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Category: Useful articles

  • Home Energy Cost: The Real Deal on Big Bills That Come With a House

    Home energy cost is not something people always think of when it comes to buying a house. But don’t get consumed by the details of finding and buying a house without considering the potential bills you’ll have to pay every month for heating, cooling and more.

    Home energy cost considerations

    Even an affordable mortgage payment could quickly tip into the pain point if your new home comes with a monthly utility outlay that you weren’t expecting. So what factors should you consider? Everything from your electric bill to your heating are part of your home energy cost.

    How to do that math:

    You might want to hire a professional to determine the home’s overall energy costs before committing to a down payment. Energy audits cost a few hundred dollars but could save you from countless headaches (and costs) down the line. Not only will they give you a good idea of what’s in store, they will also point you toward fixes you can install so you’re not facing the same bills as the previous owner. The federal government’s Energy.gov site has guidelines for home energy audits, and tips for a DIY version. If you don’t want to go that far, here are some specifics to consider:

    Heating and cooling systems

    Heating and cooling can consume 45% of a house’s energy costs. The layout of the house will be a factor in energy costs. Vents located under windows are inefficient, and some rooms may not even have vents. In colder climates, remember that heat rises. High ceilings can result in wasted energy and added heating costs every winter. In tri-level houses, the upper floors will be warmer while the ground floor will be colder.

    Consider how much alterations might cost. In-floor heating can save you up to 40% of energy costs, depending on the system. To have a professional install a hot water radiant floor heating system would cost about $6 to $15 per square foot.

    Get all the information available on the house’s furnace and air conditioner. Find out the seasonal energy efficiency rating (SEER) for the house’s air conditioning system. For gas furnaces, you need to know the Annual Fuel Utilization Ratio (AFUE). If the house’s heating and cooling systems are 10 to 15 years old, or have a SEER of less than eight, it may be necessary to replace them.

    Appliances energy costs

    Did the former owner of the house throw in some appliances as part of the package? Although this gesture may save you money in the short run, be aware that older appliances can be much less energy efficient than new ones. Inefficient appliances eat up energy and can cost you hundreds of dollars over time. Research the make and model of any used appliances and assess whether they will incur higher energy costs than if you bought new ones.

    Tax credits

    State and federal programs might offer tax credits or other deals, such as grants or discounts, if you replace older appliances or heating or cooling systems, like an aged boiler, with newer, more energy-efficient versions. Some localities offer free energy audits, too. It might be worth asking about such programs if you are looking at an older house. Maybe the efficiency ratings are low, but if you love the house, and there’s enough deals available that you could upgrade relatively painlessly, it might still be worth purchasing. The key here is knowing the facts so you can judge what your bank account can handle.

    Infrastructure

    Check features such as windows, doors, insulation and siding for efficient energy usage. You can hire a professional to use a thermal camera to see where heat escapes, or conduct a blower-door test to identify air leaks by using a large fan with an airtight skirt that blows air out the door, although those tests could prove expensive. Insulation in the attic should be thick enough to hide all of the studs. Weathering and material aging can cause problems with siding, such as cracking, rotting or cupping, so check its condition too. Leaky windows glazed with putty can be reglazed, or consider buying double-pane windows. These will run you about $600 for moderate quality or up to $800 for high quality.

    Architectural features

    Big homes mean bigger energy bills too, so consider size in relation to your ongoing energy bills when you look at homes. A big stairway in the entryway means a lot of wasted heat each time the front door opens. Beautiful cathedral ceilings can bump up energy bills too. Walls of windows can afford a lovely view, but the added sunlight can strain your air conditioning bills in the summer, while leaks will raise your heating costs in the winter.

    Energy costs: an informed decision

    Only you can decide whether a home’s energy costs are worth the selling price. Your dream home may not be so ideal if the energy bills deplete your savings. But it could be worth investing some money in upgrading the house’s systems and features.

