The Buyer Gets $70,000. But What Does Chicago's HomeGrown Grant Mean for Sellers?

Introduction

When sellers hear that a buyer is receiving up to $70,000 from the City of Chicago, the first reaction is usually positive.

More money sounds like a stronger buyer.

But before accepting an offer involving HomeGrown funds, sellers should understand how the program may affect the transaction timeline.

The Buyer May Still Be Waiting for Grant Approval

Unlike many traditional financing situations, buyers may already be under contract before the grant review process is fully completed.

That means:

• The mortgage may be approved
• The contract may be signed
• Attorney review may be completed

While grant review is still ongoing.

For sellers, this creates additional questions.

Questions Every Seller Should Ask

How much of the buyer's cash-to-close depends on the grant?

Does the buyer have a backup funding source?

Has the grant application been submitted?

Has a Conditional Commitment Letter been issued?

What happens if the grant is delayed?

What happens if the grant is denied?

Why Sellers Need a Strong Agent

Many sellers never hear these questions discussed.

That's because most conversations focus on the grant amount—not the transaction process.

A strong listing agent should be communicating with:

• The buyer's lender
• The buyer's Realtor
• The attorney
• The title company

To understand where the transaction stands.

Seller Protection Checklist

□ Ask if HomeGrown funds are involved

□ Review financing contingency carefully

□ Request lender updates

□ Ask whether buyer has backup funds

□ Review timelines with attorney

□ Discuss potential delays

□ Request updated status reports

□ Review estimated net proceeds

□ Address municipal issues quickly

□ Stay informed throughout the process

Don't Panic

Most transactions close successfully.

The goal isn't to avoid HomeGrown buyers.

The goal is to understand the process and manage expectations.

Knowledge creates smoother closings.

Thinking About Selling?

If you're selling a home and receive an offer involving HomeGrown funds, let's review the contract together.

Schedule a Seller Strategy Consultation with Carter Realty Group and we'll help you understand the risks, timelines, contingencies, and opportunities before making a decision.