Home Buying in Raleigh>Question Details

froggy4, Home Owner in Hemet, CA

Difference between "Pending" or "In Escrow" vs. SOLD

Asked by froggy4, Hemet, CA Mon Feb 17, 2014

My home is pending with an offer accepted, waiting for inspection, appraisal, and for the buyers to secure their loan. My realtor added a SOLD sign to the front of the house. I specifically asked her to take any and all backup offers that might come in. She said there is no difference beween "pending" "in Escrow" or SOLD hanging on a sign in front of the house. Won't it be more difficult to get anyone to look at or possibly make a backup offer when the sign says SOLD? She told me that is the way it is done, when the deal closes the removal of the sign in its entirety means the deal is closed. I am confused!

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9
Just curious. Did you post this question in California as well?
1 vote Thank Flag Link Mon Feb 17, 2014
Posting in "California" tonight. Thank you, Linda. Ernie, sometimes I don't get to the computer 'til evening. THANK YOU GUYS!
Flag Mon Feb 17, 2014
No. I didn't realize there was a different place to post by state. When I found this Q&A blog, NC is what came up, thought maybe it was just from the most recent question.
Flag Mon Feb 17, 2014
Don't think California is up and awake yet.... LOL
Flag Mon Feb 17, 2014
Every state is slightly different.

Here in NC

Contingent means; under contract waiting on inspections and final loan approval of buyer.

Pending means: inspections are finished and the buyers loan has been approved but waiting for the settlement date and deed recording. Or the closing.

The word or banner saying SOLD may name only placed in the yard After the deed has been transfered and recorded.

Prior to that record deed we may only put under contract sign in the yard.

As other ppl have mentioned your home will close.
1 vote Thank Flag Link Mon Feb 17, 2014
Yes, with a sold sign hanging up you're not going to get much in the way of showings or inquiries. YOur home should be listed as Contingent not Pending. The contingencies being the diligecne period items inspection, appraisal etc. Once The diligence period is over then the house listing goes to Pending which means all contingencies have been met and all your waiting on is closing at this time the Sold sign could go up.

All of that said, as a very active Realtor here in the Triangle, I don't send my buyers listings that are anything but active, neither they or I have time to waste. with over 1000 transactions closed I've never written a back up offer and have no plans to ever do so. While you may wish for one, the chances of your ever getting a back up are slim to none, as agents and buyers feel like I do, why waste the time. However you gave your Realtor specific instructions and she should honor them. She should also learn the difference between Active, Contingent and Pending and how they get used by our MLS.

To be honest I also never put up sold signs, the only reason for these is the agent is trying to promote themselves, it has nothing to do with you at all. I'm not against Sold signs I just have no reason, my name is already on the sign in front and that's enough for me, but lots of agents do use sold signs and there's nothing wrong with them unless your client/seller says otherwise.
1 vote Thank Flag Link Mon Feb 17, 2014
Yes, you are correct. Our team never hangs a "SOLD" or "Under Contract" sign because it does slow down the amount of calls on the house. Adding a "SOLD" sign serves the purpose of showing the neighborhood how good your real estate agent was to get your property sold, it is purely a gesture of boasting.

Chris Gorman
Buyer & Relocation Specialist
Linda Craft & Team Realtors
919-645-7212
chrisg@lindacraft.com
1 vote Thank Flag Link Mon Feb 17, 2014
I think so too.
JoAnn Knorr, agent
CBHPW
Flag Mon Feb 17, 2014
Again...another NC Realtor here. California I have learned over my 20 years has some of it's own terminology. I know how it works here and the last two years I took my continuing education, have heard that this state doesn't even endorse using SOLD signs anymore because the home is not truly sold until the closing attorney has filed the closing paperwork with the courthouse. Up until that point, we are supposed to use either SALE PENDING or UNDER CONTRACT riders on our signs. With that being said though, your agent is basically correct as any type of rider stating the home has a contract on it , no matter what the terminology, will deter potential buyers from looking at the house. What your agent should be able to do is put a comment on the MLS stating that you are accepting backup offers so that other agents may consider your home for their buyers....providing of course that is allowed in your state.
1 vote Thank Flag Link Mon Feb 17, 2014
I am a Realtor in North Carolina. Here a property is not entered into our Multiple Listing Service as Sold until the transaction has been completed and the deed recorded.
1 vote Thank Flag Link Mon Feb 17, 2014
Contingent vs Pending - What's the Difference - In North Carolina. (California may be different)

You have your home up for sale, you have it priced appropriately, you have kept it show ready, and you have a Raleigh Realtor that actively markets you home - and it all pays off. You have an offer. Yeah!!