  • 5 Reasons to Hire a Property Manager

    Sometimes, it can be hard to admit that we need some help – particularly when admitting that fact may cost us some money. But, for the group of homeowners who not only own a primary residence, but also have one or more income properties, how much is too much?

    As a landlord, income property owners are responsible for a laundry list of tasks that include, but are not limited to finding and retaining tenants, managing routine maintenance and repairs, collecting rent, handling tenant complaints and, frankly, just being available in case of an emergency. And, yes, that is in addition to any day job the income property owner may have, too.

    When income property owners decide to hire a property manager for their investment properties, guess who handles that laundry list of “landlord” tasks? Not the property owner!

    Are you an income property owner who may need a little help? Here are five reasons it may be time to hire a property manager:

    1. You own multiple properties or rental units. Maybe managing one tenant is doable while balancing life’s other priorities – and even that’s a maybe. But, if you are an income property owner with multiple homes or other rental units, it is understandably difficult to maintain the properties and manage the tenants. It could be time for you to contact a reliable property manager who can help to lighten your landlord’s workload.

    2. You don’t live near your rental properties. What do you do when you live a few states away from your income property and it is time to show it to potential new residents? What if your tenant contacts you in the middle of the night with a plumbing issue or other pressing problem? When you don’t live near your income property, it may be more cost-effective and efficient to hire a property manager.

    3. You don’t have a lot of time to devote to managing your property. Is maintaining your income property and keeping tenants happy your only job? It certainly can be a full-time job! So, if you’ve got a career in addition to owning a rental property, you may need to decide how much of your free time you’re willing to devote to being a landlord. If you’re having a hard time wearing all hats, you may need to hire a property manager.

    4. You are not (and don’t want to be) familiar with landlord/tenant laws. In addition to all those previously listed landlord tasks – you know, maintaining your property and managing your tenants – a landlord also needs to be familiar with housing regulations and property laws. There are local, state and federal regulations that landlords must follow. How can you be sure you’re in compliance? A property manager can keep you and your property up to date on the latest laws and regulations.

    5. You can afford it. Perhaps this should be number one on the list. But, if you’ve seen yourself in all other listed reasons, this may be the last thing you need to evaluate before hiring a property manager. Keep in mind that they typically function as independent contractors and most property managers may take a flat fee of one month’s rent or anywhere between around 5-10% of your monthly rental fees. Do the math and decide if you’re able to afford that kind of sometimes-invaluable help.

    As an income property owner, it may be difficult to admit that you need the help of a property manager. But, if you already can admit that you’re struggling to properly maintain your property and manage your tenants, the easy choice for you may be enlisting the help of a trusted property manager today!

  • 3 Sneaky Ways to Make a Small Home Office Look Huge

    The struggle of the way-too-small home office: a space that needs to be functional often doubling as a guest room and the holding pen for all the random stuff you couldn’t find a home for elsewhere. And did we mention these rooms are often tiny? You spend many of your waking hours in this small, cramped place. So, how can you figuratively supersize one of the hardest-working and smallest rooms in your home?

    1. Pick the right-sized furniture

    One of the worst home office fails? Furniture that simply doesn’t fit! Just because you want a large work surface (who doesn’t?), it doesn’t mean you want to overwhelm your space with a massive CEO-style desk. Start with the right-sized desk, and orbit other furnishings around it. There isn’t a formula for size; the more compact you can go, the better. The small-home mecca otherwise known as Ikea offers countless affordable desk options. Take measurements of your room before you shop, and don’t forget to account for other furniture that needs to go in the tight space. And maybe factor in a bit of walking space, too. Find a desk that has ample storage and just enough surface space for your computer. If you primarily use a laptop, you can get away with a small laptop desk for tight spaces. For bigger devices, consider a storage-rich desk that’s both stylish and sturdy.

    When it comes to your chair, you want comfort, but you don’t need the gargantuan seat on wheels that you’d see in an office building. Pro tip: Go for a stationary chair with style. Standard dining chairs work well because they’re smaller than most office chairs, but they have high backs, so you don’t have to worry about being down too low. Dining chairs are a lot more attractive than office chairs, and they just blend in better.

