Understanding the Real Estate Market
When it comes to buying a house, timing is everything. The real estate market can be competitive, and houses can sell quickly. It’s not uncommon for a house to go under contract or become “pending” within days of being listed. But what does it mean when a house is pending? And more importantly, can you still make an offer on a house that is pending?
The Meaning of “Pending”
When a house is marked as pending, it means that the seller has accepted an offer from a buyer, and the sale is in progress. The house is essentially off the market, and the seller is no longer accepting offers. However, this doesn’t mean that the deal is set in stone.
Contingencies and Backup Offers
Even though a house is pending, there may still be contingencies in place that could cause the deal to fall through. Contingencies are conditions that must be met before the sale can be completed. For example, the buyer may need to secure financing or complete a satisfactory home inspection. If any of these contingencies are not met, the buyer may back out of the deal, and the house will be back on the market.
As a buyer, you can still make an offer on a house that is pending, but it would be considered a backup offer. A backup offer is a secondary offer that will only come into play if the primary offer falls through. If you decide to make a backup offer, you should be prepared to wait and see if the primary deal falls apart.
The Pros and Cons of Making a Backup Offer
Pros:
1. Increased chances of getting the house: If the primary deal falls through, your backup offer puts you in a strong position to secure the house.
2. Potential negotiation power: If the seller knows they have a backup offer, they may be more willing to negotiate on price or other terms.
3. Less competition: Since the house is already pending, there may be fewer buyers interested in making an offer, giving you an advantage.
Cons:
1. Uncertain timeline: Making a backup offer means you’ll have to wait to see if the primary deal falls through, which can be unpredictable.
2. Emotional investment: You may become emotionally invested in the house, only to have the primary deal go through, leaving you disappointed.
3. Wasted time and effort: If the primary deal doesn’t fall through, your time and effort spent on the backup offer may be in vain.
Strategies for Making a Backup Offer
1. Act quickly:
As soon as you find out that a house you’re interested in is pending, reach out to your real estate agent and express your desire to make a backup offer. Time is of the essence in these situations.
2. Make a strong offer:
Since you’ll be competing with the primary offer, it’s important to make your backup offer as attractive as possible. Consider offering a higher price or more favorable terms to entice the seller.
3. Stay engaged:
Keep in touch with your real estate agent and stay informed about the status of the primary deal. If it appears to be falling through, you can adjust your backup offer accordingly.
4. Be patient:
Waiting for a backup offer to come into play can be a test of patience. It’s important to weigh the pros and cons and decide if it’s worth the wait for you.
Conclusion
While it is possible to make an offer on a house that is pending, it is essentially a backup offer that will only come into play if the primary deal falls through. Making a backup offer can be a strategic move, but it also comes with its own set of risks and uncertainties. If you’re considering making a backup offer, it’s important to consult with a real estate professional who can guide you through the process and help you make an informed decision.
