When searching for a property on the MLS, you may come across the term “active under contract.” This can be a confusing term, especially for first-time homebuyers or those who are new to the world of real estate. In this article, we will explain what “active under contract” means and how it may impact your home-buying decision.
To start, the MLS stands for the Multiple Listing Service. It is a database that real estate agents use to list and search for properties that are for sale. When a property is listed on the MLS, it can be seen by all real estate agents who are members of the MLS. This allows for greater exposure of the property and increases the chances of finding a buyer.
Now, let`s get back to “active under contract.” This term means that the seller has accepted an offer on the property, but the sale has not yet closed. The property is still technically on the market and available for backup offers, but the seller has already entered into a contract with a buyer.
This status is also known as “pending,” “contingent,” or “under contract,” depending on the local MLS. The wording may vary, but the idea is the same: the property is not available to be sold to another buyer unless the current contract falls through.
So, why do some sellers choose to list their property as “active under contract?” There are a few reasons. First, the seller may want to continue to market the property to attract backup offers in case the current contract falls through. Additionally, the seller may want to keep the property listed on the MLS to show that there is demand and interest in the property, which could potentially lead to a higher sale price.
As a potential homebuyer, it is important to understand what “active under contract” means. If you are interested in a property that is listed as active under contract, you can still make an offer on the property. However, you should be aware that your offer will only be considered if the current contract falls through. This means that you should continue to look at other properties and not become too invested in the one that is currently under contract.
In conclusion, “active under contract” means that a property has an accepted offer but has not yet closed. This status allows the seller to continue to market the property and potentially attract backup offers. As a homebuyer, it is important to understand what this term means and how it can impact your home-buying decision. Always consult with a real estate agent to gain a better understanding of the local MLS and how it works.