Property listing is "Pending" -- do you still view/make offer, or let it go? (contingencies, foreclosures)

[Sky-Blue]

Many properties I am interested in list their current status as "Pending." It could be an offer was recently accepted, but could fall apart.
Do you advise to still view "pending" properties and put in a written offer, or is that usually a waste of time?

[muggums]

In my area pending means all contingencies have been satisfied and they are just waiting to close. Most of the time they are not allowing showings. I don't waste time on them, if something changes and they go back on the market I'm signed up to receive updates.

[MikeJaquish]

It depends...

//www.city-data.com/forum/forec...-question.html

If you really want the property, you can make an offer regardless of the status.
While contracts DO all too often fail and terminate, you need to recognize that the odds are generally against you once someone else gets the property under contract.

[manderly6]

Sounds like a big waste of time and effort.

[jeoff]

Would it be different for short sales? Or, would those not be listed as pending? A seller can accept a bid from a buyer, but a bank holding the loan often does not approve of the sale.

[FalconheadWest]

I don't like to show my buyers houses that are pending because it gets their hopes up. It's not technically available as there is another buyer on the property, and people put too much effort in hoping someone else has bad luck on their side to make the deal fall apart.

Plus, in my area, if you have a back up contract in place, you have to still abide by the contract and deposit earnest money at the title company. If you're short on cash, this ties up your money to be able to write another contract when you find another house as you'll have to wait a few days for the title company to release your funds when/if you cancel the initial contract.

If you write several back up contracts, just count the money you're out for each one. Though it's refundable, it's still gone for use at that moment.

[MikeJaquish]

Originally Posted by jeoff

Would it be different for short sales? Or, would those not be listed as pending? A seller can accept a bid from a buyer, but a bank holding the loan often does not approve of the sale.

It depends....

By law in NC, all offers must be submitted to the bank, regardless of the contract status.
Some banks decline to look at additional offers.

[Lacerta]

Originally Posted by jeoff

Would it be different for short sales? Or, would those not be listed as pending? A seller can accept a bid from a buyer, but a bank holding the loan often does not approve of the sale.

In my area, when the bank is still considering the offer, it is listed as "contingent short sale", which is an active category, rather than pending. Whether the bank will bump a prior offer depends on the bank, the wording of the first contract, and how far along in the process they are.

In my opinion, at least in my area, it is a waste of everyone's time to look at pendings. And as Falconhead mentioned, if they fall in love with a house that is pending and then can't buy it, it may put them off the whole process. An agent in our office recently had a buyer who wanted to look at a house that already had an offer on it. She made an offer that was accepted in backup position, meaning if the first deal falls through, her contract would be next in line. The agent explained all this to her, and explained that even though her offer was better, there was a legally binding contract in place that couldn't be bumped, and that most likely the offer in first position would close, and then she would get her Earnest Money back, and in the meantime, if they wanted to keep looking at other houses, they could. When the offer in first position DID close, as the agent had predicted, the client was VERY upset and now no longer wants to work with our agent, since she feels like the agent didn't do her job by FORCING the seller to break their legally enforceable contract and sell to her instead.

[Sky-Blue]

Originally Posted by FalconheadWest

I don't like to show my buyers houses that are pending because it gets their hopes up. It's not technically available as there is another buyer on the property, and people put too much effort in hoping someone else has bad luck on their side to make the deal fall apart.

In this case, do I give the realtor my cell phone to call me the minute the current deal falls apart?

Originally Posted by FalconheadWest

Plus, in my area, if you have a back up contract in place, you have to still abide by the contract and deposit earnest money at the title company. If you're short on cash, this ties up your money to be able to write another contract when you find another house as you'll have to wait a few days for the title company to release your funds when/if you cancel the initial contract.

If you write several back up contracts, just count the money you're out for each one. Though it's refundable, it's still gone for use at that moment.

Good advice. As long as I cancel first, I should get my earnest money back. But if I get contacted on two "pending" properties on the same day, then it sounds like I may have to forfeit the earnest money on one of them.

[manderly6]

Just move on to an available house.