Pending! What Does That Mean?
Pending is something you might see on the Anchorage Alaska real estate yard arm, with a big starburst, online next to the Anchorage Alaska address of the property or something your real estate licensee might say about the status of a property. It generally means there is an accepted offer on the Anchorage Alaska home, condominium or invest property. Does that mean you can’t make an offer?
Many buyers believe there aren’t options available to them once an Anchorage AK home, condominium or investment property has gone into the Pending status.
If you have found an Anchorage Alaska property and believe it might be the home of your dreams but now you are disappointed because you see it is in the pending status there could still be some options worth pursuing.
Once the Buyer and Seller have signed the contract, agreeing upon the price, terms and contingencies, the property is entered into a Pending status. In the contract the Anchorage Buyer has a due diligence period for obtaining financing, completing inspection(s), receiving title information and even a neighborhood investigation. If for some reason the Buyer disapproves of something they have discovered during their investigations or the Seller doesn’t want to cooperate with addressing the Buyer’s concerns the Anchorage Alaska property could possibly come back on the market and be available for sale.
There are several options if this Anchorage property is the home of your dreams.
- You could play the waiting game and see if the contingencies are satisfactory to the Anchorage Buyer and Seller and do nothing unless it is returned to an available status. If the Anchorage Alaska home or condominium becomes available again then ALL the Anchorage Buyers have another shot. A good Anchorage Alaska REALTOR representing the owner would call all of those Buyer’s Representatives that have shown the home and let them know the property is back on the Anchorage real estate market.
- A more proactive strategy is to make a Backup Offer. Meaning the property is in a Pending status, but the second contract is negotiated between a second Buyer and the Anchorage Alaska property Seller. When they agree on price, terms and contingencies the back offer is in place. At this point the second Anchorage Alaska Buyer does not have to compete if the contingencies with the first Anchorage Alaska Buyer are not satisfied. The second Buyer merely moves into first position.
With any negotiation strategy there could be some positive and negative aspects. One being the backup Buyer may not have as much room in negotiating the purchase price, closing concessions or other contingencies with the Seller. Another could be the first Buyer may see this as a re-enforcement of their decision to make the purchase and would be willing to accept less from the Seller in negotiations of repairs, if applicable; because somebody else wants to purchase the Anchorage home.
If the market is slow in a particular price point and the number of Anchorage Alaska Buyers are small, then the backup offer may not be the best strategy. It might be best for it to come back into the Anchorage Alaska real estate market and renegotiate from a stronger position.
Strategies for negotiations of an offer or back up offer will vary, because every Buyer, Seller, and Anchorage Alaska property are different and have different situations.