What does it mean when a property is Pending on my Statesville NC Home Search?

Recently I was asked about  the “status” of a property that was for sale in Statesville NCand what “pending” meant and it dawned on me that most buyers do not know the real estate lingo for the different stages a property may be in and what those stages mean so I thought I would pass that information along to you.  The status may have a different name and meaning in different states so be sure to check with a local agent.  The following are for the state of North Carolina.

Home is listed on the MLS:

The MLS is the local Multiple Listing Service that Real Estate Agents subscribe to that allows them to put the property details on a database that is managed by the local Realtor Association.  Our local Association is the Charlotte Regional Realtors Association.  This listing has all the details that the public will see plus additional information that only a licensed real estate agent subscribing to that MLS will have access to.  This information is agent to agent information or even agent to their office information.  The public information is the information that is picked up by other real estate sites you may use such as Realtor.com, Zillow, Trulia and others.

Active:

The home is available for sale.  Be sure your agent makes a call to the listing agent prior to looking at the home to determine if offers have come in or if they are currently in the middle of negotiations of an offer.  This is good information to have before you fall in love with a home.

Conditional:

This status is used when the seller has accepted an offer on the property but the buyer still has to do all their inspections.  In NC, buyers have a due diligence period that is agreed upon on the contract to do all their “homework” such as home inspection, termite inspection, survey, check on zoning, make sure they can get financing, get the appraisal back and so forth…..During this period, the buyer has the right to terminate the contract for ANY reason or NO reason.  After this date, the buyer is agreeing to go forward with contract and purchase the home.  There is a due diligence feethat may be negotiated in the offer that goes directly to the seller and in non-refundable unless the seller breaches the contract.  This fee is credited to the buyer at closing.  The seller may choose to still allow showings for backup offers during this time.

Contingent:

This status is used when a seller accepts an offer “contingent” on the buyer selling another property first.  The buyer already owns a home that has to be sold first in order to close on the new home.  The seller and buyer agree upon a certain amount of time for the home to be sold and if not sold, the seller may terminate and put the house “active” again.  The seller may also continue to show the property and take other offers on the home.  If an acceptable offer comes in, the buyer may be given a number of day to move forward and purchase the property by a certain date or terminate so that the seller can accept the other offer.  Hope

Pending:

This status means all conditions and contingencies have been cleared and the home is ready to close.  The attorney will complete their title work and prepare the HUD for review and closing.  A cash deal may go directly to pending status if the buyer chooses to waive all inspections but there may still be a due diligence period in the contract.

Keep in mind that a property is not SOLD until the deed is recorded!  ANY deal can fall through at anytime prior to that and may come back on the market.  If you are having trouble finding a home in the current inventory, ask your Realtor to check the contingent sales and conditional sales.  There may be one there that you may take a chance on.  There may also be  homes that are “temporarily off the market”, “expired” or “withdrawn” that the seller may still be willing to sell but just took a break from having their home listed.  Your Realtor can look through all these listings to find potential homes to fit your needs.

I have many homes listed in the Statesville NCarea and I receive calls all the time on properties that are already under contract.  Some buyers search sites that may not have the status updated yet and it still shows as an active listing, only to find out it is under contract or even sold already.  To save yourself some headaches, make sure the site you are using is updated frequently.

 

Homebuyer’s Checklist – What You Should Learn From Your Home Inspection | U.S. Inspect

Via Scoop.itStatesville Real Estate

Great Checklist for buyers to read prior to their home inspection.  Plan to be present and feel free to ask the inspectors as many questions as you have – After all, that’s what you hired them for. 
Via www.usinspect.com

Buying a home is not as easy as you think

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This week I wanted to talk a little about how to find a home in today’s market.  It is not as easy as some think.  The perception is there is a TON of  inventory out there and the prices have been dropping for the last few years so I should be able to find the home of my dreams at a huge bargain with no problems – right?  WRONG.  Let’s take a closer look at why this may not be true.

TONS OF INVENTORY:

Inventory depends on what it is you are looking for.  Sure there are currently 1090 single family homes for sale in Iredell County, but you are not looking at all the homes in Iredell County.  You are looking for something more specific.  Let’s say you want a home from $100,000 to $200,000 – that will narrow it down to 342.  You just want to look in Statesville NC – 166.  You want .5 acres or more – 90.  You have to have a two car garage – 49.  You can’t live without 4 bedrooms -10.  Get the picture?  The inventory gets smaller and smaller when you get down to what you are really looking for in a home.  In some price ranges, there is very little inventory to choose from and it does not take long to look at all the homes out there that fit your checklist.

PRICES HAVE BEEN DROPPING AND SHOULD GET A HUGE BARGAIN:

Well, based on what we just went over with the inventory, only 2 of the 10 are distressed homes (20%) and one of them is a 100 year old home priced 60,000 below tax value.  Now that could be your bargain – but if you were thinking of something a little newer, you might not get that huge bargain.

I CAN ALWAYS OFFER $30,000 LESS AND SEE IF THEY TAKE IT!

Who cares what the list price says!  “I say, let’s throw a really low offer at them and see if they are desperate”. Do you know how many times I hear this and just cringe?  Let’s look at this logically. If you are in investor, then you will not be living in the home and  your objective is to just get the best price on the property – no personal ties, no “goose bumps” and no attachment.  It’s all about price.  You don’t care how many times you hear the words “no” from the seller or “forget it and I am not countering either!”.  It’s all business.  But what about the home buyer that is looking for the home of their dreams?  Your objective is to get the best price for the home in this market with the least amount of stress.  This is why you have hired your buyers agent!  Their job is to pull comparables on the home you are interested in, make sure the price is REASONABLE for the current market and help you get the BEST price you can without overpaying.  Going in $30,000 less on a home that is already priced to sell will only get you off on the wrong foot with the sellers.  Sure, there is nothing wrong with going in a little under market value to see if the seller has any wiggle room – sometimes you get real lucky and catch a seller at the right time, but mostly they reduce their price very little.  If you are not willing to pay what the home is currently worth, you may find yourself with more headaches than you anticipated.

NOW I AM FRUSTRATED WITH HOME SHOPPING.

So many times, I see my buyers getting frustrated with the home shopping process and giving up or getting bummed out because they have seen so many homes and put in offers on several only to hear that they did not get the home.  Maybe there were multiple offers and your offer was not the best one, maybe your offer was too low and the seller could not lower their price anymore because they owed too much on the home, maybe the seller  just refused to “give their house away” even though it was overpriced to start with, maybe you were booted out because  cash offer came in before the seller signed the contract.  There are so many scenarios that could happen to derail your search for a home.

HOW CAN I CHANGE THIS SITUATION?

There are several things you can do to take some of the stress away from the home buying process. Consider your needs and wants again and see if you can live without some of your “must haves”.  Maybe you could live with a carport instead of garage, maybe you can make 3 bedrooms and a bonus or a basement work instead of 4 bedrooms, maybe .45 acres will be enough if the home is set on the lot well, maybe you can go up in price a little more to give you more options (although I don’t recommend this if you are on a tight budget- stick to the payment you are comfortable with).  Ask your buyers agent to suggest alternative things that could still get you a wonderful home, at a great price that will make you happy.

NOT WHAT IT APPEARS

Buying a home is hard.  Period.  The flood of foreclosures and short sales have not made it any easier for Real Estate Agents, Sellers or for buyers.  Sure the rates are real low and there are some great deals out there for buyers, but expect to make some concessions and even some renovations to get the BIG BARGAIN.  Set your priorities and make a list of what is REALLY important to you in your next home.  Features? Price? Location? If you want it all – be prepared to pay a fair price for it.