Sale pending<\/a> is the status in between active and sold, which indicates that you\u2019ve accepted an offer and are in the process of selling, but that the sale is not yet completed.<\/p>\n In its own way, the sale pending period is just as stressful as the days spent working and waiting for your home to sell. Not only will you need to be packing, cleaning, and getting the house ready for your buyer, there\u2019s also a lot of waiting and hoping that all of the moving pieces fall into place and your home sale closes on time, if you make it to closing at all.<\/p>\n Real estate agents keep an eye on sales pending properties because there are a number of ways that the deal could fall through and the house could come back on the market. Things that could derail a sale during the sale pending period include:<\/p>\n These are the primary ways a home sale could fall apart, but there are other closing regulations that vary from state to state<\/a>.<\/p>\n \u201cA lot of the closing process is area specific because there are different regulations in California or Florida, compared to where I am in New York state. Even downstate New York is done differently than upstate New York,\u201d advises Christine Marchesiello<\/a>, a top real estate agent located in the Albany, NY area.<\/p>\n Let\u2019s take a look at the top 10 pieces of information that every seller needs to know about the sale pending period that\u2019ll apply in almost every state. For further details, you should talk to your agent about your area\u2019s local market customs and norms.<\/p>\n Once you\u2019ve reached pending sale status, it becomes difficult for you as the seller to walk away from the deal of your own volition. When you sign the papers and accept your buyer\u2019s earnest money, you are entering into a legally binding contract that obligates you to fulfill your commitment to sell the house.<\/p>\n It doesn\u2019t matter if you get cold feet, start to feel seller\u2019s remorse, or receive a more attractive offer than the one you\u2019ve already signed: it\u2019s going to be really hard to back out of the contract<\/a> from here. If you do, the buyer could sue you for damages and demand through the courts that you sell through a type of legal action called \u201cspecific performance<\/a>\u201d \u2014 which is basically a way to force you to sell as promised.<\/p>\n However, one way to protect yourself in a contract for a smoother \u201csale pending\u201d phase is to work with your agent to pencil in a kick-out clause<\/a>. A kick-out clause gives you the right to continue showing the home during the contingency period. If you receive another offer, your original buyer will have a certain period of time (usually 24, 48, or 72 hours) to remove the contingency holding up escrow. This is particularly helpful when the buyer\u2019s offer is contingent on the sale of their existing home<\/a>.<\/p>\n While you\u2019re locked in to the home sale as soon as (or soon after) you sign the contract, your buyer is not. Most buyers will add a number of contingencies to the contract, such as the home inspection, appraisal, and financing contingency. Their purchase is contingent<\/i> on all of these steps in escrow going according to plan. However, a number of hiccups can prevent those contingencies from being lifted, including:<\/p>\n If a buyer encounters any of these roadblocks any they are protected by contract contingency, they can cancel the contract and keep their earnest money. To keep these escape hatches to a minimum, work with a top real estate agent<\/a> who can advise you on how to remove certain contingencies<\/a> before signing the contract. A great agent<\/a> will also help you hold buyers accountable to their contract deadlines<\/a> to keep escrow on track<\/a>.<\/p>\n When high demand and a low number of houses for sale result in a strong seller\u2019s market<\/a>, buyers are willing to agree to almost anything for a chance to get into a house. This creates the perfect opportunity for sellers to line up a backup offer from another buyer<\/a> that only comes into effect if the original pending sale falls through.<\/p>\n \u201cIf sellers are able to secure a backup offer, it gives them a little bit more power in any inspection negotiations that might arise,\u201d advises Marchesiello.<\/p>\n \u201cIf their buyer is unreasonable with the inspection repair requests, the sellers can stand their ground more firmly during that inspection negotiation period, knowing that they have another offer already in their back pocket.\u201d<\/p><\/blockquote>\n Just make sure that backup offer is one you\u2019re willing to accept \u2014 because that backup is a legally binding contract, too. If you arrange a so-so backup offer simply to use it as leverage and your current pending sale does fall through, you could be stuck.<\/p>\n Once assured that all parties are all in, the first step buyers take is hiring a home inspector to find any issues that may exist. The inspection report is usually done right off the bat after you sign the sales contract.<\/p>\n Just don\u2019t expect to get your hands on the full report after the home inspection is completed.<\/p>\n \u201cOne thing sellers misunderstand is that they’re not entitled to see it. It\u2019s the buyer\u2019s inspection report,\u201d explains Marchesiello. \u201cHowever, if the buyer uses the report to ask for a major repair or credit, they are required to submit the relevant pages of the inspection report. But they still don’t have to give you the entire inspection report.\u201d<\/p>\n In addition, demanding a copy of the report can actually backfire<\/a> as the buyer can use it to say your home is defective.<\/p>\n If the home inspection finds a surprise repair item and your buyer wants a full credit for that amount, you do not have to agree. You can make a counteroffer to your current buyer\u2019s request and negotiate a compromise.<\/p>\n \u201cDuring closing, sellers rely on their buyers to operate in a way that is a win-win for everybody. That\u2019s what happens 60% of the time, but often in negotiations, one party wants to feel like they’re winning everything and not compromising,\u201d says Marchesiello.<\/p>\n \u201cThere\u2019s always a really fine line when negotiating, because buyers tend to ask for the most extreme amount and sellers obviously want to give the least amount of credit. So be prepared to get counter estimates for any of the buyer’s repair requests.