Different Status Types: Active, Active Under Contract, Pending, etc.

I want to help shed some light on the different types of property statuses, as this is a great question I receive.  The explanation below helps to explain what the rules of engagement are for viewing and purchasing real estate in the Louisville market.

Active:  An active status means that the property is available for sale.  There are no accepted contracts on the property.  Appointments can be set to view the property and make offers accordingly.  There may be time restrictions on viewing; however, it is wide open for purchase.

Active Under Contract:  This status is a new one in the Louisville market.  It is an optional status that some agents use.  It means that there is an accepted contract on the property; however, there are contingencies still in place.  This is most often a contingency on inspection, where the buyers are in a position to back out of the contract because of issues from the inspection.  The property can still be seen.  A back-up offer can be made in case the currently accepted contract falls through.

Active with 24/48 hour Right of Refusal:  This status will not show from an on-line search; however, I can see it as an agent.  What it means is that a property has an accepted contract; however, the closing of the deal is contingent upon the sale of the buyer's current property.  If a new buyer submits an offer, the current buyer with the accepted contract has either 24 or 48 hours (depending on what was agreed upon) to perform.  Performing means that the current buyer must find a way to buy the property without needing to sell the buyer's current property.  If that buyer cannot perform, it nullifies their current contract.

Pending:  This status means that the property has an accepted contract on it, and there are no more showings taking place.  This doesn't mean the property could not come back on market.  It means, though, that no further activity is occurring.

Closed:  A Closed status means that the property has been sold.  It is no longer on the market.

Temporarily Off Market:  This status means that the house has been taken off the market for typically a short period of time.  This could be the result of various reasons (e.g. the owner needs to finish some work to the property, a family situation, etc.).  No showings will take place during this time, but the property should come back on the market with the same real estate agent.

Expired:  This means that the listing contract has run out.  For example, if an agent had a listing contract with a seller that lasted six months an
d the house hasn't sold, the listing contract would expire after the six months.  The property would not be on the market for sale currently.

Cancelled:  This status means that the house was taken completely off the market for some reason.  The property must be completely re-listed in order to be for sale again.


Each situation is a little different.  I am happy to speak in detail regarding any status questions you may have.

Please contact me with any questions regarding real estate you may have.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Preparing Your Property for Home Inspection

A question that comes up often is:  what do I need to do to my house to be ready for the inspection?

After the buyer's offer has been accepted, a contract is now in place.  Most contracts have a provision in them for home inspections.  The time allowed for the buyer's inspection is typically between 10 and 14 days.  During this period, a buyer will hire an inspection company to come out to the property to review it for any issues.  The inspector will provide an inspection report to the buyer, and the buyer's agent will work with the buyer to write up an inspection request and submit to you as the seller.

Here are some things to keep in mind for inspections:

First, you will want to vacate the property during the inspection.  You are not supposed to be present.

For the inspection, you will want to make sure that the water and electricity are on.  You do not want to shut off or transfer any services until the closing date.

If you haven't already, clear a path to heating and air conditioning units and electrical panel.

Make sure that access is available to the attic and basement (or crawl space), as applicable.

Be mentally prepared.  The inspector's job is to find issues with your property.  When you receive the report, know that there will be items on it.  I've never seen or heard of a flawless inspection.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Getting Started as a Home Buyer

The home buying experience is an exciting one, but there are a lot of logistics that have to be worked through before you purchase your new home.

The first step is getting a pre-approval letter.  In this part of the process, you talk to a loan officer who can help you see what kind of mortgage you can afford and gives you a payment breakdown.  If you have any questions in this area, I can help point you in the right direction.

Once you have the pre-approval letter, I will discuss your current wants and needs in order to set up an automated search through our local Multiple Listing Service (MLS) system.  This is the best, most reliable source for searches, as other real estate search sites feed from the MLS database.  This means that the information gets to the MLS first, and with an automated search, you will see properties as soon as they become available (as soon as the agent posts the listing to the MLS).

The next step is to see properties in person that you have chosen from your search.  During this time, we will work through what you do and do not like about the properties you view.  The process of narrowing down which property works best can actually be a lot of fun.

If needed, adjustments can be made to the search criteria.  If not, we will continue to view property until you make an offer on the place that best fits your needs and wants.

Once your offer is accepted, it will move from the contract-to-close phase (the details of which are a topic for another time).  For getting started, the steps are getting a pre-approval letter, viewing properties, narrowing down the search to what best fits your needs/wants, and getting a contract.

As a side note, a common misunderstanding is that there is a fee for a buyer's agent's service.  There is not.  A buyer does not pay his or her real estate agent any commission.  All of the commissions come from the seller.  At Gatewood Properties, we do not charge an administrative fee for any paperwork completed, so you can be confident that you will not be paying any realty fees as a buyer.

If you have any additional questions related to real estate, please let me know.

Matt Gatewood

Realtor®

Keller Williams Louisville East

502-594-6582

www.gatewoodproperties.com

Louisville Cultural Pass

I recently took a trip to the Crescent Hill library (and a walk around the Reservoir) with my wife and kids. While there, we learned about this year's Cultural Pass.

If you didn't hear about its debut last year, the Cultural Pass is a way to keep kids (and adults, by proxy) engaged in learning opportunities throughout the summer.  The pass allows for free admittance to fun and educational sites (those things do not have to be mutually exclusive) at the following participants:

Children who get at least eight locations stamped on the card will be eligible for prizes (no, I'm not sure what...it is being kept an enigma...probably a Ferrari).  

There are some rules with the program, you must have an eligible Library Card (pay your $0.30 in late fees, you criminal).  There are some restrictions on the days/times, and only one adult entry is included for free with the pass.  

Enough talk.  Go get some culture.  

--Note:  You cannot print off this pass from the blog, it has to be picked up at either the Louisville Free Public Library or a Metro Parks Community Center.