<p>A house that I am potentially interested was noted as “pending” on Realtor.com and in other real estate sites/apps for several weeks. It is now on the market as an active listing. When my agent asked why the house had fallen out of escrow, the seller’s agent said it had not been in escrow but had just been taken briefly off the market for some “repairs.” </p>
<p>This is an investor-owned flip that, prior to the “pending” designation, had been on the market for a fairly long time. Would there be any reason for the agent to lie about this? </p>
<p>Alternatively, would there be any reason for a seller to change the designation on a listing to “pending” – say, to generate competitive interest or something?</p>
<p>And relatedly, what percentage of listings marked “pending” eventually go back into active status (because they fall out of escrow or other reason)?</p>
<p>I can’t give you any numbers, but I’ve been party to lots of real estate deals that were pending repairs for work that was done without a permit. Sometimes the offers walk away, sometimes it the fact that people are walking away mean that the owners finally get the message that most people don’t really want to buy “as is” properties, especially if there are things that could turn out to not be allowed by zoning or the current building code. I recently had to tell a pair of old ladies they were going to need to rip the deck off the back of their house because the railings and the steps weren’t to code and it didn’t appear to have a foundation. The cost to fix the mess would easily come close to a new deck.</p>
<p>Thanks. On Realtor.com, houses show up as pending right when escrow is opened. Lots of places show as “pending” the day after they go on the market.</p>
<p>I’m not an agent and don’t have tons of experience. But the terms I am familiar with are: “active”-the house is on the market; “active option contract”: the house is under contract, but the contingencies (such as inspection, financing, etc.) have not been met. “Pending:” It’s not 100%, but it’s under contract, contingencies have been met, and it’s about to close.</p>
<p>Oh, I’ve also heard “active kick out,” which I believe means that the house is under contract, but the buyer has to sell their home first, so they’ve agreed to let the seller continue to market it. If the seller receives a better, solid offer, they have to give the buyer the option to go ahead and close the deal or get out of the contract with their deposit intact. I think that’s the way it works, but if a realtor reads this, they may correct me.</p>
<p>My questions relate to properties where the agent is indicating that the property is under contract and in escrow but contingencies haven’t yet been removed (and thus back up offers are being accepted, the property still show up on websites as for sale etc). Would there be any reason for a seller whose house has been on the market for several months to lie and say that a property is under contract when it is not? </p>
<p>In our state, “pending” typically means an offer is in place, but a contingency still exists. The biggest contingency, of course, is the ability of the buyers to finalize financing. That’s why listings remain pending until the money exchanges hands. Contingency also could mean “pending the findings of the inspection” or some other similar thing.</p>
<p>“Would there be any reason for a seller whose house has been on the market for several months to lie and say that a property is under contract when it is not?”</p>
<p>I do not see how this can be of any advantage to the seller. Properties that have been pending and then go back on the market usually raise some extra suspicion from potential buyers (what exactly went wrong during the time to make the sale fall through?) </p>
<p>Agree with thumpet - it would not be unreasonable from a buyer to request that info. </p>
<p>It is a common tactic to take a house off the market, wait a few days, then re-list it so that potential buyers don’t know it’s been sitting there for over a year. But I also don’t see the benefit of lying about it being under contract when it’s not. Maybe a real estate agent could comment.</p>
<p>Frankly, my impression is that there are so many circumstances that might apply that it is almost useless to speculate. Look at the property, compare it to others on the market, and have it inspected by someone you trust. This should give an idea of how much YOU are willing to pay for it. Either you have a deal, or you don’t.</p>
<p>Do not let this keep you from seeing the house or even making an offer (always with an inspection clause) after finding out what you can about condition, repairs et al. You are looking for a place to live and the selling/buying process will be ancient history, not something you have to live with when you move in. If this is a good house for you the marketing history doesn’t matter in the long run.</p>
<p>I looked at a house that was “pending” but it was really what someone earlier had described as “active, kick out”. We made an offer and the other buyer backed out and we got the house. It was complicated but there was no trickery.</p>
<p>I did see trickery where a seller would drop the price of their house, sometimes by just $5, in order for it to pop to the top of the list of new properties for sale. </p>