Pending listings? Does it make any sense to consider contingent or pending listings, or only active listings? If 'yes', how do you pursue

Asked by Michael, Lone Tree, CO Wed Feb 6, 2013

them? I'm trying to do as much research and prep as possible to ID homes I would consider buying. does it make sense for me to even consider homes listed as pending, or are chances of securing one very low? I don't want to cause someone to lose a home they are 'pending' on, but if they back out, I don't mind being in line. Advice very much appreciated.

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24
Joseph Arend…, Agent, Encinitas, CA
Fri Feb 8, 2013
Hi Michael,
Whenever I have clients who are interested in either a Pending or Contingent listing, I make sure to contact the listing agent and make them aware that my client is interested. I actually just benefited from this tactic the other day on a Contingent listing and we are now moving into escrow on that particular property. You definitely don't want to pursue Pending and Contingent properties but if you see something that really catches your eye, have you agent make the listing side aware you are interested.
If you are looking for an agent to represent you, feel free to contact us anytime.

Sincerely,
Joseph Arendsen
The Arendsen Group Inc.
888-503-3117
3 votes
Royce Kemp, Agent, San Diego, CA
Wed Feb 6, 2013
Focus on Active, anything else is spinning your wheels.
3 votes
Tnx for feedback
Flag Wed Feb 6, 2013
David Rudd /…, Agent, San Diego, CA
Sat Jun 22, 2013
Hi Michael,

In this market I would start out looking only at actives. Most pending and contingent homes are closing.

However, if you place an offer on an active property and your offer is not accepted (another one is selected), have your agent ask if they are accepting back up offers. It is amazing how many agents do not ask, and then complete the proper paper work to put their clients in first position should anything cause the original offer to fall out of escrow.

Just last month, had a client that put in a solid and strong offer, but the homeowner selected another one of the 23 offers. I asked for our offer to be first position back up, ten days later we were in escrow. 23 days after that my clients had their dream home. It's more work, but well worth it when your clients get the home they want.

David Rudd
858.395.6315

Kindred Real Estate

CA DRE# 01402946
2 votes
John Arendsen, Agent, Leucadia, CA
Thu Feb 7, 2013
Like they say in the car biz. It ain't a done deal til it's bustin bugs and burnin gas. I've been somewhat successful keeping in touch with pendings and contingents myself. But I certainly wouldn't let that keep me from staying in the hunt, Good luck.
2 votes
Michael, Home Buyer, Lone Tree, CO
Thu Feb 7, 2013
Thanks all the useful, though slightly depressing answers. I should have moved 6 months ago.

Sounds like being pre-qual'd is of little value, esp. if competing against cash investors?
2 votes
Get your pre-approval letter in hand, keep it updated and pick a nimble agent who can show and write an offer for you quickly. Or one who will find you a "pocket listing!"
Mary
Flag Thu Feb 7, 2013
Shanna Rogers, Agent, Murrieta, CA
Wed Feb 6, 2013
Hi Michael,

It really depends on how many Active homes are in the area you want to purchase in. If there are not enough properties for sale relative to buyers in the market, you might want to look at properties that are accepting Backup offers - especially if it's a property you really like. I've had several deals where the buyer who actually ends up getting the house is the 2nd or 3rd buyer (backup offers). If you do find properties that are in contract, have your Realtor contact the listing agent(s) to see if the seller is accepting Backup offers and if they are, you can submit an offer through your Realtor.

Good luck.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
2 votes
Thanks Shanna. Is there a simple way to determine (trulia, redfin, zilllow) is backup offers are being accepted?
Flag Wed Feb 6, 2013
Chad Basinger, Agent, San Diego, CA
Mon Jun 16, 2014
Hello Michael,

If you are interested in a specific neighborhood/zip code, then I don't think it hurts to look through the pendings/contingents. If you like any of them, I'd have your agent inquire to see how likely they are to close. If there is a specific house you are in love with, go ahead and see if they'll take a back up offer. Make sure to have your agent fill out the specific Back Up offer addendum and get the seller to sign, so that you would be in position number one in the event the current escrow falls out.

