In the multiple listing services in northern California, once a seller has accepted a short sale offer, that listing can be placed into a status called 'active short contingent.' It's supposed to let other agents know that the home is no longer for sale because an offer has been accepted. It does not mean, however, that the bank has issued short sale approval. The accepted short sale offer is simply contingent on the bank's approval.
- Real Estate Status Active Option
- What Does Active Contingent Mean Real Estate
- Contingent Vs Pending In Real Estate
- How Does Contingent Real Estate Offers Work
- What does Contingent short sale mean. If you see a house that you LOVE that is contingent short sale you should have your agent inquire about the status, the banks involved, how long they have been negotiating. Jon Gosche Real Estate, LLC is Boise's most innovative real estate team.
- What does active short sale contingent mean? Metrolist is the predominat MLS service in the Central Valley which includes Tracy and Mountain House. Metrolist several years ago decided to put a 'active short sale contingent' as a status option in the Multiple Listing Service.
Because this status confuses MLS users, some listing database services changed their procedures to allow another status for these types of short sales; they are now better defined as 'pending short lender approval.' The remaining homes in the MLS flagged as 'active short contingent' are those where the seller is actively looking for backup offers.
How Active Short Sale Contingents Work
Sometimes, depending on the real estate market, an agent might list a short sale property below market value, much to the chagrin of some buyer agents. These agents are often vexed because they have a hard time figuring out how much the home is actually worth and don't know how much their buyers may need to offer. But this practice often brings multiple offers, which tend to result in a much higher sales price for the seller. Here is how it works:
CMA & Basic Real Estate Listing Terminology. Active Contingent Short Sale. Pending, and finally to Sold. If an accepted purchase contract is a cash purchase with no or minor contingencies, the status moves from Active directly to Pending. Original List Price. A contingent real estate sales offer is a written purchase contract to buy a house that includes contingencies by which the buyer can nullify the sale. Contingencies are fairly common in real estate purchase contracts to protect the buyer and seller from an undesirable financial burden. If the house you're interested in has the real estate listing status 'active/pending short sale,' what does that mean? Unlike 'active,' 'pending,' or 'sold,' this status is a bit of a head-scratcher.
- Buyers submit offers that generally contain a three-day window, during which time, the seller can pick and choose among the offers.
- The seller selects the best offer, which isn't necessarily the highest offer and signs it.
- Because buyers sometimes don't want to wait for short sale approval, the seller may accept one or more back-up offers as insurance.
- The accepted offer is submitted to the bank for approval.
- At the seller's discretion, and providing the contract does not contain verbiage that prohibits it, the seller may direct the agent to send back-up offers to the bank as well.
This means that by the time you spot an active short sale contingent listing online, the process is most likely well underway. But there is always a chance the accepted contract could fall apart.
Making Offers on Active Short Sale Contingent Listings
You have nothing to lose by submitting an offer on an active short sale contingent listing. That's because some buyers write many offers on other homes. When another offer gets accepted from these types of buyers, the buyers then withdraw their outstanding contingent offers.
If the buyer walks away, the seller's agent will then call the buyer's agent whose buyer is in a back-up position. But it doesn't mean a buyer in this position will be any closer to short sale approval. Some banks make sellers start over when a new buyer enters the process.
If the offer you submitted is behind the back-up offers, you might not stand much of a chance to buy that short sale. Your second best strategy is to be in the first back-up position. Your optimum position and, of course, best strategic move is to be the accepted offer.
Unless our buyer-clients have nothing better to do than to wait around to see if an active short contingent offer falls apart, we advise them to seek out only active short sales and to ignore the active short contingents. We'd rather they wait to see if the home comes back on the market as an approved short sale and snatch it then. Still, it's worth it to call the listing agent to check on the status.
At the time of writing, Elizabeth Weintraub, CalBRE #00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Call it what you will—jargon, shorthand, lingo—but every industry including the real estate world, has its own language, a collection of terms that are essential to understand if you hope to play ball. And the real estate business is no different. In fact, there are probably more terms in the housing biz than just about anything short of neurosurgery. That's why when you read a real estate listing, you may end up scratching your head over a whole bunch of puzzling terms. Allow us to clear things up, by explaining what these things really mean in plain old English.
Common real estate listing terms:
Active
This means that a property is currently on the market and available for sale. It may have received offers, but none have yet been accepted, which means that the opportunity is wide open for you to make a proposal.
Real Estate Status Active Option
Closed (CL)
The property is sold and no longer available.
Related Articles
Active with contract (AWC)
This means that even though there’s an accepted offer on the home, the seller is looking for backup offers in case the primary buyer falls through. While any seller can entertain backup offers as a precautionary measure as long as this is made clear in the contract, this term most often crops up with short sales, since they can often fall through, and it can be helpful if a second buyer is waiting in the wings.
Under contract (UC)
What Does Active Contingent Mean Real Estate
The seller has an agreed-upon contract with the potential buyer. That doesn't mean that it's a done deal by any means, however (more on that next).
Contingent
A contingent status means that the seller has accepted an offer and the home is under contract.
But the sale is subject to, or conditioned upon, certain criteria being met by the buyer and/or seller before the deal can close. Examples of contingencies are home inspections, attorney review, the buyer's financing, appraisal, and title search, among other reasons.
These contingencies fall away as tasks are completed, says Melanie Atkinson, a Realtor® with Coldwell Banker Residential Real Estate in Tampa, FL. Sometimes a property will continue to be shown when it is contingent, and the seller may entertain a backup offer. So if the home in question is your dream home, it may be worth offering up a deal that the seller can't refuse.
Deal pending (DP)
This means the seller has an accepted offer and an executed contract, and all the contingencies have been met, so the home is pending sale. This is the escrow period, when both buyer and seller are working toward a closing. The status will show as pending until the closing. Even though a sale is highly likely, some pending properties may still accept backups. If your offer is accepted as a backup, you’re in line to go under contract if the first sale falls through.
Pending, showing for backup
This means the property's owners are actively taking backup offers in case the first one falls through.
Pending, subject to lender approval
The seller has an accepted offer but is waiting to see if the buyer's bank will agree to it, says Realtor Dawn Rivera with Realty World-Viking Realty in Fremont, CA. Download game mobil balap ringan untuk laptop. If not, it could end up back on the market, so go ahead and inquire if you're interested.
Back on market (BOM)
A property that has come back on the market after a pending sale. This means that the home fell out of escrow, perhaps due to contract issues, says Tania Matthews, an agent with Keller Williams Classic III Realty in Central Florida.
Expired
The property listing with the agent has expired and is no longer active, usually because it didn’t sell, says Matthews. That could mean the seller is still open to accepting an offer, so it's worth touching base if your curiosity is piqued.
Temporarily off the market (TOM)
The owner has removed the property from the listings for an undetermined period, usually because work is being done on the house or because the home cannot be shown. It should return to active soon enough, so it's certainly worth piping up if you're smitten.
Withdrawn
Contingent Vs Pending In Real Estate
A property was withdrawn from the realty market. This might be for a variety of reasons: The sellers may have decided they want to stay put, or they may just not have received any offers they liked. So if you adore what you see in the listing, it certainly can't hurt to inquire.