"What is the difference between a listing that is "under contract" and one that's "pending?" is a questions that buyers often ask me. They're both sold, right?
Not exactly. Our local multiple listing service, MRED (Midwest Real Estate Data, affectionately known as Mr. Ed.) has two designations for properties that are no longer actively for sale.
UNDER CONTRACT - this is a property where an offer has been written and accepted by both parties. Generally, a check for around $1000 has been delivered with the contract but there are still contingencies that have to be met. These contingencies could include a home inspection, attorney approval of the contract, an appraisal, mortgage financing, appraising, a home sale, or any number of other things.
Find out what's happening in Winnetka-Glencoefor free with the latest updates from Patch.
The most common contingencies are home inspection and attorney approval - very rarely does anyone purchase a property without these two. Also, most contracts are also contingent on the buyer securing financing within a set period of time.
Many things can go awry during the under contract period and a fair number of homes will come back on the market.
Find out what's happening in Winnetka-Glencoefor free with the latest updates from Patch.
PENDING - indicates that all of the above have been satisfied. The inspection has been done and any issues have been resolved. The mortgage has been approved. Both the attorneys have signed off on the contract. It is at this point, that the buyers now put more money down on the house, normally 5% of the sale price. Now, both sides wait until the closing. date.
Not much changes at this point and the homes almost always go to closing.
If you have any other questions about the home buying or selling process in the North Shore, please give me a call!
