Home Buying in 92630>Question Details

Imtonif, Home Buyer in Lake Forest, CA

Why are homes long since pending or 'back up offer' still on list of available homes.?

Asked by Imtonif, Lake Forest, CA Sun Jun 24, 2012

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As an agent there are two selections we can make once we have put a home into escrow. The first is back up offers and the second is pending sale. I typically put my listings into "back up offers" once it has entered escrow and change it to "pending sale" once the 17 day contigency period has expired and the buyer has removed all their contingencies in writing.

The way the national real estate websites used to work was they still showed "back up offers" but not the "pending sale" properties. Many agents, myself included, became familiar with this and rather than change their listings to "pending sale", they would change it to "back up offers" to get more calls from home buyers searching the internet. There are so many real estate websites now, I don't know who is doing what nor do I care. I can tell you my website only shows active properties. http://www.homesorangecounty.com

Gareth Davies
949-283-3714

Realty ONE Group
Laguna Design Center
23811 Aliso Creek Rd. #181
Laguna Niguel, CA 92677
0 votes Thank Flag Link Thu May 9, 2013
The homes you view in Pending or Back-up are NOT sold or Recorded Closed sales. The reason is to make the public aware of the possibility that these properties MAY come back on the market place. A potenial Buyer who desires a praticular location will often Track this home to make sure IF the property comes back on the Market, they WILL BE READY to step up and make an ALL out effort to purchase the home.

In this present market place, many Short Sales are in motion, negociating with the Seller, Lender & Buyer for the Mutual Fit between ALL parties. These negociations take a lot of days to come close to arriving at an accepted Purchase Price. Generally, the Realtor will put this transaction into BACK-UP position on the MLS, hoping to solicite other interested Buyers into a Back-Up waiting position to see IF the First Buyers are unable to complete the Negociated Terms of the Sale.

Pending Sales usually indicate a strong Buyer with financial background to succeed in the Purchase of the property. EVERY Buyer has the opportunity AFTER acceptance of the Purchase Agreement between Buyer and Seller to begin a Buyer Contingency Period. During this time the Buyer is doing their Home Inspection, Appraisal, Reviewing ALL documentation and disclosures and Most Important of ALL gaining Lender Approval for their New Loan (same process for Cash Buyer Except NO lender Loan Approval).

REAL ESTATE IS DESIGNED TO LOOK AFTER THE COMPLETE SAFETY OF BOTH THE BUYER & SELLER IN FULL DISCLOSURE. THE PURCHASE PROCESS TAKES TIME, EXPERTISE, FULL DISCLOSURE, AND COMPLETE EXAMINATION TO COME TO THE CLOSE OF SALE.

This is why everyone should use a licensed Realtor, we are the Most Professional Organization with the highest standards. I am PROUD TO BE A BROKER/REALTOR CELEBRATING 30 + YEARS. Please feel free to call me with ANY questions 714-335-6623 http://www.suzannehallbrokerrealtor.com

I also love living in Lake Forest, it's a wonderful place and I am happy everyday to be here.
0 votes Thank Flag Link Mon Sep 10, 2012
Hello lmtonif,

Here is my answer, the homes that are in escrow can be in 'B' for back up or 'P' for pending. Typically Realtors place the home in back up once the contract is agreed to by all parties. I believe the status should change to pending once contingencies are removed by the buyer so the deal is more solid and not likely to fall out. There are many agents that leave the home in back up status so the home and the agent will still be found on the consumer based search engines. Once a home goes into pending status it should fall off those consumer search sites.

So if an agent leaves the home in back up status until it closes they may get a call from the ad and then will try to convert the caller to another listing or try to help them find something else. Very frustrating for the real buyers and their agents, it really feels like a bait and switch.

Sorry to say I don't see a fix and I haven't even discussed short sale listings that stay out there seemingly forever.

Good luck with your search,

Brian Wilson, Realtor
DRE# 01321478
949-933-0852
0 votes Thank Flag Link Mon Jun 25, 2012
Because they are still available until they close! Pending sales however, are in escrow and believe it or not, until it has closed a buyer can purchase that property. Albeit they would end up in a lawsuit with the original buyer if the seller was to accept their offer.

