Home Buying in Sarasota>Question Details

Garrett, Home Buyer in Center Barnstead, NH

What does it mean if a property just went under contract?

Asked by Garrett, Center Barnstead, NH Mon May 11, 2009

I've been watching a short sale property, when I inquired about it I was told it just went under contract. What exactly does that mean?

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Answers

5
Garret
i deal alot in Short sales. The term just went under contract means an offer has been signed off by both buyer and seller and now the bank has the offer that was agreed to. however, just because an offer was presented to the bank does not mean the bank will except that offer. In a short sale situation we bring offers to the bank, the bank then may take 1 month to 7 months to answer back. and when they do answer back bank may not take the offer we submitted they may want more money that the home was listed for
Garret, short sales are a long process and complicated. do you have an agent you are working with to talk to about this. each bank is different and each short sale could be different. if you are looking for this type of home. GET AN AGENT for it is important you know everything from the start.
If you do not have an agent then call me
Have a great morning
David Leventhal
The Leventhal Team
0 votes Thank Flag Link Tue May 12, 2009
While Terry and Jim are both correct in their comments, I'd like to point out that if you're second fiddle in a deal - regardless of terms - you're still second fiddle. Short sales are hard enough as it is, and to come in as a backup to a short sale contract is, to me, not the best use of your time. There are plenty of deals on the market at any given point and a decent agent will spend the time with you to find the RIGHT home where you're in FIRST position.

To clarify, any buyer in this market walks in with the upper hand. I ALWAYS include language in my buyer's contracts that gives me first shot at any deal regardless of the backups... while I can't guarantee that another offer won't come in after mine, I can all but guarantee that the buyer who did all the work will get the first shot to know and meet price and terms, thereby eliminating the competing buyer.

Unless your house is so unique that there isn't possibly another house like it, I would counsel patience ... another will come on the market that fits (and exceeds) your needs. As always in real estate, it's just a matter of having the right agent at the right time.

Alex Krumm
Re/Max Alliance Group
941-234-3597 Direct
941-954-5454 Office
alex.krumm@verizon.net
http://www.sarasotapropertygroup.com
0 votes Thank Flag Link Mon May 11, 2009
Hello Garrett: No sense repeating a good answer like Terri's. She had an excellent answer. Many Short-Sales and Foreclosure properties are Pending or Under Contract, waiting for Lender approvals. The Buyers and Investors realize the prices, we have now, have never been better. To quote one of our area Brokers.... "It's the best time to Buy in a Generation." Our Short-Sales are still time consuming and taking 60 to 90 days to answer, then scheduling inspections, title and closings. Good Financing and/or CASH are King. Pre-Approval letters from your Lender or Proof of Funds are required with an offer. You must be ready to "pull the trigger" when the Lender makes the approval. Most of all, you have to have the patience to WAIT for Lender approval. We are seeing more and more BUYERS from Connecticut, the past 90-days. Very COLD Winter!!
Jim Soda 941-809-7759
Jim@JimSoda.com
My BLOG: http://sodasells.wordpress.com/
Prudential Palms Realty Web site: http://www.JimSoda.com
Sarasota-Lakewood Ranch-Siesta Key-Longboat Key
Immobel International Property Realtors
Web Reference: http://www.jimsoda.com
0 votes Thank Flag Link Mon May 11, 2009
Hi Garrett,

This means that the buyer and seller have come to terms. The offer is then submitted to the lender for approval. If you want to write a back up offer, then you should give your highest and best offer and have your agent present it to the seller. If accepted, your offer will then be sent to the lender and the lender will decide which offer to accept. Pending does not mean the lender has accepted the offer. If you submit an offer that is higher then the offer currently being reviewed, you may just have your offer accepted by the lender and you could be the one who closes on the property. All offers in front of a lender are judged by it's favorability. Amount, Is it cash, how much is down, and or etc. make a good offer and you may have a great chance of getting this house.

My best,
Terri

Teresa M. Fellows
Broker/Associate
Waterside Realty LLC
941-350-4297
tmf4257@mac.com
http://www.floridawestproperties.com
0 votes Thank Flag Link Mon May 11, 2009
It means that the buyer and seller have agreed to terms. Being a short sale it could be under contract but still not be approved by the third party lender(s). In a case like that the listing agent will usually encourage the submission of backup offers. If you were told that the sale is pending, that should mean that the lender has approved the offer and there are no longer any contingencies on the offer.
0 votes Thank Flag Link Mon May 11, 2009
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