A pending home sale is a property that has been placed under contract by the buyer and has yet to be completed. The terms of the sale have been agreed upon, but certain conditions must still be met before the transaction can go through. During this time period, contingencies may need to be removed or additional information may be requested from the seller.
The main reasons why a property would go into pending status are because of financing issues, appraisal issues, inspections, or other contingencies not being met. Once these conditions are resolved or waived, the sale will usually close within 30-60 days. This timeline is called escrow and generally holds no surprises for either party involved in the transaction.
As with any real estate transaction, it’s important to understand the process of a pending home sale before making an offer. By getting acquainted with its key features and timelines, you can work toward securing your new property with confidence.
There are many reasons why a property may be placed into pending status during the home buying or selling process. Typically, these conditions must be cleared in order for the transaction to move forward.
Here are some common reasons:
– Financing issues: Buyers may need to provide additional information about their down payment or get pre-approved for a loan before being placed under contract. In some cases, buyers will have already obtained financing prior to submitting an offer on a property. However, they may need to provide updated documents or financial assurances in order to finalize the sale.
– Appraisals: When a property is purchased using financing, an appraisal will be performed to ensure that the value of the home is high enough to cover any outstanding mortgage debt. If there are concerns about the appraisal coming back lower than expected, negotiations may ensue between buyer and seller while they wait for additional information.
-Inspections: In addition to appraisals, buyers may choose to have inspections performed on the property in order to identify and address any potential issues with it before closing on the sale. Depending on what comes up during these inspections, further negotiations with the seller may be necessary in order to finalize the purchase of a property.
In some cases, sellers may also use a pending home sale as an opportunity to secure a backup offer. If the terms of the initial contract are not satisfactory to them, they may choose to accept another buyer’s purchase agreement and end negotiations with their original buyer before any contingencies have been removed or inspection issues have been resolved.
While pending transactions can be stressful for buyers and sellers alike, there are many potential benefits that come along with it as well. For example, if the sale does fall through for whatever reason, the property will still remain on the market without having gone through escrow. This means that any additional offers that come in during this time period could potentially lead to better terms for either party involved in the transaction.
Overall, it’s important to stay informed about all aspects of the pending home sale process in order to make informed decisions about your purchase. By familiarizing yourself with its key timelines and features, you can ensure that your new property is a good investment for years to come.
As with any real estate transaction, it’s important to be aware of the process behind a pending home sale before making an offer on a property. This will help to give you a clearer idea of what to expect during escrow, as well as how best to navigate any potential issues that may arise throughout this period. Some of the most common reasons that a property might go into pending status include financing issues, appraisal concerns, inspection requirements, or other contingencies not being met.
Once these conditions have been addressed and the sale has entered escrow, you will typically have two to three weeks to complete any remaining steps of the transaction. These may include providing updated financial information, clearing up any concerns with appraisals, or inspecting the property for issues that need to be addressed prior to closing.
In addition to these typical steps of a pending home sale, some sellers may choose to use this period as an opportunity to secure backup offers from other potential buyers in case the original purchase agreement falls through for whatever reason. If certain terms of your offer are not acceptable to them at this point, it is within their rights as sellers to accept another buyer’s offer and end negotiations with you instead.
Now if you home was pending and for what ever reason the buyer backed out and you are close to the timeline that you need to sell you home then you should consider reaching out to a Real Estate Investor. One of the things they are good at is buying a home fast and with cash. So if time is of the essence for you and you live in the New Braunfels Texas area reach out to Houses 4 Texas LLC at 210-610-0912. They buy houses quickly and have been assisting home sellers for years and have helped people through challenging situations.