Understanding the Contract Status of a Home for Sale: Is it Still Really for Sale?
Here are the terms and definitions you will frequently encounter in your home search. Understanding the contract status of a home for sale will save you time and aggravation. The following current status of each individual property usually appears on many web sites:
ACTIVE – This house is for sale and is not under contract.
CONTINGENT W/KICKOUT – That doesn’t sound too friendly does it? This term is for properties that have an accepted contract that include contingencies including a “kick-out clause”.
This is often used when a home buyer places a house under contract with the understanding the he must sell his current house before finalizing the new purchase.
Sellers holding a contract wth a kick-out clause continue to market the home. If they receive another offer the buyer then has a specific amount of time as stated in the clause to remove the contingency and buy the home whether his existing home is sold or not. If the buyer cannot move forward, the seller can back out of the contract and sell to the new buyers.
CONTINGENT NO KICK-OUT – This is for properties that have an accepted contract that includes contingencies but with no kickout clause.
CONTINGENT SHORT SALE – For properties that have an accepted contract accepted by the owner subject to lender approval.
PENDING – For properties with an accepted contract. Properties will remain in this status until they close or until 9 months past the expiration date.
OPTION – For properties with an accepted contract and in the initial inspection period. Properties is this status will move to the Pending status when the inspection contingency expires.
Why Do Some Web Sites Show Old Data?
Can’t say for sure. Maybe it’s their way of finding new buyers. See if this scenario makes sense:
Salesperson: (Phone rings) “Hello this is Lower Standard Real Estate Company how may I help you?”
Buyer: “I saw a home on your site I’m interested in on 123 Main Street.”
Salesperson: “I’m sorry but that home has been under contract for awhile. I do have several other properties similar to this one … would you like me to send you some information? What was your name?” And the game begins … you’ve just wasted your time!
Here’s the bottom line: If the status says 1. Active or 2. Contingent with Kickout you still have a chance to purchase that property. Anything else? You’re wasting your time! Happy House Hunting and call us about any property and we will tell you the status. 636-532-4200
Published on 2018-05-30 22:05:57