    2. Find a place for everything

    On websites, floating, open shelves look amazing. Know why? Because they’re styled for photos, not living. They probably hold about half the stuff you really need. Your pile of crumpled and mismatched paper? It’s not nearly as eye-pleasing as the perfectly stacked piles you see in design books. Here’s a good way to leverage wall space: Use it to hang file holders. You’ll find plenty of options at The Container Store or any office supply retailer. Every item should have a dedicated place that’s not your work surface or the floor.

    If you can squeeze another piece of furniture in your room, Petty suggests a closed cabinet. A stylish armoire could be a nice touch. Use bins to store your office wares inside. Purchase cord organizers and tuck away that laptop when you’re offline to make everything look seamless. If you must leave things out, then do it in style.

    3. Have fun with decor

    One of the easiest and most cost-effective ways to make your work ambiance more Zen is through color. You can paint, but a hued wallpaper looks great, too. The key, productivity-wise: You want a design that’s inspiring but not distracting.

    While overhead lighting is the best lighting for task-orientated work, a desk lamp can add a great decorative detail. Don’t opt for one that looks too utilitarian. With practically no effort, you can find options that are stylish, attractive, and affordable (the trifecta!).

    One thing to skip: rugs. Chairs are harder to move on rugs and placing them under a desk ends up cutting the rug off awkwardly.

  • Staged Home Living

    Life in a staged home may seem perfect to some, but there is plenty of work that goes into maintaining a perfect house. With each room comes a set of responsibilities that ultimately contribute to maintaining that immaculate appearance

    Home staging tips often touch on one important point: You have to be prepared to maintain a state of perfection from under your sink to within your bedroom closet. While certainly not impossible, this takes dedication. This can also pay-off handsomely in the end, when homebuyers, enthralled with the state of your home, begin making offers. There is a lot that goes into perpetuating perfection.

    Here are tips, room-by-room, on how to live in a staged home:

    The bedrooms
    These rooms tend to collect clutter. To alleviate that, it is time to make use of those nightstand drawers, and possibly under-the-bed storage. While it is OK to keep maybe a book or two, – maybe home staging books! – and a lamp on top of your nightstand, everything else – tissues, glasses, etc. – should be stowed away in storage somewhere accessible yet hidden. Clothes should also be neatly stored. Make sure to consistently put clothes in the hamper. In a staged home, you’ll probably be doing laundry often anyway – to keep towels, dishcloths, and other similar items clean. Also, it is crucial that everyone in every bedroom makes his or her bed immediately after waking up in the morning.

    The kitchen
    Air freshener is your best friend in a staged home. Of course, you will probably end up cooking in your staged home. Even a smell can turn a potential homebuyer off, though. Use air freshener to ensure your home smells as perfect as it looks. Clean every surface after each meal cooked, as well. There should never be dishes in the sink when people are touring the home, either so clean them or place them in the dishwasher right away.

    The bathrooms
    Your bathroom should appear as though no one uses it. That means storing away shampoos, soaps, and razors after showers, and cleaning every day. If you have more than one bathroom in your home, have everyone share one to reduce the amount of cleaning required. This is where laundry comes into play again – every time someone uses a towel, it should be washed, rather than hung up to dry, to avoid any sort of clutter at all.

    Other rooms and spaces
    You can treat the family and living rooms similar to bedrooms – plenty of hidden storage space, spotless floors and no clutter whatsoever. Also, it is important not to forget closet and pantry space. While storing clutter away is important, overfilling closets and pantries will make them seem tiny. Organize these spaces to ensure their sizes are accurately represented.

    Prioritizing perfection is paramount in a staged home, but if you can maintain it there’s a good chance buyers will fall in love with your spotless house.

  • What is a Purchase and Sale Agreement?

    When it comes to a real estate transaction like buying a home, a lot of important paperwork needs to be completed before you can call a home yours. One of these important pieces of paperwork is a purchase and sale agreement.

