When you're in the process of buying or selling a home, you might come across terms like "Active Under Contract" and "Pending" in the Multiple Listing Service (MLS). These statuses can be confusing, as they both suggest that a property is not available for sale, but they're not the same. Let's dive into the differences between these two real estate terms.
Understanding these statuses is crucial for buyers and sellers alike. It helps buyers know which properties are still available and which ones they should consider. For sellers, it's important to know what these statuses mean for their property's visibility and potential sale.
Active Under Contract: What Does It Mean?
An "Active Under Contract" status means that a property has an accepted offer from a buyer, but the deal has not yet closed. The seller has agreed to the buyer's terms, but there are still contingencies that need to be met before the sale is final. These contingencies can include home inspections, appraisal, and financing.
Properties with this status are still considered active listings because the deal is not yet closed. However, they are typically not shown to new buyers, as they are considered to be spoken for. This status can last from a few days to a few weeks, depending on how quickly the contingencies are met.
Why Are Active Under Contract Properties Still Listed?
Properties with an "Active Under Contract" status are still listed for a few reasons. Firstly, it gives the seller a chance to back out of the deal if the contingencies are not met. This could happen if the buyer's financing falls through, or if the home inspection reveals significant issues.
Secondly, it allows the seller to continue marketing the property in case the deal falls through. If the sale does not go through, the property will revert to an "Active" status, and it will be available for new offers.
Can You Make an Offer on an Active Under Contract Property?
In most cases, no. Once a property is under contract, it's typically not shown to new buyers. However, there are a few exceptions. If the seller has received multiple offers and is considering a backup offer, they might continue to market the property as "Active Under Contract". In this case, a new buyer could potentially make an offer that the seller would accept.
Additionally, if the deal falls through for some reason, the property will revert to an "Active" status and will be available for new offers.
Pending: What Does It Mean?
A "Pending" status means that a property has a signed purchase agreement, and all contingencies have been met. The deal is almost closed, and the property is no longer available for sale. The only thing left to do is the final closing process, which typically involves signing the final paperwork and transferring ownership.
Properties with a "Pending" status are not shown to new buyers. They are considered to be sold, and the seller will not entertain any new offers. Once the sale is final, the property will be removed from the MLS and will no longer be listed.
Why Are Pending Properties Not Available for Sale?
Pending properties are not available for sale because the deal is almost closed. The seller has agreed to the buyer's terms, and all contingencies have been met. There's no reason for the seller to entertain new offers at this point.
Moreover, showing the property to new buyers at this stage could potentially delay or even derail the closing process. It's in everyone's best interest to focus on getting the deal to the closing table as quickly and smoothly as possible.
Can You Make an Offer on a Pending Property?
No. Once a property is in "Pending" status, it's considered to be sold. The seller will not entertain any new offers, and the property will not be shown to new buyers. If you're interested in a property that's in "Pending" status, you'll have to wait for it to close and then look for new listings.
However, if you're a buyer who's already working with a real estate agent, they might be able to find out more about the property and the deal. In some cases, the seller might be willing to consider a backup offer in case the deal falls through. But this is not common, and it's not something you should count on.
Understanding the difference between "Active Under Contract" and "Pending" statuses is crucial for buyers and sellers alike. It helps buyers know which properties are still available and which ones they should consider. For sellers, it's important to know what these statuses mean for their property's visibility and potential sale. If you're in the market to buy or sell a home, it's a good idea to work with a real estate professional who can help you navigate these statuses and make informed decisions.