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

It is possible to make an offer on a house in pending status, although acceptance as the primary offer is often low. When a home is marked “pending,” the seller has accepted an offer, and a contract is in place. While technically off the market, the sale is not finalized, leaving opportunity for other interested parties. This allows for a backup offer, which can become active if the initial transaction fails to close.

Understanding Pending Status

This differs from a “contingent” status, where specific conditions, such as a home inspection or financing approval, still need to be met before the contract is fully secured. Once these contingencies are satisfied, the property typically transitions from contingent to pending.

During the pending phase, the contract is considered binding, and both parties are working to complete the necessary steps for property ownership transfer. These steps often include final loan underwriting, title searches to confirm clear ownership, and the preparation of closing documents. While the sale is far along, it is not yet a closed deal, meaning the property has not officially changed hands.

Making a Backup Offer

Submitting an offer on a pending home is known as making a “backup offer.” This legally binding proposal becomes the primary contract only if the initial agreement does not proceed to closing. A backup offer demonstrates a serious intent to purchase the property and places the buyer in a favorable position should the current deal collapse.

Key components of a backup offer are similar to any standard purchase agreement, including the proposed purchase price, specific terms of the sale, and any desired contingencies. These might include provisions for a home inspection or financing, even though the primary contract may have already cleared these hurdles. The backup offer is typically submitted through a real estate agent to the seller’s agent, who then presents it to the seller for consideration.

Common Reasons Pending Deals Fail

Despite a contract being in pending status, several factors can cause the initial deal to fall through, creating an opening for a backup offer. One common reason involves issues arising from the home inspection. If significant defects are discovered, such as structural damage or major system failures, the buyer may renegotiate the terms, request repairs, or, if an agreement isn’t reached, withdraw from the contract.

Another frequent challenge is an appraisal gap, where the home’s appraised value is less than the agreed-upon purchase price. Lenders typically only finance up to the appraised value, requiring the buyer to cover the difference out-of-pocket or for the buyer and seller to renegotiate the price.

Financing problems, such as the buyer’s loan not being approved due to changes in their financial qualifications or unforeseen credit issues, can also derail a sale. Furthermore, title issues, including undisclosed liens or property line disputes, can complicate or halt the transfer of ownership if not resolved. Although less common, either the buyer or seller might withdraw from the transaction for various personal reasons, even if it means potential legal or financial consequences.

The Backup Offer Process

Once a backup offer has been formally submitted and accepted by the seller as a secondary agreement, it typically awaits the outcome of the primary pending contract. This accepted backup offer is often held by the seller’s agent or placed in escrow, signifying its official position in line. The buyer who submitted the backup offer is generally informed if the initial contract encounters difficulties or ultimately falls through.

Should the primary deal fail to close, the backup offer can then be elevated to the primary contract. This conversion usually involves signing an addendum to the original backup offer, which formally activates it and establishes new timelines for contingencies, such as inspections or financing. If the primary contract successfully proceeds to closing, the backup offer is simply voided, and the buyer is released from their obligation.