Can I Make an Offer on a House That Is Pending?

When a home has an accepted offer, it often appears with a “pending” status, leading many potential buyers to believe their opportunity to purchase has passed. However, the real estate process can be complex, and circumstances sometimes allow for new offers even when a property is under contract. Understanding the nuances of these statuses and the strategic options available can open doors for interested buyers. This includes the possibility of submitting a backup offer, which can position a buyer to acquire a desired home if the initial transaction encounters unforeseen issues.

Understanding “Pending” Real Estate Statuses

In real estate, various statuses indicate a home’s transactional progress after an offer has been accepted. A “contingent” status means the seller has accepted an offer, but specific conditions must be met before the sale can close. If these conditions, or contingencies, are not fulfilled, the sale may fall through, returning the house to an active market status. Common contingencies include appraisal, inspection, and financing approvals.

A “pending” status generally signifies that all contingencies have been met, and the sale is moving toward closing, though it is not yet final. While a pending status suggests a deal is very close to completion, it does not guarantee the sale will close. Some pending statuses, such as “Pending – Continue to Show” or “Active Under Contract,” indicate that the seller is still open to showing the property and receiving backup offers in case the primary deal fails. Conversely, “Pending – No Show” means the seller is confident in the existing transaction and is no longer showing the property.

The Concept of a Backup Offer

Even when a home is under contract, a buyer can still express interest by submitting a backup offer. A backup offer is a legally binding contract that positions a second buyer to purchase the home if the initial agreement does not materialize. The primary purpose of a backup offer is to provide a safety net for the seller, ensuring they have a contingent buyer ready if the first deal encounters problems, such as financing issues, inspection concerns, or other unmet conditions.

For buyers, making a backup offer can be a strategic move if they have a strong desire for a specific property. It allows them to be next in line without the home going back on the general market, potentially avoiding a new bidding war. While a home is pending, it is possible for the initial deal to fall through. This possibility makes a backup offer a viable option for buyers who are prepared to act if the opportunity arises.

Steps for Submitting a Backup Offer

Submitting a backup offer requires careful preparation, similar to making a primary offer. A buyer should collaborate closely with their real estate agent to draft a competitive proposal. The offer document, also known as an Agreement of Purchase and Sale, outlines key elements such as the proposed purchase price, financing details, and the target closing date. It should also specify inclusions and exclusions, such as appliances or fixtures, to avoid future misunderstandings.

A significant component of any offer is the earnest money deposit, which demonstrates the buyer’s serious intent. This deposit is held in an escrow account and is later applied towards the down payment or closing costs if the sale progresses. The backup offer must clearly state that its validity is contingent upon the termination of the primary agreement. Including common contingencies, such as those for a home inspection or appraisal, is important to protect the buyer’s interests, allowing for an exit if conditions are not met. These elements are formally presented to the seller’s agent for consideration.

What Happens After Submission

After a backup offer is submitted, the seller has the option to accept it, reject it, or not respond. If accepted, the backup offer becomes a legally binding contract, but its effectiveness is contingent on the primary deal failing to close. The primary offer remains valid and under contract, and the seller cannot break that agreement to accept a new, potentially better, offer. Sellers may accept multiple backup offers, ranking them in order of preference.

If the original contract falls through due to unmet contingencies or other issues, the accepted backup offer automatically moves into the primary position. At this point, the backup buyer is notified, and the closing process for their offer begins. If the original deal successfully closes, the backup offer becomes null and void, and any earnest money deposited by the backup buyer is returned. Buyers in a backup position should continue their property search, as there is no guarantee the primary deal will fail.