    To help you navigate this document, we’ll go over what a purchase and sale agreement is, what makes up the agreement, and what happens after the agreement is signed. So whether you’re selling a home in Boston, MA, or buying a home in Dallas, TX, read on to learn more about what goes into a purchase and sale agreement during a real estate transaction.

    What is a purchase and sale agreement?

    A purchase and sale agreement, PSA or P&S for short, is the document received after mutual acceptance on an offer. It states the final sale price and all terms of the purchase in a real estate transaction. PSAs can vary by state but they typically consist of the final sale price, earnest money details, closing date, title information, and contingencies agreed upon by the buyer and seller. Additionally, other details will be outlined in the agreement regarding timelines and anything else the buyer/seller requests.

    Who drafts the purchase and sale agreement?

    Depending on the state where your dream home resides, either the buyer’s agent or the real estate attorney will draft up the contract. In states where escrow agents handle the closing process, the buyer’s agent is responsible for preparing the PSA document. In areas where attorneys handle the closing, the attorneys will prepare the document. The buyer, seller, and their respective agents will sign the document.

    What does the purchase and sale agreement consist of?

    The specific items in this contract vary by state, but will almost always include the following:

    1. Final sale price: This is the purchase price agreed upon by the buyer and seller. Note that this price might change during negotiations before the closing date. For instance, if the buyer’s home inspection turns up a problem with the home, the buyer may be able to negotiate a reduced purchase price.
    2. Earnest money details: The PSA will include information on the earnest money deposit, such as the dollar amount and instructions for making the deposit. In most areas, the buyer will need to deposit a personal or cashier’s check within one to three days of mutual acceptance. The check will be held by a neutral third party until the completion of the deal.
    3. Closing date: On your closing date, the purchase will be completed, the transfer of property will be recorded with the local government, and the seller will receive the money for their home. Usually, you’ll sign all the necessary paperwork a day or two before your closing date. Your closing date may change, however, due to unforeseen events, such as your financial paperwork taking longer than expected.
    4. Title insurance company: Information about your title company will be included in the PSA document. As the buyer, you always have the right to select a title company. You should talk to your agent or attorney if you have any questions about choosing a title company
    5. Title condition: The PSA will include an agreement that the seller will provide a clear or marketable title of ownership to the buyer.
    6. Contingencies: Contingencies are conditions that must be met in order for the home purchase to be completed. If one of these contingencies is not met, the sale may be canceled by the buyer or seller. Here are some examples of common contingencies:
    • Inspection contingency: This contingency allows the buyer to have the home inspected before going ahead with the purchase. If the inspection turns up a problem with the home, the buyer can renegotiate with the seller, who may repair or offer a credit for the problem. If the problem is severe, the buyer can back out of the purchase without losing the earnest money deposit.
    • Financing contingency: This contingency requires the buyer to get approved for a mortgage before making the purchase. If the buyer is unable to get mortgage approval they can back out of the deal.
    • Title contingency: This contingency gives the buyer the right to review the home’s title for problems or conflicting claims of ownership. If the title review turns up a serious problem with the title, the buyer can require the seller to satisfy them before the closing date. If these items are not cleared before closing, this contingency allows the buyer to walk away from the deal.
    • Appraisal contingency: This contingency allows the buyer to back out of the deal if the home appraisal reveals that the home is not worth as much as the buyer intended to borrow and pay for it.
    • Home sale contingency: Less common than the other contingencies listed above, this contingency gives the buyer the right to back out of the deal if she is unable to sell her current home.
    • Addendum: An addendum, also known as a rider, is any additional request from the buyer to the seller that is not included in the actual PSA document. Examples may include a buyer’s request that the seller pays part of the buyer’s closing costs, or that the seller includes appliances or furniture not originally included in the home’s sale price.

