Under Contract – What this means in real estate

    real estate under contract meaningWhen searching for homes within our Top SCVnest System – which BTW – is connected directly to the Multiple Listing Service, you will see three differing statuses within my system and others.

    The “others” which I speak of are those you need to be weary of. They are websites which will sell, trade, and give away your personal and private information to those “hungry real estate agents” which are willing to pay for it. see: Real Estate syndication websites

    Here are the statuses you will find when searching for homes online.

    Under Contract – status in real estate

    This status means the property in question has an accepted offer by a real estate home buyer and the specific real estate seller.

    The reason you are still seeing the “under contract” listing on the home search websites is because it may be in backup status (see below).

    This status in real estate also means that the home seller may or may not wish to entertain other offers for backup purposes. For backup purposes means if the accepted offer, creating the “under contract” condition, falls apart or cancels – there will be other offers to entertain and potentially accept.

    In some cases – the “under contract” property will make it all the way to close, record and have a new owner.

    Depending on the┬ácondition of the real estate market – the statistics change – more or less homes will make it through escrow with the first offer received – for an example.

    BackUp – backup status

    The backup status in real estate is supposed to mean that the home seller still wants their home shown. The home seller with a home in backup status wants to have additional offers written and stored just in case the original offer falls apart.

    Backup status also means that the home is “under contract”.

    The backup status may show as being “active”(see below) on some of the real estate syndication websites on purpose to get you to inquire and have your personal information sold!

    Pending – Pending status

    The pending status in real estate means that the home is under contract and that the seller does not want to entertain additional offers.

    In this particular case – pending status should mean the offer which was received and accepted by the home seller is very strong.

    An offer which will cause a Top Realtor to place the home into the pending status typically has better than average financing, more money down or constricted time frames and more for the home buyer to lose if they do cancel escrow, in some cases.

    Active – Active Status in real estate

    The active status in real estate means the home is for sale. There is not an accepted offer. There may have been offers received, but the seller has not “signed off” on any of the offers.

    FYI – if there is an accepted offer – the seller’s representative has 48 hours in which to change the status in the multiple listing service to backup or pending – (under contract). If they do not they can be fined from the board of Realtors.

    I’m Connor T. MacIvor – call me when you are ready for my assistance with real estate.

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