Everyone loves presents, though it’s rare to get a really great gift from someone you probably don’t know. In my mind, that’s what happens in a real estate deal when the parties follow the entrenched custom of including a mortgage contingency into the agreement. The seller is giving the buyer something more valuable and meaningful than a box of Godiva chocolates, an Apple watch, or even a new stainless steel Keurig coffee maker with a timer.
Essentially the seller, without much or any background information, is assuming the risk; if the deal fails because the buyer is ultimately rejected for a loan, the buyer gets all their earnest money back and the seller has to put the property back on the market (which is not fun). Although sellers can minimize that risk by asking for a pre-approval letter from the buyer’s lender, that’s still no guarantee. When I represent sellers, I always recommend they wait to pack up the home (and remove staging, if any), and firm up moving plans until the mortgage contingency is either satisfied or waived.
When I represent buyers, I often urge them to consider presenting an offer without a mortgage contingency even if they ultimately do get one because mortgage contingencies add uncertainty to a deal. In that event, the buyer has more negotiating power on the other terms (price, closing, earnest money) because the seller can count on you closing. The seller only cares that you come to the closing table with money: you can get a mortgage, borrow on margin, pay cash, rob a bank, really anything. Just get the money to close.
Certainly, if we present an offer without a mortgage contingency, you have to have confidence in your finances and your ability to get the funds to close. This is rarely recommended for a first-time homebuyer, especially if you don’t have a really great trust fund. But the higher the price-point of the property, the greater the expectation is that the offer will not have a mortgage contingency. If you are buying a $10 million penthouse in the Gold Coast with a 90% mortgage contingency, the seller probably won’t take you seriously.
So with the holidays just around the corner, talk to me about whether a mortgage contingency should be on your gift list.
|
Open House Chicago returns!
|
One of our favorite events is back! Every October, the Chicago Architecture Center hosts Open House Chicago—a free public festival that offers access to architecturally, historically and culturally significant sites across the city.
OHC remains one of the largest events of its kind in the world, and includes includes a broad array of talks and virtual programs, as well as tips and itineraries for exploring shopping, dining, and other attractions in each neighborhood. This year's in-person site visits occur this weekend, with extended programming and city-wide trails available for the entire month of October. H
ighlights include more than 30 Chicago neighborhoods, North Shore suburbs and Oak Park, with 30 trails for self-guided, outdoor exploration on themes including community engagement, green spaces, historic preservation, residential architecture and more.
|
Visit 11 haunted spots - if you dare!
|
When it comes to ghost stories, Chicago is no Second City. DNA Chicago and Bock Club Chicago have put together a list of 11 spooky spots you can visit - along with where you can eat and drink after visiting them.
You can head to Uptown if you want to catch sight of Al Capone’s ghost, or drive down to Hyde Park if you want to meet up with the spirits of Confederate soldiers held at Camp Douglas.
|
4 Bed | 4.1 Bath Lincoln Park
|
4 Bed | 3.1 Bath Andersonville
|
950 N. Michigan Ave, #2203
3 Bed | 3.1 Bath Michigan Avenue
|
1327 W. Washington Blvd, #4B
|
|
3 Bed | 2 Bath East Lakeview
|
|
4 Bed | 3.1 Bath Lincoln Park
Offered at $2,350,000
Open House Sunday, 12:00 - 2:00
|
Offered at $615,000
Open House Sunday, 1:00 - 2:30
|
|
5 Bed | 5.1 Bath Lincoln Park
Fabulous newer custom home.
|
|
Modern. Vintage. Architectural. Cool.
|
And everything in between.
|
|
© Compass 2021 ¦ All Rights Reserved by Compass ¦ Made in NYC
Compass Real Estate is a Licensed Real Estate Broker with a principal office in New York, NY and abides by all applicable equal housing opportunity laws. All material presented herein is intended for informational purposes only, is compiled from sources deemed reliable but is subject to errors, omissions, and changes without notice. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
marketingcenter-midwest-chicago |
|
|
