Have you ever come across the term "Active Under Contract" when searching for real estate properties? If you're wondering what it means, you've come to the right place. In this article, we'll explain everything you need to know about this property status.
MLS Listing Statuses Displayed
On RubyHome, you may come across three types of listing statuses: Active, Pending, and Under Contract. Each status represents a different stage in the home buying process.
Active
When a real estate broker or agent takes a listing and posts it to a Multiple Listing Service (MLS), the property becomes officially available for sale. At this stage, the status is "Active." Other agents can view the property on their MLS and potential buyers can see it on agent-owned and broker-owned websites. It's important to note that just a few years ago, listings were not immediately distributed to big real estate websites like Zillow or Trulia, resulting in fewer listings and less accurate status information.
Active Under Contract
When a buyer makes an offer and the seller accepts it, the listing status changes to "Active Under Contract." This means that the property is no longer available for other buyers to make offers on, but the deal has not yet closed. The sale is subject to certain contingencies, such as a home inspection, appraisal, or financing, which need to be fulfilled before the deal can be finalized. During this stage, the property remains listed and available to view online.
Pending
A "Pending" status indicates that all contingencies have been met, and the home is in the escrow period where final paperwork, signatures, and disbursement of funds take place. Pending deals have a very high likelihood of closing, and they are unlikely to be available for purchase.
Sold
Once a property is sold or closed, it is no longer on the market. Consumers interested in sold listings usually use this information for comparative purposes when planning to sell their own homes.
FAQs about Real Estate Listing Statuses
Here are some frequently asked questions regarding real estate listing statuses:
Q: Why not remove the property from the MLS after the first offer?
A: Deals can sometimes fall through, so it's in the seller's best interest to continue marketing the property actively. Attracting other potential buyers, just in case the current contract doesn't come through, is a prudent course of action.
Q: Can I still view homes in person if they are listed as Active Under Contract?
A: It depends. Some sellers may not allow tours while their home is Active Under Contract, as they may be busy preparing for their move. However, if there is uncertainty about the current contract's probability of closing, sellers may be more open to showing the property to other prospective buyers.
Q: How long can a house remain under contract?
A: The closing stage of the home buying process typically takes 30 to 45 days, although it can be longer during peak periods. This time is necessary to finalize financing and complete contingencies such as appraisals and inspections.
Q: If a house is under contract, can I still make an offer?
A: Yes, you can still make an offer. However, the seller cannot accept your offer unless there is a breach of the current contract.
Q: What does "In Escrow" mean?
A: The terminology used on yard signs and websites can vary by state, region, and local real estate market. "In Escrow" is a synonym for "Active Under Contract" and is commonly used in multiple states.
By understanding the different real estate listing statuses, you can navigate the home buying process with more confidence. If you're interested in a property that is Active Under Contract, it's always a good idea to stay informed and be patient. Deals can sometimes fall through, and you may have the opportunity to make an offer if that happens. Happy house hunting!