Title: Understanding
MLS Listing Status: A Guide to
Active Under Contract and MoreWhen it comes to buying or selling a home, navigating the real estate market can be overwhelming, especially with the jargon and terminology used. One common aspect of the process is understanding the various MLS listing statuses.
In this article, we will delve into one of the key statuses, “
Active Under Contract,” and explore other commonly used statuses. By the end, you’ll have a clearer understanding of what each status means and how it impacts your real estate journey.
MLS Listing Status
MLS listing statuses are valuable indicators for buyers, sellers, and real estate agents. They provide crucial information about a property’s availability and its progress in the sales process.
Let’s explore the different listing statuses you may encounter:
Active
When a property is listed as “
Active,” it means it is currently available for sale. Buyers can make offers, and sellers can consider them.
This status typically features properties that have not received any accepted offers yet.
Active Under Contract
“
Active Under Contract” signifies that a seller has accepted an offer, but the transaction is not yet complete. This status means the property is no longer available for showings, but there are still contingencies to be met before the sale can fully proceed.
Pending
Once all contingencies have been met, a listing moves into the “
Pending” status. At this point, the sale is considered to be in the final stages.
The property is no longer available for showings, and the escrow period begins, where legal and financial details are finalized.
Sold
When a property has successfully completed the transaction, it is marked as “
Sold” in the MLS listing. This signifies that the sale has closed, and ownership of the property has transferred to the buyer.
Active Under Contract Definition
Now that we have a better understanding of the MLS listing statuses, let’s focus on the intricacies of the “
Active Under Contract” status. This status is often misunderstood, so it is crucial to comprehend its meaning fully.
Active Under Contract Meaning
“
Active Under Contract” describes a real estate transaction that is still in progress. It is an intermediary phase between the acceptance of an offer by the seller and the finalization of the sale.
It is worth noting that during this period, the property remains visible to potential buyers, but further offers are generally not considered, unless the current agreement falls through.
Active Under Contract Definition
In the MLS, the term “
Active Under Contract” refers to a listing’s status when an offer has been accepted by the seller, but certain contingencies must be resolved before the sale is completed. These contingencies may include financing, inspections, appraisals, or repair negotiations.
The property is not yet off the market but is considered to have limited availability.
Active Under Contract Contingencies
Contingencies play a significant role during the active under contract phase. They are conditions that must be met satisfactorily for the transaction to progress.
Some common contingencies include satisfactory inspections, receiving financing approval, or the successful resolution of repair requests. If these contingencies are not met within the agreed-upon timelines, the contract may be terminated by either party.
By understanding the meaning and implications of “
Active Under Contract,” you can better comprehend the status of a listing and make informed decisions throughout your real estate journey. In Conclusion:
Navigating the real estate market can be complex, but understanding MLS listing statuses is crucial for both buyers and sellers.
This article has provided an overview of various statuses, focusing on “
Active Under Contract” specifically. Armed with this knowledge, you can confidently approach the real estate process, ensuring that you are well-informed and ready to make informed decisions.
Active Under Contract vs
Pending
Difference between
Active Under Contract vs
Pending
Understanding the difference between “
Active Under Contract” and “
Pending” is crucial in deciphering the status of a property during the real estate process. Both statuses signify that an offer has been accepted, but there are nuances that set them apart.
When a property is listed as “
Active Under Contract,” it means that the seller has accepted an offer, but there are still contingencies to be met before the sale can be finalized. These contingencies may include inspections, appraisals, financing, or repair negotiations.
While the property is under contract, it remains on the market and visible to potential buyers. However, further offers are often not considered unless the current agreement falls through.
On the other hand, “
Pending” indicates that all contingencies have been satisfied, and the sale is in the final stages. The property is no longer actively marketed or available for showings.
At this point, the escrow period begins, where the necessary legal and financial details are finalized. Typically, the status is changed to “
Pending” once all contingencies have been met, and the transaction is progressing towards closing.
It’s important to note that the terminology used to describe these statuses may vary depending on the local MLS. In some areas, “
Active Under Contract” may be labeled as “Contingent” or “Under Contract.” Likewise, “
Pending” may be referred to as “Sale
Pending” or “Under Agreement.”
Making an Offer on an
Active Under Contract Home
Seeing a property listed as “
Active Under Contract” may give the impression that there is no room for further offers. However, it is possible to make an offer on an active under contract home, especially when a backup offer is permitted.
A backup offer is an offer made on a property that is under contract. If the initial contract falls through, the backup offer becomes the primary contract, ensuring that the property does not go back on the market.
This option benefits both buyers and sellers, as sellers have a backup plan in case the initial agreement fails, while buyers have a chance to secure a property they are interested in. When considering making a backup offer on an active under contract home, it is essential to work closely with your real estate agent.
They will guide you through the process, help you assess the likelihood of the primary contract falling through, and determine the best offer price and terms. Keep in mind that backup offers are generally presented to the seller with notification that it will only become binding if the initial contract is terminated.
MLS Listing Terminology
Active Under Contract Terminology
While “
Active Under Contract” is the commonly used term to describe a property in this status, there are variations in terminology that you may come across in different MLS regions. One such term is “Escrow.” In some areas, instead of “
Active Under Contract,” the status may be referred to as “Escrow.” This term emphasizes the stage in the sales process where legal and financial details are being finalized.
Other Listing Terminology
Aside from “
Active Under Contract” and “
Pending,” there are other terms used in MLS listings that may cause confusion. Here are a few examples:
1.
Active Contingent: This status indicates that a property is under contract, but the seller is still actively seeking backup offers. If a more favorable offer is received, the primary contract may be terminated.
2. Sale
Pending: Similar to the “
Pending” status, “Sale
Pending” implies that all contingencies have been met, and the sale is in its final stages.
However, the terminology used may vary depending on the local MLS. 3.
Active With Contract: This status indicates that the property is under contract, but the seller is open to accepting additional backup offers. 4.
Pending Taking Backups: This status signifies that the property is under contract, but the seller is still considering backups in case the primary contract is terminated. 5.
Contingent Bumpable: This status indicates that the primary contract includes a “bump clause,” meaning that the seller can accept a better offer and “bump” the primary buyer out of the contract. 6.
Active Kick-Out: In this status, the primary contract includes a “kick-out clause” that allows the seller to accept a better offer if certain conditions are met. 7.
Active No Show: This status indicates that the property is under contract, and the seller has requested no further showings. Understanding these different listing terminologies will help you interpret MLS listings accurately and make informed decisions during your real estate journey.
In conclusion, comprehending the differences between “
Active Under Contract” and “
Pending” is essential for understanding the status of a property during the real estate process. Additionally, familiarizing yourself with various MLS listing terminologies will enable you to navigate the market with confidence.
By knowing the nuances and implications of each status, you can make informed decisions and ensure a smoother real estate experience. Understanding MLS listing statuses is crucial for buyers, sellers, and real estate agents alike.
In this article, we explored the main topics of MLS listing statuses, specifically focusing on “
Active Under Contract.” We discussed the differences between “
Active Under Contract” and “
Pending,” highlighting the significance of contingencies and the escrow period. We also delved into making backup offers on active under contract homes.
Additionally, we covered various MLS listing terminologies, from “
Active Contingent” to “
Pending Taking Backups,” clarifying their meanings. By grasping these concepts and terminologies, you can navigate the real estate market more effectively, make informed decisions, and ensure a smoother transaction process.
Remember, understanding MLS listing statuses is the key to unlocking a successful real estate journey.