Understanding the terms “In Escrow” and “Sale Pending” in the San Diego real estate market is essential when navigating this thriving industry. These terms play a role in the home-buying process, indicating the status of a property’s sale. What do they mean, and how can they influence your decision as a buyer or seller?
Understanding “In Escrow”
You’ll frequently encounter the phrase “In Escrow” when browsing through real estate listings in San Diego. What does it mean and signify? Essentially it refers to a situation where a neutral third party holds funds during the transaction process. When a property is marked as “In Escrow,” it indicates that an offer has been accepted by the seller and the buyer has taken steps to finalize the sale.
The important stages of the Escrow Process;
1. Opening of Escrow: This stage commences when both parties agree on a price and terms, with the buyer depositing money into an escrow account.
2. Due Diligence Period: In San Diego, buyers typically have around 10 to 17 days to conduct home inspections during this period. It allows them to examine the property by conducting inspections and negotiating any repairs carefully.
During this time, the lender has ordered an appraisal to ensure that the loan amount is appropriate. The buyer will then need to remove contingencies, such as obtaining loan approval and satisfactory inspection results, within the agreed-upon timeframe of around 17 to 21 days. Once all contingencies have been removed, the buyer’s deposit may be at risk should they back out and decide to cancel the transaction. You can find information about the stages of the escrow process in our previous post.
However, once all contingencies have been removed and the sale is imminent, it has not officially closed. The lender is still working on the final approval. 
Sale Pending
Putting in simple terms, “sale pending” can also mean the same thing as “in escrow.” This means that the sale is pending, and the buyer is able to get final approval from the lender and a successful loan.
Title Problems: Unexpected complications that can arise during a title search, such as liens, have the potential to delay the process.
Unsuccessful Negotiations: If there are any negotiations like those concerning repairs following a home inspection that fails to reach an outcome.
A buyer strategy: Making an Offer on Properties in Escrow or with Pending Sales
Identifying Opportunities in Properties Under Escrow
In a seller’s market, buyers must think outside the box. Properties marked as “In Escrow” or with a “Sale Pending” status may still be within reach. Here’s what you can do;
Backup Offers: If you’re fond of a house that’s currently under contract, instruct your realtor to inquire about submitting an offer. This will position you as the buyer if the current deal falls through.
Understanding Cancellations: Dig deeper into why a buyer might have withdrawn their offer. It could present an opportunity for you if it were due to issues like repairs identified during the inspection.
Continuing Your Search
Even if you’ve submitted an offer, keep exploring your home search in San Diego. The market’s competitive nature means that while deals occasionally fall through, it is not very common. However, being prepared can give you an advantage if your dream home suddenly becomes available again.
Navigating the changing real estate market with the McT Real Estate Group
In San Diego, the current market can be quite a challenge. Having a knowledgeable realtor by your side is truly invaluable. A skilled professional can help you navigate the terms and processes involved, ensuring you’re prepared to take confident action. At the McT Real Estate Group, we are dedicated to providing service and expertise to our clients. If you need any insights or assistance in finding your dream in San Diego, please don’t hesitate to reach out to us at 619 736 7003.
If you’d like, you can also check out our client references to get an understanding of the level of care and professionalism we bring to each transaction. Our ultimate goal is to make your home buying or selling experience as smooth and stress-free as possible. Remember, there are opportunities in the housing market. Understanding “In Escrow, “”Sale Pending,” or freshly listed. All it takes is the proper guidance to uncover them.