I do like your thinking as far as keeping your search open to possibilities beyond what is merely "active". Another idea to consider is having your agent send out a letter to the specific neighborhood you are interested in, seeking out properties that are not currently on the market. I have done this successfully for several clients and it can work for you as well.

Best of luck!

Chad Basinger, REALTOR, CPA, CFP
858-997-3704
chad@chadbasinger.com
Web Reference:  http://www.chadbasinger.com
1 vote
Gary Geer, Agent, Antioch, IL
Fri Jun 21, 2013
Michael,
Talk to your agent about this. Normally pending listings have all contingencies satisfied and are just waiting to close. Contingent listings should be considered as it's in the sellers best interest to continue to look at other offers during this period. Who knows your offer may be much better for seller.
1 vote
Annette Law…, Agent, Palm Harbor, FL
Fri Jun 14, 2013
Michael,
This is a great question to run by your real estate consultant.
How many of their listings 'close' with the first accepted offer?
How often would their seller have benefited by having an optional buyer?
How often does buyer number two pay MORE?
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Success is the byproduct of preparation....and luck.
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Be aware, this strategy is contrary to "I don't want to cuase someone to lose a home they are pending on." That comment does not give great confidence you are in a real home aquisition mindset.
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A back up offer will make the seller less willing to negotiate.
A back up offer sets the stage for the existing buyer to get kicked to the curb if this buyer listens to the unsubstaniated opinion of their home inspector. (Pay close attention to that last statement. INspectors gone "GOOFY" can sink an existing deal)
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A back up offer can make persent terms MUCH more attractive. Bigger downpayment, smaller percent fainanced, all bring a smile to a seller lips. If the existing buyers does something stupid, you will be in play. How far you can advance your positing will depend on local laws and real estate practices.
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As a listing agent I pursue back up offers. If a buyer reopens negotiations, there will be a suprise waiting in the wings.
_
How do you do it? With the co-operation of a real estate consultant. Your consultant will know the CO real estate market and shed more relevant light on what is probable in Lone Tree.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://RealEstateMadeEZ.us
1 vote
Blanca Dover, Agent, Camarillo, CA
Fri Jun 14, 2013
The best homes to consider are always active listings. Pending means they are just about ready to close the sale so that would be a waste of time. However, I have put in a few back-up offers on Contingent Back-up Sales, especially if they have been sitting there a while and have been able to close on them. Good luck!

Blanca Dover, REALTOR

Century21 Hometown Realty
Cell: 805-427-5646



Website: http://www.blancadover.com
Web Reference:  http://www.blancadover.com
1 vote
Alexander Ca…, Home Buyer, Miami, FL
Sun Feb 10, 2013
I would only pursue active current listings. te others are simply most of the time a waste of time
1 vote
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Robert Boern…, Agent, El Cajon, CA
Thu Feb 7, 2013
I agree that a "pre-qual" is of little value. But a pre-approval is a should be considered a requirement by your agent. If you submit an offer with a pre-approval and the house getting multiple offers, a pre-approval could mean your offering being accepted over another with very similar terms.

As I mentioned in your other thread, the offered price is not the only item sellers review when selecting and offer. Knowing how to write an offer which is competitive on all front is very important.

Since you mentioned your desired areas and price point in the other thread, I can tell you that you should not be too worried about all cash offers. Most of the time, all cash offers are coming from investors. The property you are seeking is not going to be a likely candidate for an investor because of the return on their investment. Right now, low dollar properties are being snatched up like crazy and they make sense as rentals. Larger single family homes don't "pencil out" as well.

I know you are looking for an agent in the area to help you with your relocation. As others have mentioned, I recommend you talk to as many as you can and see which one is the best match. You are going to be spending a lot of time talking to the agent you select and want to make sure you communicate well with each other.

Give me a call. I would be happy to share what i know about mortgages and real estate!

