Boston Property Management: Buy a home whose sale is pending
When the sign outside a home says “Pending”, it doesn’t mean that the sale is a done deal. The same goes for listings you see online. If it says “pending” or “contingent” online, then you know that there is a chance you might still be able to get the property.
This is what you need to do to see if a “pending” sale is worth going after.
Distinguish between “subject to” and “contingent upon”
These are different terms which you need to understand. When a buyer makes an offer, then it is usually subjected to either a property inspection, a bank appraisal, or a loan appraisal. If it is a negative on either one, then the sale can fall through. Then there are times when it is contingent upon the sale of their current home. In a nutshell if the financing falls through, there is an issue with the inspection of the home or if the home is not being sold then the contract is easily nullified.
Boston Property Management: Active with conditions
Sometimes a property which is under negotiation may still be for sale. This is when you see a contingency which says “active with conditions” “Active continue to show”. This means that the seller is still entertaining other offers. The seller is also not able to enter into an agreement with the buyer and that means it’s not a done deal. So you could be the other buyer who can make the backup offer. In the event that the first offer falls through, you might be able to fill the gap with your counter offer. If you also fail to make a good offer, then the house goes back on the market.
The other thing is that sometimes the contract is not signed till there is a home inspection. There is just a verbal agreement and it is not finalized till all parties sign it.
No more contingencies
This is where the deal is still pending and there are no more contingencies. The buyer is committed to buying the home. This means that it will move towards the closing and it will take either a few days or a few weeks. The sale is done only after the final closing. Sometimes a buyer may exit the purchase after removing all the contingencies. This would be due to some emergency and then the buyer will lose out on the deposit.
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