After several weeks of discussion with a property seller, you have now signed the contract to buy a house. Congratulations, you are one step closer to owning your dream home! You probably felt excited when the seller marked the property with a “pending sale” sign. But your work as a new homeowner does not end here.
What does “pending sale” mean?
When a property has a “pending sale” status, the seller has accepted a buyer’s offer and signed the contract. The seller can no longer market the property at this point, and no other prospective buyers can offer their bids. A “pending sale” status usually signals the buyer’s due diligence period.
What a buyer needs to do during this period
As a buyer, you have a lot of work to do during this period. This period is designated for you to acquire the necessary documentation and thoroughly inspect the property before finally sealing the deal. It mainly involves the following tasks:
- Mortgage application: Formally submit your loan application to secure financing.
- Appraisal: Following your mortgage application, an appraiser will examine the property to determine its market value.
- Home inspection: Hire a licensed home inspector to assess the home’s condition thoroughly.
- Documentation: Seek the assistance of a real estate lawyer to check the property’s public documents and issue a title report.
- Homeowners association approval: If your property is part of a homeowners association, you must confirm your future residency with the board and receive the necessary information related to the association.
- Final walk-through: Before closing the property transaction, you must conduct a final walk-through to ensure that everything is in place and in good condition.
You are responsible for thoroughly examining the property before the seller transfers it to you. It gives you leeway for possible negotiation when you find issues relating to the property’s condition or legal documents.
A pending sale could still fall through. Utilize this period to ensure everything is in order before you close the deal. Doing so could prevent future troubles such as legal disputes and expensive repairs.