Robert Boerner
Gecko Realty
(619) 977-2262
1 vote
Yanoska Diaz, Agent, Miami, FL
Thu Feb 7, 2013
That very much depends on your market activity and the predominant Buyer. For example our inventory is currently very short, if a Buyer is able to secure a contract on a property chances are he will not let it go. A very large percentage of our Buyers are cash investors their offers have little contingencies or no contingencies at all. If your market is somewhat similar, my recommendation is to only pursue active listings.
1 vote
Luis Flores, Agent, San Diego, CA
Thu Feb 7, 2013
Michael,

The reality is that a home that is in "pending" status is currently under contract( In Escrow). The possibility of the home going back into "active" does exist. Numerous thing can cause this to happen(i.e. Loan problems, appraisal issues, inspection issue's, buyer backs out, etc...).
"Contingent" status indicates that the home is either a short sale; or an REO(bank owned) that is waiting for bank approval. The REO decision does not take very long; however, the short sale decision can take anywhere between 60 to 180 days; sometimes longer. I hope this information helps you out. Please let me know if you have other questions or concerns. Thank you for your time.

Respectfully,

Luis E. Flores
Keller Williams Realty
DRE#01883887
Direct: (619)988-6716
Email: luiseflores@kw.com
1 vote
Jerry Heard, Agent, San Diego, CA
Thu Feb 7, 2013
Michael,
A home that is contingent may be in that status for 2-5 months waiting for the bank to approve the short sale. Sometimes the homes are available to view during that time but most often not. It would not be a bad idea to make a backup offer on the home because many times the potential buyer won't wait around for the bank to approve the deal. If that happens, your offer along with many others may be reconsidered.
Pending homes are another situation. Those are ones that you want to keep on your automatic search so if they do fall out you will be notified as soon as they return to active status. Most homes in pending are not available to be viewed.
The best bet is to stick to homes that are active and make a strong offer on one that meets your needs.

Best wishes,

Local Help with Your Real Estate Needs

Jerry Heard
Your Broker
The San Diego Property Shop
http://www.TheSanDiegoPropertyShop.com
jerry.sdps@cox.net
Direct 619-920-9796
Office 619-269-5545
Fax 619-269-9168
CA DRE # 00648687
1 vote
Chad Basinger, Agent, San Diego, CA
Thu Feb 7, 2013
Hi Michael,

In my experience, yes, there are homes that fall out of escrow, whether they are in pending or contingent status. However, the percentage of homes that fall out that are in contingent is greater than those in pending, so the order or priority would be "active, contingent, pending". The caveat in this current environment is that most people are aware of the shortage in inventory, so for those who are under contract, they are less likely to back away knowing that it may be difficult to find something else.

A good agent will follow up on any property that their client is interested in, regardless of the status it is in. The agent should find out where they are in the short sale process or the escrow and how likely it is that the buyer is going to stick/or that the deal is going to close. Also, you can ask the listing agent if they are accepting back up offers and in the event the deal falls out, what their process will be for choosing a back up.

There is no doubt that it's a competitive market out there for buyers, so anything that can be done to give yourself as many chances as possible to secure a property that works for you is encouraged. There are many strategies that your agent should be employing. Be sure to work with a consummate business professional who is pro active and not reactive!

Sincerely

Chad Basinger, REALTOR®, CPA, CFP®
858-997-3704
chad@chadbasinger.com
Web Reference:  http://www.chadbasinger.com
1 vote
Rory Firks, Agent, San Diego, CA
Thu Feb 7, 2013
I would never recommend to a client NOT to make an offer regardless of the current status. Even if a property is currently in escrow especially in this market. I've seen plenty of places fall out of escrow because the buyers are caught up in the current market conditions. And short sales (contingent properties) that the buyers have walked for multiple reasons at no fault of the seller or property.