    Purchase and sale agreement vs. purchase agreement

    The purchase and sale agreement may sound similar to the purchase agreement, but they shouldn’t be confused with each other. A PSA outlines the specific terms in the transaction between the buyer and seller while the purchase agreement is the final paperwork signed by both parties for the sale of the home. Once the details of the purchase and sale agreement have been signed and covered, the parties will move forward with the sale of the home by signing the purchase agreement.

    What happens after a purchase and sale agreement is signed?

    After the buyer and seller agree and sign upon the terms of the PSA and the earnest money is deposited, the buyer and third-party companies will begin the home inspections, title searches, loan agreements, and anything else outlined in the agreement that needs to be checked. It can take several weeks for the finalization of the purchase and sale agreement if problems arise during an inspection which can lead to negotiations and counters. Once the PSA is signed the buyer has finished the inspections, and other requests are outlined, the buyer will sign the purchase agreement at closing and receive the keys to their new home.

  • 5 Questions to Ask Before Adding an Addition

    If you’re a long-time homeowner whose home just isn’t measuring up to all your needs and wants anymore, you could consider adding on to the home you love instead of abandoning it altogether.

    If you’re considering adding on to your home, congrats! But before you schedule an oh-so-gratifying demolition day, consider a few things first. Here are five questions to ask before adding on to your home:

    1. How much do I want to spend?
    Obviously, you’re not going to blindly embark on a home renovation project without considering price. But, when it comes to adding on to your home, you need to get a few estimates from the professionals who will complete the work—once you do, be sure to account for a few overages before committing to the project.

    2. Will the addition be worth it?
    Keep money in your mind, maybe we’re talking about finances here. But maybe we’re talking about your quality of life in your home. If you intend to sell your home after adding on, you need to consider the resale value and how the addition may return your investment. If you don’t intend to sell, consider how the addition may enhance your lifestyle at home.

    3. Would remodeling be a better option?
    Always wanted a home office, but never seemed to have enough rooms to give yourself the space? Don’t simply start breaking down a wall in your home to add on the office. Instead, survey your current space. Are your children off to college—or will they be soon? Could you finish your basement and create several new rooms? It may be more economical to make simpler renovations to your current home rather than adding on. Look at all possibilities before you begin major construction around your home.

    4. What regulations do I need to follow?
    Unless you live in some remote area with very few rules, it is likely that you’ll have to follow some restrictions when it comes to adding on to your home. Before you start spending and break ground on all your enhancements, contact city or county government offices to see what rules you may need to follow during the construction process.

    5. Can I afford this in the long run?
    Yes, you considered the amount you would be spending on your renovation project in the beginning. However, some home additions can tack on additional costs that last for the long run. Consider the extra costs of heating and cooling your home once you add on. Also think about an increase in your property taxes. Don’t forget to account for any extras you’re adding in too—you know, like a hot tub or additional bathroom. Those extras can add monthly expenses. Make sure you’re prepared for any extra costs your addition may bring.

    Adding on to your home is a great way to make it last. But before you break ground, you need to know that your addition is the best option for you. Ask questions about the addition up front so you don’t face any surprises during your project.

  • 6 Housewarming Party Tips

    In the process of moving into a new home? Well, don’t forget to christen your new space with a housewarming party! We know, we know, the last thing you may feel like doing when you’re in the middle of unpacking boxes and setting up your new home is entertaining. But you may be pleasantly surprised by how it feels to take a minute, welcome a few friends, meet a few neighbors, and gaze at your new purchase.

    And, trust us, when you throw a housewarming party, your friends and neighbors are not expecting your new home to look perfect, but you can bet they are excited to get a first look at your new space! Need some motivation to get your boxes put away and at least a bit of décor up on your walls? Here are five tips for throwing an awesome housewarming party:

    1. Get Planning
    Decide on a date and time for your party. Once you set the date, determine your guest list and send out your invites. Use regular mail, email, or social media to get the word out. Remember, it is customary for guests to bring a gift to a housewarming party, so if you prefer that your guests just come to have fun, be sure to indicate that in your invite.

