On what homes can you make an offer? Are homes marked ‘sale pending’ off limits? Nope! You can still make an offer.
‘Sale pending’ means the buyer and seller are still negotiating their purchase agreement. You can make a backup offer. If the sale falls through, you could end up nabbing the home of your dreams!
Why ‘Pending Offer’ Sales Fall Through
To get to a pending offer, the buyer and seller have both gone through a lot of work. Still, the sale can fall through for a variety of reasons. These can include:
- Failed Inspection – If the home has a septic tank that doesn’t pass inspection, the sale will be put on hold until the tank is replaced. If it has a sagging foundation or leaky roof, the same could be true. In short, any major repair the inspector uncovers could kill the deal.
- Under Appraised – Once an offer is accepted an appraiser determines the actual value of the home. If the home’s appraisal is less than the sale price, the buyer will typically be on the hook for the difference. If they are unable to make up the difference, their financing could fall through.
Who Should Make a Backup Offer
With demand high and inventory low, finding a home you love can be difficult. If you’re not under a major time constraint to move, submitting a backup offer on a house you really love could be a good move.
You might also find there aren’t a lot of homes in your price range. If this is the case, waiting to see if your backup offer is accepted could sometimes save you from spending more than you want.
What Makes an Attractive Backup Offer
In the world of real estate, more money almost always makes an offer more attractive. You might even sweeten the pot by offering over asking – even if ever so slightly.
Being flexible about move-in dates can be another biggie for sellers. Can you give them a little extra time in their home?
Last, but not least, write a letter. Tell the current owners why you love their home. Flattery goes a long way in earning goodwill.
But before you make an offer, you better be pre-approved. Contact me today to get going.