How to Make an Offer on an Active/Pending Modesto Short Sale
Navigating the world of retail can make a Modesto buyer’s head spin. Most sales are cut and dry. The house is up for sale and a buyer can make an offer. An active/pending Modesto short sale is not so straightforward.
Active and Sold
The easiest term to know in the retail world is “sold.” Once an offer on a Modesto house has been completed and all of the paperwork is approved, the word sold should appear on the sign out front. The new owners are likely to move in shortly and the listing is off the market.
“Active” is the opposite. This is a listing that is accepting offers, buyers may walk through, and the house is prepped and ready to sell.
Pending
“Pending” is that middle ground, where an offer has been made but nothing is set in stone. This offer can be rejected or even withdrawn depending on how negotiations are going.
Depending on how much there is to negotiate, a Modesto house can stay pending for a long period of time. A buyer that has their heart set on a pending house may be disappointed when it finally sells, but could still have a chance to make an offer if things go south.
Active/Pending
An active/pending sale is one where there is an offer pending on the Modesto house. However, the seller does not want to box themselves in and has opened up the opportunity for other buyers to make offers during negotiations. A second buyer’s offer will only be addressed if the first buyer’s offer is rejected or withdrawn.
It is a smart move on the part of a seller. Having multiple offers at once will increase the chances of the sale going through. Sometimes it does push the offers up in value as well, depending on how sought after the house is.
Modesto Short Sale
A Modesto short sale is not a typical home sale. This is when the homeowners are trying to sell their house for less than what they owe their bank on the remaining mortgage. Most of the time this is to avoid the bank foreclosing on the house. The bank must approve the amount that the house will be sold for, but often times it is a steal for a buyer. Banks do not want to lose money, but they really do not want to have to sell a property either.
Active/Pending Modesto Short Sale
An active/pending Modesto short sale is a complicated process for the bank, the seller, and the buyer. The bank has agreed to allow the seller to sell the house for less than the mortgage value; however, everything must be approved once there is an offer from a buyer. This approval process can take much longer than a typical sale. That means the buyer is waiting for the bank as much as the seller is.
Most sellers keep a Modesto short sale active/pending because the process is so long. They do not want to have a deal fall through with a buyer and have nothing to show for it. With multiple deals lined up, it will be easier to get the short sale done in the event the first offer does not work out.
Making a secondary offer on an active/pending Modesto short sale can be prosperous. The buyer can usually get a Modesto house for a significant discount. However, the time it takes to get this approved and make a deal is much longer than many buyers want to wait. For anyone that is not in a rush to make a deal, this type of sale can be great.
Trying to purchase a Modesto house that is a short sale can mean saving a lot of money on a house that is worth much more. There are likely some renovations and updates needed on the property, but a dedicated homeowner can make the property like new as long as there is no significant damage. Making an offer on an active/pending sale is a waiting game. Most buyers should continue looking at other properties while they wait and expect their offer to be rejected.