    2. Choose a Theme
    Here is where you can have a little fun before your party even starts. When it comes to housewarming parties, you can host anything from a casual backyard BBQ to a fancy dinner to an unpacking party—yes, you could put your guests to work when they come to the party!

    3. Include a Tour
    Just as guests pretty much plan to bring a gift to a housewarming party, they also plan on receiving a tour while they’re there. Of course, you can keep it traditional and simply parade guests through your home to show off the new space. But you also have a unique opportunity to add to the fun of your event. Offer up a non-traditional tour by creating a scavenger hunt through your new home. Deciding between a few colors in certain rooms? Let guests weigh in while they’re on tour!

    4. Let Guests Help
    In addition to asking guests to weigh in on paint colors or décor while they’re in your new home, you also can rely on them to help with the night’s menu. Plan to provide the main course, but let guests bring their favorites when it comes to appetizers, desserts, or drinks. This is a great way to beef up your recipe collection or stock your bar, too!

    5. Invite Guests Back
    The best way to end an awesome housewarming party? Don’t let the memory-making stop. You can ensure your new home is always full of fun and friends by giving your guests a way to remember how to find you. Send your housewarming party guests home with a memento that includes your new address. Anything from personalized post-its to custom-wrapped candy bars can include your address. Get creative when thinking about how to send your guests home after your party.

    6. Don’t stress yourself.
    A final tip for hosting a great housewarming party? Don’t stress. House cleaning and care are all a part of being a homeowner. If those tasks don’t get perfectly done before your party, it is OK. Remember, your guests are interested in seeing your home, but above all, they’re there to support you in your new venture!

  • What Small Homes Can Teach You About Living With Less

    Need to declutter?  Anytime is the perfect time for getting rid of all the unnecessary stuff that accumulates in your home. How does it manage to pile up? Didn’t you just do this last year? Maybe you should just throw it all away—for good. In fact, that’s what a lot of people are doing now. You’ve probably heard about the trend toward living with less—fewer possessions, less space—whether it’s zero-waste living or the tiny house movement.

    There are two factors driving people toward small homes today: the economy and the environment. They are generally more affordable, and for home buyers, that means smaller mortgages. They are cheaper to maintain as well. Building and maintaining large houses have an impact on the environment. A large house takes more building resources and requires more maintenance than a smaller house. People are willing to go smaller to simplify their lives.

    If you’re squeezed into tight quarters or looking to downsize, here are some top tips to maximize the space and storage:

    Prefer an open plan

    When space is limited, you don’t want to carve it up. An open view with clean lines makes a space seem larger.

    Make the most of natural light

    Abundant natural light makes your home feel larger, so capture as much of it as you can. Don’t have floor-to-ceiling windows? Mirrors expand and reflect light. You can transform a small room into a larger and brighter space by using illusion wisely.

    Use a minimalist color palette

    You want to avoid excess in a small space—too much stuff, too many frills, too many colors. Stick to one or two similar shades, max, preferably paler ones that help maintain a light feel.

     

    Built-in furniture is key

    Built-in furniture is possibly the most efficient furnishing solution for spaces of limited dimensions: it frees up valuable floor area makes the space less cramped and unifies the decor.

     

    Make your furniture work double duty

    In a small space, everything has to earn its keep. Furniture can be an effective room divider. It is an excellent solution for studio apartments where different functions share the same space.

    Obsess over your storage

    Think about how you are going to use your cabinets so you can choose the right type of hardware. Look into different door hinges and drawer hardware. Custom doesn’t have to be pricey, either. Design your own modular system with crates of different sizes to bring an industrial touch to your home.

    Living in a small space doesn’t have to feel cramped and inconvenient. A thoughtful approach to simplifying your lifestyle can make a big difference. But still, keep a watchful eye on your stuff—it can pile up without your noticing. Seriously, how does it do that?

  • Not Happy With the Listing Price? Here’s What to Do

    Arguments, disagreements, even confrontation? When a couple is selling a home, it is possible that they may face all three. However, we’re not talking about the usual stressful situations that can occur between partners when it comes to the home sale process.

