Real Estate Listing Terms – What Do They Really Mean?
The language of the trade, shorthand, lingo, jargon — every industry has its own version, a collection of terms that are fundamental to the process. The real estate business is no different. In fact, there are probably more terms in the real estate business than most. That’s why when you read a real estate listing, you may end up scratching your head over a plethora of puzzling terms. Read on, to help with demystifying the language into simple to understand terms.
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.
[AWC]Active with contract
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, and it can be helpful if a second buyer is waiting in the wings.
The seller has an agreed-upon contract with the potential buyer. That doesn’t mean that it’s a done deal by any means.
A contingent status means that the seller has accepted an offer and the home is under contract.
However, the sale is subject to, or conditioned upon, certain criteria being met by the seller and/or buyer before the deal can close. Several examples of contingencies are appraisal, home inspections, title search, buyer’s financing, and as well as other reasons.
As tasks are completed these contingencies fall away. There are times a property will continue to be shown when it is contingent, and the seller may be excepting backup offers. So if the property in question is your dream home, it could be worth writing an offer that the seller can’t refuse.
This means the seller has an accepted offer and an executed contract, and all contingencies have been met, so the home is now pending sale. This is known as the escrow period, when both seller and buyer are working toward a successful closing. The status of the property will show as pending until the closing. Even though a sale is highly likely, some pending properties may still accept backups. If the first sale falls through and your offer has been accepted as a backup, you’re in line to go under contract.
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, so go ahead and inquire if you’re interested.
The property is sold and no longer available.
[TOM]Temporarily off the market
The owner has removed the property from the listings for an unknown period, more than likely because work is being done on the house or because the home may not be able to be shown. It should return to an active status soon, so it’s certainly worth inquiring about if you are enamored.
[BOM]Back on market
A property that has come back on the market after a pending sale. This means that the home fell out of escrow, potentially due to contract issues.
Many variances a property is withdrawn from the market. The sellers may have had a change in circumstances, or they may just not have received any pleasing offers. If you love what you see in the listing, it certainly can’t hurt to inquire.
The property listing with the agent has expired and is no longer active, usually because the property didn’t sell. However, it could mean the seller is still open to accepting an offer, so if you’re curious it could be worth asking about.