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

The real estate market moves quickly, with desirable properties often going under contract quickly. When a house is listed as “pending,” it indicates the seller has accepted an offer from a buyer. However, this status does not always mean the deal is finalized or beyond reach. A property under contract might become available again. Understanding these situations can open opportunities for buyers who thought they missed out.

Interpreting Pending Statuses

Properties listed in the Multiple Listing Service (MLS) carry different statuses once an offer is accepted. A “pending” status usually means all contingencies are met or waived, and the transaction is progressing toward closing. The seller is generally not actively seeking new offers, as the deal is firm. This status often signals the sale is nearing completion, typically within a few weeks.

Another common status is “under contract.” While sometimes used interchangeably with “pending,” it often means an offer is accepted but contingencies remain. A “contingent” status means the accepted offer depends on conditions being satisfied, such as buyer financing, home inspection, the sale of the buyer’s current home, or an appraisal meeting the agreed-upon price. When contingent, especially on a home sale, the seller might be open to receiving backup offers.

The type of contingency influences a seller’s willingness to consider other offers. For example, a property contingent on financing or inspection is closer to closing than one contingent on the buyer selling their existing home. Some contingent listings specify the seller is seeking backup offers, inviting other interested buyers. Understanding these distinctions helps assess a property’s availability.

Why Pending Sales Can Fail to Close

Several factors can cause a real estate transaction to fall through. One common reason involves buyer financing. If a buyer cannot secure loan approval, perhaps due to financial changes or higher interest rates, the financing contingency may not be met, terminating the contract. Lenders require specific documentation and financial stability; any deviation can halt the process.

Another frequent hurdle is the home inspection. After an inspection, significant issues or unexpected repair costs might surface, leading the buyer to request repairs or a credit. If the buyer and seller cannot agree, the buyer may exercise their inspection contingency and withdraw their offer. This protects the buyer from inheriting costly problems.

Appraisal issues can also derail a sale. Lenders require an appraisal to ensure the property’s value supports the loan amount. If the appraisal comes in lower than the agreed-upon price, the lender may not approve the full loan, requiring the buyer to cover the difference or renegotiate. Title problems, such as undisclosed liens or ownership disputes, can also prevent closing, as a clear title is essential for ownership transfer.

Submitting an Offer on a Pending Property

Making an offer on a property under contract requires a strategic approach, often with a real estate agent’s help. Your agent can contact the seller’s agent to learn the accepted offer’s status and inquire about backup offers. This communication helps determine if pursuing an offer is worthwhile. Even if a seller is not actively seeking backup offers, a compelling proposal might still capture their attention, especially if the primary deal shows signs of weakness.

A “backup offer” is a formal, legally binding contract that becomes primary if the initial contract fails. It is prepared like any other purchase agreement, including price, contingencies, and earnest money. Earnest money, typically 1% to 3% of the price, demonstrates commitment and is held in escrow until closing or cancellation. Your offer should outline contingencies, such as financing, home inspection, or appraisal, to protect your interests.

Crafting a strong backup offer is essential; it must be attractive enough for the seller to consider if the primary deal fails. This might involve offering a competitive price, strong financial pre-approval, or limiting contingencies where appropriate. Your agent will help you structure the offer to maximize its appeal while safeguarding your position. This preparation ensures your offer is ready to move forward swiftly if the opportunity arises.

Navigating the Process After Submission

Once a backup offer is submitted, the process involves waiting. The seller’s agent will acknowledge receipt and communicate its status. If the seller accepts your backup offer, it does not immediately become the primary contract; instead, it enters a queue, waiting for the current primary contract to terminate. During this waiting period, your earnest money deposit is not required immediately, but be prepared to submit it promptly if your offer moves to primary.

Communication between your agent and the seller’s agent is essential. Your agent will monitor the primary contract’s status and relay developments. If the primary contract fails to close, the seller can formally activate your backup offer. This activation involves the seller notifying you in writing that your offer is now primary, starting agreed-upon timelines for contingencies and closing.

The waiting period can vary significantly, from days to weeks, depending on the primary contract’s contingencies and reasons for potential failure. If your backup offer is activated, you will proceed with standard due diligence, including inspections and securing financing, as outlined in your contract. If the primary contract closes, your backup offer simply expires, and your earnest money (if submitted) is returned.