    As if selling your home wasn’t cause enough for a little uneasiness, what if you fully disagree with some advice that you get from your real estate agent? In fact, what if you think your home should be listed for a higher price than your agent recommends? Before your frustration level bubbles over and you decide to abandon your entire home sale altogether, relax… you’ve dealt with a little disagreement before, right?

    Here are three handy ways to approach a difference in opinion with your real estate agent when it comes to your home’s listing price:

    Keep Perspective – As the saying goes, “you’ve got to give credit where credit is due.” So, first and foremost, remember that your real estate agent has training and experience to back up their recommendation. Also keep in mind that they’ve done a comparative market analysis of similar area homes that are currently listed or have recently sold. They did not simply pull their recommendation out of thin air!
    If you’ve scoured the web and a site like Zillow suggests that your home is worth more than your real estate agent recommends, it is important to note that a Zillow estimate is merely a starting point that is calculated from public data and user-submitted information, as stated on the site. Your real estate agent is able to assess your home’s interior and current market conditions in your area before recommending a listing price.

    Demand More Proof – Now, you know that your real estate agent puts in some serious work before recommending your home’s listing price. But, if you’re not satisfied with their recommendation, ask for a further explanation! We’ve talked about a comparative market analysis of similar area homes; ask your agent to show you information about the homes they compared to yours. Get a greater understanding of the homes that are on the market or those that have recently sold.

    Communicate! – As with any disagreement, keeping the lines of communication open is vital. You trust your real estate agent and have reviewed your comparative market analysis, but you still think your home should be listed at more than what your real estate agent recommends? Tell them!
    Your agent works for you, which means they should work with you! But, don’t expect them to know you’re unhappy with their recommendation simply by casting sideways glances and giving the silent treatment! Voice your concerns and talk through your listing price until you reach a point where you’re satisfied.

    The home sale process can be stressful enough. There is no need to add in extra frustration by disagreeing with your real estate agent over your home’s listing price.

  • What’s the difference between Pending or Contingent?

    The status of a listing conveys information about the availability of a property. The listing agent is responsible for entering and maintaining the appropriate status into their Multiple Listing Service (MLS) Types of status can vary depending on the MLS, but in general there are five types:

    1. Active – The property is available for sale and the seller is accepting offers. Be careful though, this status does not mean that other offers haven’t been presented.
    2. Contingent – The seller has accepted an offer but the buyer may back out without penalty if certain conditions are not met within certain time periods. For instance, a financing contingency will allow the buyer to rescind and receive their deposit back if they are unable to obtain financing in accordance with the agreed upon terms of the contract. Other typical contingencies include:
      • Inspection or Due Diligence: The property doesn’t pass inspection or the cost of repairs exceed the amount the seller agreed to
      • Sale of Buyer’s Property: If the buyer must sell another property in order to be able to buy this one.
      • Appraisal: The appraised value does not meet the contract price.
    3. Pending – The seller has accepted an offer and all contingencies have been satisfied.
    4. Sold – The property has closed and is no longer available.
    5. Expired – The agreement between the seller and the listing brokerage has expired and the property is no longer listed for sale.

    Depending on the MLS, a status of Contingent, Pending or Expired may not be made public.  Other sub-status can be things like:

    • Contingent – continue to show (CCS): the seller wants to pivot to a backup offer if the buyer can’t perform.
    • Contingent – no show: the seller believes the buyer will have no problem removing the contingency.
    • Contingent – with kick out: the buyer has a limited time to remove the contingency or risk the contract being voided.
    • Contingent – probate: a deceased homeowner’s assets are going through the probate process, so the home may not be available for purchase for some time.

    When a listing is pending, the contract is closer to closing, but there are exceptions:

    • Pending- taking backups: the seller is accepting backup offers in case the buyer can’t perform.
    • Pending- short sale: the mortgage holder has been asked to take less money than the seller owes on their mortgage.

    Contact one of our knowledgeable agents and let us work for you!