If you're wondering if it's possible to buy a pending sale home, then you've likely found the perfect place but learned it's under contract. This is a common situation in a hot market like Maricopa County, where current conditions favor sellers. In fact, homes priced under $200,000 are receiving a lot of attention -- so much, multiple offers are not unusual. After you've patiently saved money for a down payment, good faith deposit, inspections, moving expenses, and meticulously kept your credit file clean, you're disappointed the house you like most is a pending sale. But don't think it's over, you do have a chance.
How it’s Possible to Buy a Pending Sale Home
The good news is the transaction has not closed. While that might not sound like much of a comfort, it is. A little known fact to the public about real estate market equilibrium is its effect on transactions. In a balanced market between buyers and sellers, which is 6 months worth of inventory, approximately 10 percent of all pending transactions fail to close. However, this percentage increases five times in a seller's market or one that favors sellers.
So you’re perusing listings and finally you find it: Staring back at you from your laptop screen is the perfect place you’ve been dreaming about. It’s in the right location, has all the amenities you’re looking for, and still, somehow, fits in your budget. There’s just one problem: It’s pending sale. Does that mean you’re too late? Is it entirely hands off? Or do you still have a shot? The short answer: If a home you love is pending sale, don’t give up hope. --Realtor.com
That means, about 50 percent of all pending transactions do not finalize. Common reasons for failure to settle are financing troubles, appraisal values in relation to agreed sales prices, issues revealed in home inspections, cold feet, sudden changes in circumstances, and more. If you really want a shot at owning a property, you've got to take immediate action. Here's how it's possible to buy a pending sale home:
- Contact your agent as soon as you can. A popular practice in real estate is continuing to market a house even if it's under contract. No, this isn't the agent or broker playing bait-and-switch with other qualified buyers, it's simply a reflection of an industry reality. Because it is common for pending sales to fall through, the listing agent will market the property until it closes. Contact your agent to let her or him know your interest.
- Get in touch with the seller's agent, also. Once you've spoken with your agent or broker, it's time to let the seller's agent know your interest. The listing agent will be happy to accommodate a backup offer. The seller will also appreciate having more peace of mind and to learn the property is attracting serious interest.
- Submit the strongest purchase offer possible. Now, you've got to submit a purchase offer as a backup, but only do so when you know the details of the pending offer. This could mean dropping one or more contingencies, bringing a larger good faith deposit and/or down payment, or giving the seller a loose closing timeframe.
- Be the go-to back-up buyer and ready to move forward. If you are given the opportunity to exercise your backup purchase offer, you should honor any concessions and/or promises. You'll have to be ready to deposit earnest money and move forward with the transaction.
If you are in the market to buy a home and looking nearby West San Miguel Avenue, North 184th Drive, West Georgia Avenue, Perryville Road, in the Savannah community, or elsewhere in Litchfield Park give us a call today. We’ll help you with your home search to find the property that fits your needs.