Meaning of a pending status
Buying a house is always stressful and time-consuming. Without proper guidance and know-how skills, you may not be able to find the house of your dream. Knowing listing statuses and what they mean can make a huge difference in your house-hunting process. One status you will come across is a pending status. As noted by Rocket Homes, a pending status means that the seller of the house has received an offer on the house. However, the sale has not been finalized yet.
Reasons for a pending status
The pending status will be used when the seller received an offer on the house. This status does not imply that the house is sold.
There are terms that must be met before the sale is finalized. One of these terms is the house inspection which will be performed by a professional home inspector. The inspection is needed to make sure that the house has no major problems such as electrical and plumbing issues, structural problems, a leaky roof, etc.
Once the inspection is over, the inspector will present his findings to the buyer. The buyer can then proceed with the sale, renegotiate the terms, or walk away from the deal.
The other reason a house could have a pending status is when it is subjected to contingencies. For example, before the seller signs the sale and purchase agreement, a homebuyer must provide proof that he/she has the money to buy the house. Those who are buying the house with cash must provide proof of cash needed to buy the house plus all related charges such as closing costs, fees, etc.
What if you are buying a house using a mortgage?
If you are buying a house using a mortgage, you must provide a mortgage commitment letter from the mortgage lender, before the sale is sealed.
Mortgage lenders give a pre-approval letter to borrowers that they use for house hunting. After finding the house, a mortgage commitment letter will be required before the seller signs any sale documents. In order to provide the commitment letter, however, the lender will inspect the house, have an appraisal conducted, make sure that the seller has a title to the house, etc.
How to buy a house with a pending status?
What if a house of your dreams has a pending status? Should you let it go? How can you buy a house with a pending order?
As a buyer, you must understand that a pending status does not mean that the house is sold. If the sale does not go through, the seller will change the status from pending to active status and sell the house to someone else. Some sellers also take backup offers since there is no guarantee that the sale will proceed.
The following are some of the steps you can take to buy a house with a pending status.
1. Talk to your agent
The first thing you need to do when you find a dream home with a pending status is to talk to your agent (buyer’s agent). There is nothing wrong with asking your agent about submitting an offer on the house.
Your agent is also a perfect person to communicate with because he/she is the one representing you, and therefore, it will be easy for him/her to connect you with the seller’s agent and the seller.
2. Contact the seller’s agent
If you are interested in a pending house, contact the seller’s agent. He/she will be able to give you the nature of the status and alert you if the sale does not go through.
The main job of agents is to make sales and repeat the process. This is how they make money. If the current buyer is reluctant and taking longer; the seller’s agent could recommend selling the house to other interested buyers. Hence, increasing your chances of getting the house.
3. Express your interests in the house
Should you get a chance to talk to a team that is selling the house; make sure that you express your interest in the property. Tell them that you love the house and it is your dream to own it.
At the end of the day, we are all driven by emotions. If the seller can get the money he/she wants and make a difference in someone’s life; he/she could consider a second offer.
The more you convince the selling team about your interest, the higher your chances to get the house.
4. Get your finances ready
Having cash to buy the house will definitely make you a winner in this game. However, if you cannot have that much cash, make sure that you can secure the mortgage as soon as possible. Having a down payment, closing costs and money to cover fees and other charges will be a good idea. You will increase your chances of buying the house by being more prepared than the current buyer.
5. Offer more money
Although you should not pay more than you are supposed to, giving the seller more money than the offer on the table could be a good idea.
You should work with your agent to come up with a reasonable offer that will convince the seller.
