When Does A Sold Sign Go In The Yard?
What Does A SOLD Sign Mean?
When is a home sold, really? Is it when the SOLD sign appears in the front yard?
There are two steps to “sold”. The first step is when the Homeseller accepts a purchase contract from a buyer. That buyer has (typically) 30 days to complete the purchase and the seller cannot replace them with any other buyer, even if they are willing to pay more.
The home seller can accept a backup offer from another buyer. This is insurance in case the first buyer fails to complete the purchase. This is a little-used opportunity that we will discuss in another post.
The second step is the actual “sold” where the buyer has completed the purchase and the money and title transfer. This is ultimate meaning of Home Sold.
Is The Home Sold When The SOLD Sign Goes Up?
There are no rules on when this happens, it is up to the individual listing agent. Some will place that sign as soon as they accept a purchase contract. Others will wait until the current buyer has completed their investigations and the home is likely to close escrow.
This is why a home might sport a “Sold Sign” one day and then it is removed the next. A transaction can fall apart at any point before the close of escrow and a new buyer is needed before one can say it is a sold home.
What is the difference between “Sold”, “Pending” and “In Escrow”
“Pending” and “In Escrow” mean that an offer has been accepted, but the buyer needs to complete their inspections and finalize their loan. There is a chance for another buyer to get a backup offer accepted. “Sold” means there is no chance of a backup offer. This is placed after all contingencies are removed.
Are you getting ready to buy a home? You probably want to avoid these top home buyer mistakes! Click the buying mistakes tab on our Ultimate Home Buyer’s Guide