For anyone looking to buy real estate or who loves checking out the homes around their neighborhood, you may have wondered about a phrase often plastered on a signboard: “Sale Pending”.
It’s one of those strange phrases used in real estate that doesn’t make sense to anyone with a passing interest in property.
As an experienced agent in your neighborhood, I’ve often been told how potential buyers will see this phrase on a sign outside a home and then ring their agent to see if they can check the place out.
Now, let me tell you why purchasing that particular piece of real estate is a long shot.
When a “Sale Pending” sticker goes on the signboard, a deal will have been signed between a buyer and the seller, and there are just a few details to complete. Usually, they’re 30 to 60 days away from completion.
These are the variables behind a “sale pending” statement.
Common interpretation
The deal is all but done, and it’s a super-long moon-shot for anyone else to come in at this late stage and snare the property.
Small details
Often, a sale or offer will be pending when there are still some outstanding contingencies, such as a building inspection that has yet to be conducted or repairs to complete.
Clock’s ticking
If a signed contract exists, it must be executed. The property is out of play, but both parties must keep their side of the deal in a timely fashion. If, say, the buyer delays, everyone could end up in court and the property is back in play.
Seller frustration
Even though a deal is pending, a seller can be frustrated by a buyer’s contingencies or delays, such as finding sufficient finance. If the relationship between the two parties is not great, an opportunity may open up.
Buyer’s assurance
As the buyer, a “sale pending” sticker on a signboard should give you additional reassurance that you’re approaching the end of the purchase cycle. Any rival buyers will likely back off now.