail inspection or require expensive repairs that were undisclosed or unknown of at the time of contract, and the seller is unwilling to make repairs or provide a credit to the buyer to have the work done. In this instance, the pending sale would be cancelled and the property would go back on the market. The appraisal on the home in some instances will come in lower than the asking price. When this happens, there are several things that can be done. The seller can lower the price of the house. The buyer can pay cash for the difference or take a second mortgage to make up the difference, or another appraiser can be called in. In the event neither the buyer nor seller is willing to compromise, the pending sale will become null and void and again, the house will be placed back on the market.
What Is 'Sale Pending Without Contingencies'?
What this means is that every obstacle to signing the final papers to buy the home has been removed, including mortgage approval, inspections and appraisal. Unless the buyer decides against it, the property will go to settlement.
Should I pursue a sale pending home?
One of the nice things about searching for that perfect family home is that when one that you thought was perfect is lost to another buyer, another house just as good or even better always seems to pop up on the market. While you can follow the progress of the sale-pending house, odds are good that the buyer is going to close on the property, and it is a legally binding contract. However, it does not hurt to speak to your agent and let them know of your interest in the property, so if something should happen to interfere with the sale, they already know of your interest. Additionally, one of our local real estate agents may know of similar properties that might interest you even more.
If you have any questions about buying or selling Sarasota real estate, please "Ask An Expert." Don't hesitate to contact the team at Key Solutions Real Estate Group for assistance, or call (941) 894-1255.