Now, while the terms and condition of the sale are being negotiated and the offer is working it way to a close date should you stop showing your home to other prospective buyers?

When buyers are looking for a homes in Raleigh for sale, most homes advertised have an "active" status in the Triangle MLS system. This means they are available for buyers to see and make an offer on.

However, now that you have a contract your home's listing status will change. Your Raleigh homes status will change to either "contingent" or "pending." The choice of which one status it changes to is yours to make.

First, what do these terms mean and how will they effect you as a Raleigh home seller?

What's the difference?

If you want to continue to have Raleigh real estate agents show your home to potential buyers the MLS status is "Contingent."

If you don't want to continue to have Raleigh real estate agents show your to potential buyers the MLS status is "Pending."

Your Raleigh real estate agent should go over the differences in the two choices with you - it is an important decision. The choice of one status over another is made after looking at several things.

What that means to a Raleigh Home Seller

Having your Raleigh home up for sale isn't easy. You have to live in a constant state of readiness for a showing, you're always hopeful that each time your home is shown the people looking at it will love it and want to buy it, and the next step in your life may be on hold until your home is sold.

Once you have an offer in hand it seems that all is good and - usually it is. However the process from contract to close can be challenging for you as a seller.

On both sides, the Raleigh seller and Raleigh home buyer have to agree and sign off on all aspects of the contract. That will include price, terms (due diligence & fee, earnest money, what things in the home stay or go, close date, etc.) and repairs, if any.

Once all these things are decided buyers have to get their loan secured. With all the loan conditions and requirements in place now, this is an area where problems may, or may not occur.

Because a home is not truly sold until the closing documents have been signed and the deed recorded to the new owner, the decision to continue having your home available for showings during this process is an important one.

Contingent or Pending - Pros and Cons

Contingent

Pro: Your home is still available to potential buyers. So, if something happens to cause the current offer to fall through you may have found a buyer who has indicated that they would like to put in a back-up offer in case the fist offer fails in someway.

Con: You still have to live in a "show ready" home. You're still able to do all your getting ready to move but you also have to "control the chaos" in case someone wants to see the home.

Pending

Pro: You are confident in all aspects of the offer and can get ready to move. Your home is not going to be shown again and so let the packing begin! You don't have to vacuum every day as you leave and should you forget to put away all the kids toys - it OK.

Con: Should something go awry with the offer and it fails to close - you have to get your home back to "show condition" and be prepared for calls for showings.
Bottom line

In truth these two terms can be confusing for both buyers and sellers. Every home sale is different and every contract is different. It is best to discuss this thoroughly with your Raleigh Realtor and make the decision of "pending" or "contingent" based on the strength of the offer and the needs of you as a home seller.
1 vote Thank Flag Link Mon Feb 17, 2014
The home is empty and always ready and available for showing. We have had it on the market since July and we want someone to be able to "love" in the home as our family did for 30+ years. My concern is that if the current offer falls through for some reason (this is California), we could have lost another potential buyer by showing it "SOLD" and having "the right buyer" pass it buy because of the terminology. I specifically asked that the agent welcome all contingent offers until our name is off the property. This was my mother's home and it is quite a distance away from me.
Flag Mon Feb 17, 2014
Thank you for your input. Though I am not well versed in "Real Estate" terminology, I do feel something is amiss. Of course, it will only become an issue if the current offer does not close. Thank you for your help!
Flag Mon Feb 17, 2014
I am another NC Realtor and my best recommendation to you is to post this question on Trulia's California section. Unless one of the Nc agents that answered your question is shally licensed in CA we are not able to give you the best answer.

I absolutely understand your desire to get this clarified so that you could possibly receive back up offers.

Good luck to you!
Web Reference: http://www.TeamAbshure.com
0 votes Thank Flag Link Sun Mar 2, 2014
Already reposted to California.

Realtor told me she "does not want any more paper on this property".

I will check for realtors more carefully in the future.
Flag Sat Mar 15, 2014
I did repost it in "California". Thank you.

It appears that my realtor "does not want any more paper on this property" and thought it would help to mark it SOLD rather than PENDING or IN ESCROW.
Flag Sat Mar 15, 2014
I am another NC Realtor and my best recommendation to you is to post this question on Trulia's California section. Unless one of the Nc agents that answered your question is shally licensed in CA we are not able to give you the best answer.

I absolutely understand your desire to get this clarified so that you could possibly receive back up offers.

Good luck to you!
Web Reference: http://www.TeamAbshure.com
0 votes Thank Flag Link Sun Mar 2, 2014
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