The world of Real Estate could be an overwhelming dimension to a novice. If you are on the outskirts of the industry, you may find yourself trying to put all the puzzle pieces together in order to THINK you have a good grasp of what's about the come as a buyer or seller. This is when it's time to recruit a Realtor to guide you through the process. Today, The Goodwin Team is going to discuss the world of "CONTRACT" status. When browsing on the seemingly easy-to-use/easy-to-understand national real estate platforms, like Zillow or Trulia, you think you have all the answers at your hands. It's important to understand that these websites are NOT the Multiple Listing Service and could be missing vital information.
Let's walk through what "Under contract" or "Pending" means...Whether a buyer or seller, this status means the same to everyone. A property labeled as such has a deal on it. Sellers have accepted an offer presented to them. Buyers could have of had a formal inspection, or it could have been waived (a tale for another day!) and contracts have been reviewed and signed by both sides. This is comfortable terrain for both seller and buyer. With attorneys involved, deposits have been left and there is a binding document to protect both sides of the coin.
"But where does my down payment go", you ask? Good question! In most cases, buyers have employed an attorney to represent them in the transaction. This attorney should be a trustworthy resource who is knowledgeable of real estate transactions and closings, along with local and state laws. They should be able to walk a newbie through the whole process with confidence. The contract of sale will be received by the buyer's attorney from the seller's attorney. Once reviewed with the client, the buyer's attorney will send the buyer signed contract and their down payment check to the seller's attorney. This is when the seller's attorney will open an "escrow" account. The escrow is a separate account to hold the buyer's down payment in confidence, never to be co-mingled with other non-related funds. At this point, the sellers will sign the contract and the fully executed contract will be shared with all parties. The property for sale is now fully Under Contract or Pending.
Although a seemingly safe haven for buyer and seller, this point in the transaction is NOT the end all be all. There are still many more steps to complete the process. Stay tuned to see what's next. The Goodwin Team is here to aid in making this overwhelming experience a ton more approachable!
Annual Home Maintenance Checklist
