A “Pending” designation on a home means that there is an agreement in place to sell the house. There is a buyer, and they have come to a price and contingencies that they both agree on. It’s all set. Or is it? Somee homes still keep the option for a “backup offer” open, meaning that another family can sneak in and win the home with an offer if the original sale falls through. You can get your dream home with a backup offer.
The sale can fall through for a variety of reasons, including funding and contingencies not being met. Contingencies can end a sale. The most likely culprits are: Inspections, Appraisals, and the buyer’s loan approval. These elements have killed many sales and left the home seller holding the bag, often with another home already under contract. That is why a “Backup Offer” can be so appealing.
If you are in a space to wait out a home, you can make a backup offer on a home, and you may be able to sweep in on the home at the last minute. If you’re currently renting, another month won’t kill you. With inventory tight, you may want to wait out the home you love, and gamble on that rather than buying a home that you don’t want. However, you also don’t want to miss out on the low rates available today.
Contact the listing agent and ask. If they give you any indication that the home sale is in trouble, you can slip in a backup offer and maybe get that dream home.
Once you have an approval of funds that will cover the home, make your offer. Make sure that your money line is absolutely clean, no issues with it. Maybe even come in slightly over offer (but within your comfort zone!) and look good.
Also, try to be flexible. Find out what the breaking point may have been on the sale, and make sure that you’re on the same side as the seller. Let them stay in the home an extra month. Don’t make them re-do the deck. Whatever it is to get into the house, if you love it.
Most importantly, stay available. Make the seller’s agent remember you, maybe with a letter, but with continual contact. Get yourself out there. Keep in contact, and you could end up getting that home after all.
If you are ready to buy or sell your home, call Rick and Tracy Ellis of Keller-Williams Realty today to get the best deal! We have 20 years of experience buying and selling homes in the St. Louis area, and nobody will get you a better deal on your home. Call us at (636) 299-3702, email Tracy at tracy@tracyellis.com or Rick at rick@tracyellis.com or visit www.tracyellis.com to learn more. You can also listen to us every weekend on FM News Talk 97.1, Saturdays at 4 p.m. and Sundays at 10 a.m.
