If a House Is Pending, Can I Make an Offer?

When a home you are interested in suddenly shows a “pending” status, it can feel like your opportunity has vanished. However, this status does not always signify a finalized sale. A property marked as pending means the seller has accepted an offer and the transaction is progressing towards closing, but it is not yet complete. This situation often presents an avenue for other interested buyers to still make an offer.

Understanding the “Pending” Status

A “pending” status indicates a property is under contract, meaning the buyer and seller have agreed on terms and are moving forward with the transaction. The final sale has not yet occurred, and the period between an accepted offer and final closing involves several steps. During this time, the property is typically not actively marketed to other buyers.

While a property is pending, the sale is not guaranteed to close, and various issues can cause the deal to fall through. Common reasons include problems with the buyer’s financing, such as a loan falling through or a change in their financial situation. Issues uncovered during the home inspection, like significant structural defects or major repair needs, can also lead to a contract termination if negotiations fail. Additionally, if the home’s appraised value comes in lower than the agreed-upon purchase price, financing can be affected, potentially derailing the sale. Title issues, such as undisclosed liens or ownership disputes, also represent a potential hurdle that can prevent a sale from closing.

The Process of Making an Offer on a Pending Home

You can express interest in a pending home by submitting a backup offer. Your real estate agent plays a crucial role in this process, as they will contact the seller’s agent to inquire about the current situation. This initial communication helps determine if the seller is open to considering backup offers and provides insight into the likelihood of the primary deal failing. Sellers may accept backup offers as a safety net in case their primary contract does not materialize.

If the seller indicates a willingness to entertain backup offers, your agent can then prepare and submit a formal offer. This backup offer will include key components such as the proposed purchase price, any contingencies you require, and the earnest money deposit. The earnest money, typically a percentage of the purchase price, demonstrates your serious intent to buy the home. A backup offer, once accepted by the seller, becomes a legally binding contract that automatically moves into primary position if the initial contract is terminated.

Crafting a Strong Backup Offer

To make your backup offer compelling, several strategic considerations are important. Offering a competitive price, possibly even above the asking price, can increase its attractiveness to the seller, especially in a competitive market. Demonstrating strong financial readiness, such as having a mortgage pre-approval or proof of funds for a cash purchase, signals your ability to close the deal without delays. Minimizing contingencies can also strengthen your offer.

For example, you might reduce the scope of your inspection requests or shorten contingency periods, indicating a streamlined path to closing. A substantial earnest money deposit further communicates your commitment and financial stability. Flexibility with the closing date, aligning with the seller’s preferred timeline, can also be a valuable concession. Occasionally, a personalized letter to the seller, expressing your genuine interest and connection to the home, can create an emotional appeal, though its impact varies.

Outcomes After Submitting an Offer

After submitting a backup offer, several potential outcomes exist. In most instances, the primary pending sale will proceed to closing as planned. If this happens, your backup offer will simply expire or be rejected, and any earnest money you deposited will be returned to you. The seller’s agent will typically notify your agent if the primary contract successfully closes.

If the primary contract falls through due to unmet contingencies or other issues, your accepted backup offer will move into the primary position. At this point, you would proceed with your due diligence, including conducting inspections, securing financing, and obtaining an appraisal, just as you would with any standard purchase agreement. A buyer who has submitted a backup offer usually retains the option to withdraw their offer if their circumstances change or they find another property before their offer becomes primary.