Offers are often put in Backup status when there is still a chance the deal could fall apart or they haven't released all contingencies yet.. With short sales, the offer is accepted by the seller first but the offer also has to be accepted by the bank as well since it is indeed a short sale. The approval from the lender can often take months, which is why the listings remain 'available'. Also, since the approval process takes so long, often buyers will walk away and purchase another home before they have approved the price. Another thing that happens is that after waiting 2,3,4 months for bank approval, the bank counters the buyer at a higher price and some frustrated buyers walk away. These buyers assumed that the bank would accept their offer price, but this is not always the case. For this and other reasons, an agent will keep the listing in Backup, hoping to get additional offers in case the deal on the table falls apart. And this indeed does happen.
0 votes Thank Flag Link Sun Jun 24, 2012
Simple answer is, the listing agent is not following the rules of the MLS and puttingthem in backup once the have an offer submitted to the bank. They do this to get more leads and offers. This is one of many reasons that as a buyer you need to be working with an agent to help you weed through all the properties.
Lori Hanson
OC Homes Realty
714-585-5236
DRE 01405146
0 votes Thank Flag Link Sun Jun 24, 2012
Well sad to say there are agents who do not change their status in a timely fashion.
Back ups are taking back up offers and you may do so, it is not uncommon for short sales and some other properties to fall out due to home inspection reports that do not fit the buyers satisfaction, inability to perform by the buyer due to financing,etc, or the seller will not do required repairs.
Each situation is different.
Using a search engine givers a buyer a feel for the market but those who use an agent will get timely and educated advice.
My team and I specialize in finding people lovely homes in the Orange County area. We call this our Free, No-Obligation HomeFinder Service.
Each night our HomeFinder computers access the area Multiple Listing Service and search through all the information on every home listed in the entire area by every real estate company.
Then our computers sift and sort through all of the new listings, automatically finding and matching the homes that meet your exact specifications. The system then automatically mails, or if you prefer, faxes or emails you that information on a daily, weekly or twice-weekly basis, your choice.
My HomeFinder Service gives you access to inside information normally available only to real estate agents. From the privacy of your own home on a daily basis, you receive information about every single home available in the area of your choice, and you receive this information even before many other real estate agents have seen it!
As you receive information about homes you are interested in, you can study, compare, and drive by the properties on your own. When you find a home that you would like to see, all you need to do is pick up the phone, give us a call, and well make arrangements to get you inside the home at your convenience.
My HomeFinder team is totally service oriented. We are not salespeople. At no time will you ever be made to feel under any pressure to buy a home. When you find the perfect home, you’ll know it. And then you’ll tell us!

Please give me a call so I can help you start your search to finding the home you desire, in your price range and the time frame that works best for you!

Best regards,
Valerie O'Brien
Keller Willilams Newport Estates
949-478-2892
valeriejobrien.com
0 votes Thank Flag Link Sun Jun 24, 2012
If you're seeing the homes on "non-MLS" websites, it's possible that they still show "available" simply because the website is not updating the listing in a timely manner, or it may be done as a marketing tactic. If it still shows available on the actual MLS whan it's actually not, then it's usually the agent not properly updating the listing.

If you go on my website, you can search for homes directly on the MLS, and unless a listing is not properly updated by the agent, then it's available if it shows available.

I'm here to help! Please see my website for MLS access and my contact information, and please let me know if you have any further questions.
Web Reference: http://HighcrestRE.com
0 votes Thank Flag Link Sun Jun 24, 2012
Good Morning,
To answer your question with I don't know sounds is tough but I don't know! There seems to be a lot of homes that show active but are either pending or backups. Some banks require that their properties stay active umtil they are closed escrow. Some banks on short sales require the same.
We do have back up status for that, but some require active.
the sites you are looking at are also not as updated as the MLS which we Realtors use. There is also part of the MLS print that you do not see. Comments we can see that tell us if it is really available.
It is tough as I have many people sending me hommes saying they want to see them and when I go to verify they are available they are not. Wastes a lot of my time too.
Our system only allows a property to be on hold 2 weeks. So if 2 weeks goes by and the agent does not redo the Hold it will go back to active. I think many Realtors do not realize this til they use the hold do not show status and it happens to them!
Best way you can avoid wanting to see homes that are not really available is to find a Realtor in your area and work with them. This way you do not have to be disappointed on a regular basis!
I am in Lake Forest and would be happy to help you out in your home search if you need a Realtor.
Best of luck to you,
Connie Bramble
Prudential CA Realty
74-337-8718
0 votes Thank Flag Link Sun Jun 24, 2012
Hi Imtonif,
Great question. It drives BOTH buyers and agents crazy. I wish they would at least mark them somehow.
Good luck,
0 votes Thank Flag Link Sun Jun 24, 2012
Here's another viewpoint.

As a Realtor with occasional frustrated buyers, ( Frustrated at the lack of inventory, and available choices.) it PAYS the prospective buyer, AND their Realtor to keep an eye on such properties, perhaps even maintaining an "interest" touch with their listing agents, to be among the first to be notified if the existing transaction suddenly goes South.

I would wager that half of my closed transactions over the past 4 years, were on houses that had previously been status "B" or status "P" with another agent's buyers.

They became status "S" for me, and my buyers.
0 votes Thank Flag Link Sun Jun 24, 2012
Until a property is in status "Hold" ,"Withdrawn" or "Sold", they are still availabel on the MLS. Currently in zip code 92630, there are 196 properties in either "Back-up" or "Pending".
0 votes Thank Flag Link Sun Jun 24, 2012
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