Fact is put a back up offer in and yours could be first in line should anything go wrong.
1 vote
Mary Lawler, Agent, San Diego, CA
Thu Feb 7, 2013
Hi Michael,
If you're not one of the first to see a home and write a strong offer in today's 92131, 92064 and Escondido markets, it is not generally worth writing a "later" offer. The market has made a very sharp change in the last 6 weeks - homes that lingered are being purchased and new listings generally are in escrow within 72 to 96 hours with multiple offers. There's usually a stampede of continuous showings the first 24 hours.
That usually means that if the buyer who was chosen, cancels their contract during the contingency period, there are likely others waiting who have already submitted strong offers. One of them would probably be ready-to-go. Unless you're offering cash and can close when the seller wants (quick close or lengthy escrow), coming late to the dance may not get you anywhere but the back of a long line. Sorry.

A home in pre-foreclosure is not on the market and may never go on the market. Often it's a struggling homeowner who is exploring options to get better loan terms. With the new Homeowners Bill of Rights legislation in California, these homeowners are able to get loan modifications and I'm seeing fewer and fewer distressed homes actually going on the market.

I am working my network to obtain pocket listings for my buyers to see. Pitch sessions and caravans are where I pitch my "coming soon" listings and my buyers' needs to my peers. Another agent may have a listing coming up that my buyers and I can see before anyone else even knows it's coming on the market. That's how I'm getting my listings sold and how I found a 3-bedroom condo for my buyer in 92131 this week. Still working on the 4-bedroom home, though.

Hope this helps,
Mary Lawler, Realtor
Realty Executives Executives (Scripps Ranch)
619-857-5881
mlawler@realtyexecutives-sd.com
Web Reference:  http://www.MaryLawler.com
1 vote
Salim Vasani, , Vallejo, CA
Thu Feb 7, 2013
I am not sure how the MLS in your region works. But, out here a Contingent can be a Contingent-Show or Contingent-No show. There really is no point going after a Contingent-No show. But for Contingent-Shows there's a possibility. Your Realtor can also call the Seller's agent to find out the status and if backup offers are being accepted.
1 vote
Scott Godzyk, Agent, Manchester, NH
Thu Feb 7, 2013
It would pretty much be a hige waste of time. You should certainly look at what is for sale first,. if there are absountely zero homes available, then you could check with listing agents to see if the sale is solid , are there are any contingincies and any chance it comes vack on the market to contact you. You may uposet some listing agents but may find something coming back on the market.
1 vote
Maria Gilda…, Agent, Manchester, CT
Thu Feb 7, 2013
Hi:
Pending listing means that there is already a contract in place. It is just waiting for all the contigencies to be satisfied or completed.

Even after all the contigencies have been met, realtors will change the status to closed transaction when the sale is consummated.

Search for homes which are currently active. And if you are working with a realtor, in case you do like a specific property, ask him/her to inquire about the status of the current contract and how close it is to being consummated. Or how strong the contract is?

Also, make sure you that you mention to him that in case the deal falls through, to mention to the listing agent to notify him.

Best of Luck
1 vote
Lionel Silva, Agent, San Diego, CA
Wed Feb 6, 2013
Hi Michael, I say absolutely! The real estate market is very competitive right now and if not considering contingents and pending listings you are limiting yourself at purchasing a home..Especially now!
1 vote
Thanks Lionel. If I find a pending listing i'm interested in, what should I do about it (.e.,g send to realtor, as him / her to do......?). Appreciate your time
Flag Wed Feb 6, 2013
Michael, Home Buyer, Lone Tree, CO
Wed Feb 6, 2013
How about pre-foreclsoures? Worth looking at? What is the process to secure one (major steps / time / probability)?
1 vote
Miekeba Jones, Agent, Silver Spring, MD
Wed Feb 6, 2013
Hi Lone, Its OK to consider listings that have a contract on them. Its not sold until its sold. It is less likely that you will secure a home that is under contract than one that is active. Maybe you could keep an eye out for houses under contract in case they fall through, you will be the first to react. Generally I show homes that are active. Homes that are under contract are sometimes used to show research of the area and how much homes are proposed to sell for.
1 vote
Tnx for feedback
Flag Wed Feb 6, 2013
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