Pending Sales are those sales that not only have been accepted, but should already be in the escrow process, and getting ready to close. I know this sounds crazy, so bear with me for a bit.
These homes whether a short sale, bank owned or standard sale have all already been approved with terms of sale. There is no waiting or guessing if these houses become available again.
So why look at Pending Sales? In today’s economy, banks have become extremely strict with every changing lending guidelines. We often see houses “ Fall Out of Escrow” ( another industry term) because the buyer was not able to get the financing needed to buy the house. This actually happens more often than we like.
Escrow fallout mostly due to improper loan approvals and qualifications. It is extremely important that your loan officer have plenty of experience. Don’t worry if you loan officer is not up to par, if you work with us – we started in loans, so we can guide your loan officer along the way.
Please note that for Pending homes, there will be lots of competition if and when the house hits the market again. It is important that you get that edge and get the house before it ever makes it back.
Here is how to Find opportunity in Pending Sales
Ask your Realtor to look for Pending Sales that match your search criteria
The home must have been in Pending Status for over 35 days. Standard escrows are 30-45 days, so by now the listing agent should know if the sale is going to close, or fall out.
Review the list, and ask your Realtor to make contact with listing agent to determine probability that the house will be coming back to the market.
Your Realtor should also find out if they already have back up offers.
Be Prepared! If the house is coming back to the market and has no back up offers, then you want to be ready to go.
If this is the case – Submit a back up offer immediately without seeing the house, and make your offer contingent upon seeing the home first.
The listing agent will be happy to not have to completely start over re-marketing the home, so they are usually willing to make arrangements for you to look at the home even before it comes back on the market.
Again, this strategy requires that you be prepared and continuously checking on the status of the sale. If you and your agent take this approach, I can tell you that sooner or later – you will get lucky. Our clients have!