Reader Poll – Should We Use This Rider On Real Estate Signs?

We had my parents over for dinner last night and of all things, the conversation came around to the topic of real estate signs.

My mother commented that friends of hers had noticed two of our real estate signs in her neighborhood, and she was curious if they were under contract. In fact, she assumed they were not because there were no “pending” riders on top of the real estate signs.

Her assumption is the very reason that we do not put pending riders on our real estate signs, but I’m willing to conduct a reader poll (below) to see what you think about my rationale.

Pending Riders On Real Estate Signs

There is an important reason why real estate agents put pending riders on their real estate signs. It’s a marketing message to the neighborhood that says “I sold this home, I could sell yours too!”

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For that reason, it makes smart sense to use a “pending,” “sale pending,” or “under contract” rider when a real estate agent has received a valid contract on a home. But you have to wonder if it is really in the best interests of the home seller.

A home seller chose to hire my real real estate company to sell a home, not to get it under contract.

My thinking is that currently only 36% of homes under contract actually proceed to a closing (source: Tallahassee MLS), so are we sending the wrong signal to prospective home buyers? Are we chasing away those that are not willing to put a back-up contract on a home?

So I’ve decided to conduct a survey about whether or not pending sign riders should be used by real estate companies.

Poll: Should We Show Pending Status On Real Estate Signs?

Should Real Estate Signs Show When The Property Is "Under Contract"

View Results

loading Reader Poll   Should We Use This Rider On Real Estate Signs?, Tallahassee Real Estate Loading ...

I hope you will continue to check back and see what our readers have to say about marketing a home for sale and whether or not “sale pending” riders on real estate signs are doing a disservice to the home sellers.

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About Joe Manausa, MBA

Joe Manausa, MBA is a 22+ year veteran of real estate brokerage in the State of Florida and has owned and managed his own company since 1992. He is a daily blogger with content that focuses on real estate analytics and providing his clients with a tactical advantage in today's challenging market.

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Comments

  1. Prime example of why NOT to put “Pending” ridder up… My clients were asking to see several homes, I mentioned another one to them, and they said they would have loved to view it, but it has a pending ridder on it, so ruled it out. I knew that it was going to go back on the market, so told them they should view it and when we did they fell in love and wrote an offer that evening.
    Bottom line, they got the house they wanted!! But would have not considered looking at it or mentioning it because of that Pending sign ! That Pending sign is just bragging rights for the listing agent, and I don’t put that on unless the sellers asks me to do so. I explain that it will practically ‘take their home off the market” and some change their mind.
    It’s not sold until the new buyer has the keys!!

    • That’s what I always figured Marti. Nothing good is happening for the property owner with a pending rider.

      • That’s right..nothing good for seller or buyers, both loose out with those kind of riders… and sometimes the listing agents forget to take them off after it’s back on market! Really a disservice, and wastes time for everyone!

      • Mack Sookdew says:

        The only time we put a rider is when the property is SOLD. That is, when the bond finance has been granted and the transfer process has began.

  2. Steve Ervin says:

    Yard signs generate leads. as the first comment here showed….announcing that the property MAY not be available any more is a good way to eliminate leads that may have resulted in a sale of another property.

    My company provides realtors with a system that is designed to generate tons more leads from the yard signs. We provide the Realtor with a rider thay says “FREE AUDIO TOUR 24HR”with a toll free number and property code. these riders generate a constant flow of leads from the day the yard sign is installed until the day it is removed. we strongly discourage the addition of “under contract,” “sold,” “pending,” etc. to the yard sign. In fact, even AFTER the property has been sold we recommend the sign be kept in the yard as long as possible to generate MORE leads.

    I know Realtors feel good when they get a contract on a property and want to tell the world. But seriously why would you cutoff a powerful source of SERIOUS buyer leads? Oh let me correct that. Just under 1/2 of the people who call and alive a house to sell indicate they are not planning to list their house until they find something that they would like to buy. In other words those yard sign leads are ALSO a powerful source of NEW LISTING leads. Again why would you want to cut off a flow of not just buyer but also seller leads?

  3. We always skipped the “pending contract” homes that had signs on them mainly because we felt we had lost a bargaining chip since the home already had an interested buyer. We figured it would make it difficult to offer a price for what we thought the home was worth if someone had already made an offer, kind of a “too little, too late” feeling and that we may end up paying more than the home is worth or more than we think it is worth, so we skipped the entire hassle to begin with. If a Realtor wants to brag about their sales, then wait for the “SOLD” sign! I feel the SOLD is what makes potential future clients take notice when you are driving through a neighborhood and see several SOLD signs from specific Realtor’s.

  4. Holley Ewell says:

    I work with a larger majority of buyer than seller clients. While I certainly understand the desire to generate more leads off of a yard sign, and I certainly understand the need to continue marketing some sales especially short sales, that are rarely short in time and frequently come back on market. I personally feel that a pending rider is not as accurate or useful as an Active with Contract, which is a category that was created in our MLS to explain the vast amount of short sales. Using this rider helps to better inform the public as it is a good talking point to explain to clients. It also informs while allowing the client the option to present an offer if they desire and still advertise the property for the seller in case the current offer falls through.

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