\u201d<\/p><\/blockquote>\n For example, if the inspector finds a crack in the foundation, and the buyer gets a $12,000 repair estimate from a mason, you don\u2019t need to negotiate based off of that number. The buyers could shop for the highest estimate they can find to put themselves in a better bargaining position.<\/p>\n You need to get an estimate from your own contractor or mason and get an estimate as well. Your contractor may determine that it\u2019s not a structural crack, but a cosmetic one that wouldn\u2019t necessarily need to be repaired at all.<\/p>\n There are no rules regulating these negotiations, though. It\u2019s the discretion of the buyer and seller to come to an agreement over the repair requests.<\/p>\n If you cannot negotiate a compromise, you can say no to the request and let the current buyer walk away. Then it\u2019s up to you if you just want to try your luck with the next buyer, or you can pull the house off the market and relist after making the repair.<\/p>\n Brand new landscaping, resurfacing the pool, a carpet credit because they don\u2019t like the current color \u2014 buyers come up with all sorts of crazy requests during the negotiation period.<\/p>\n However, while you are legally obligated to sell them the house at the completion of the sale pending period, you are not required to transform it into their dream home by fulfilling their every request.<\/p>\n For the requests that are purely cosmetic or just personal preference, you can simply say no without any negotiation<\/a>. Depending on your state, you may even be able to say no to some legitimate repair requests. Every state has their own standard in terms of what qualifies as a repair that would require negotiation after the inspection report comes in.<\/p>\n \u201cIn New York state, a seller is only required to renegotiate the contract terms if the inspection finds one major structural defect with a repair cost totaling at least $1,500. However, in other parts of the country, pretty much anything can be asked for or renegotiated,\u201d explains Marchesiello.<\/p>\n Knowing that a flat \u201cno\u201d is an option, it\u2019s tempting for some sellers to take a hardline against any and all buyer repair requests, but not so fast. There are some repair requests that buyers are likely to take a stand on<\/a> and could be required to make the house safe and livable, including:<\/p>\n The other major sticking point that can cause your pending sale to fall through is the home appraisal required by lenders to verify the market value of the home. When a low appraisal comes in, you have four main options:<\/p>\n Ask your agent to advise you on which option is the best in your specific situation. They\u2019ve got the insider knowledge to know if the appraisal is on point or incorrect.<\/p>\n \u201cGood seller\u2019s agents have their finger on the pulse of the market in a very different way than appraisers do. So if an appraisal comes back low, a good real estate agent can submit new comparables for the lender\u2019s consideration, or even try to get a second appraisal,\u201d advises Marchesiello.<\/p>\n Once you’ve gotten through your inspection contingency and the buyers have their mortgage commitment in place, you probably won\u2019t hear a lot on how the sale process is progressing, but it IS progressing.<\/p>\n \u201cIt’s going to get quiet because there’s a lot of background things happening,\u201d explains Marchesiello. \u201cThere\u2019s title work, which takes anywhere from two to five weeks. The bank is also collecting final documents because even though there is a mortgage commitment, it\u2019s often contingent on review of final documents from the buyer. So it can feel like nothing’s happening, but during that time, no news is good news.\u201d<\/p>\n The title work period is the quietest one because there\u2019s simply nothing to communicate when the attorneys are waiting on the title report to come back. Once it does come in, it must be reviewed to make sure the title is clean and ready to be transferred.<\/p>\n This can take longer than you\u2019d expect because most attorneys will not even order the title work until after all other contingencies have been removed. They don’t want to pay for a title search on a property if the buyer doesn’t have their mortgage commitment completed yet.<\/p>\n Communications may be calm and quiet for a stretch, but you can use the downtime to clean up your house for the approaching final walkthrough<\/a>.<\/p>\n Things start moving fast once the title is cleared for transfer. That\u2019s pretty much the last step before the sale closes, so once the title has cleared, your buyer will want to schedule a final walkthrough to ensure the house is as it should be before the sale closes.<\/p>\n If your buyer has a great agent, they\u2019ll advise them to wait until you\u2019ve completely moved out of the house before scheduling the final walkthrough. This is the only way they can make sure that you haven\u2019t taken anything you\u2019ve promised to leave, like that dining room chandelier or the kitchen appliances.<\/p>\n\n
1. You\u2019re locked into the contract once you sign<\/h2>\n
![\"Understand](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/sale-pending-meaning-666x381.png\")
<\/a>2. The buyers can walk away more easily than you can<\/h2>\n
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3. Line up backup offers to hedge your risk<\/h2>\n
![\"You](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/sale-pending-inspect-666x381.png\")
<\/a>4. You\u2019re not entitled to see the full inspection report<\/h2>\n
5. Come ready to negotiate after the buyer gets their inspection report<\/h2>\n
![\"Come](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/sale-pending-negotiate-666x381.png\")
<\/a>6. \u2026But know that you aren\u2019t always required to negotiate<\/h2>\n
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7. Know your options if your buyer\u2019s appraisal comes in low<\/h2>\n
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![\"Don't](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/sale-pending-call-666x381.png\")
<\/a>8. Don\u2019t panic if communications get quiet for a stretch<\/h2>\n
9. Use that quiet time to get your home ready for the final walkthrough<\/h2>\n
![\"Prepare](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2020\/12\/sale-pending-prepare-666x381.png\")
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