How likely is it that my parents can buy a house that has a sale pending?

Question

My parents' house burned down a few weeks ago and they are in immediate need of a new house. My cousin who's a real estate agent has been showing them houses. They went to look at a house that had a pending sale and fell in love with it. They did not know there was a sale pending at that time. However, the couple that wants the house is leaving the sale pending until they can sell their current house. My cousin is telling them to sign a contract now to pay full price on the house (the original prospective buyers got a discount) and to pay in cash (they're getting money from the homeowners insurance from the house that burned down to do this). Is it likely they can have this house, or is it more likely they'll have to look for another one?

Answer 1

The first house I bought had a sale pending on it before I could make an offer.  It's common for the deal to fall through, for one reason or another, such as financing, so your folks have a chance.  I just had the realtor keep an eye on the house, and when the deal fell through a week later, I had an offer in quickly.

I'd think it's more likely they'll have to look for another one, though.  Most sales don't fall through, and sellers usually will make some accomodation to allow buyers to close on the sale of their home before closing on the purchase of the new home.

Answer 2

I'm not sure how likely it is - but it IS possible. The seller can entertain all offers till it actually closes.

Nothing is final till closing.

Answer 3

Once an offer is made and accepted for the sale of a home a contract between the parties exists.

Your parents chances of breaching that contract is slim and none because the non-breaching party can sue not only for the loss of the contract, but sue your parents for interfering with a contractual relationship.  The suing party can ask for punitive damages from your parents (to punish them for their wrongful conduct) and punitives are usually ten times the amount of the actual money damages.

Why not have them look at another house and avoid all of this?

Answer 4

Wow, look at all of the Nay Sayers!

I think they have a really good chance because the other buyers have a contigency, and a tough one, the sale of their home.

When ever that offer expires (it will, they are not allowed to make them wait for years) the sellers will snatch up your parents offer.

I think their odds are very very good.

Answer 5

If a sale is pending, that means someone else is in active negotiations.  The seller's can't entertain other offices while it is in that status.

Answer 6

It is very likely, especially if there is a termination clause in the current contract to purchase this house by the other couple.

It may be less expensive for the seller to pay whatever termination penalty there may be in the contract, and then sell it to you parents, then it would be if they stayed with the current buyers.

Answer 7

Probably not good..................!=(sorry.............