What does Active Short Sale Contingent Mean? metrolist, Tracy CA
Jun 28, · 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. Dec 11, · If a home’s status is “active contingent,” it means that the buyer has submitted an offer to the seller with contingencies, or issues that must be resolved before the .
In the multiple activr services in northern California, once a seller has accepted a short sale offerthat listing can be placed into a status called "active short contingent.
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. 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.
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:. 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. 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 salee.
When another offer gets accepted from these how to cancel amazon prime membership 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 dale 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, the best strategic move is to be the accepted asle.
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 how to get paint off leather 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. The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors.
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May 22, · Active contingent is one of the many status updates given to a property listing. If a property has an active contingent status, it means the seller has accepted an offer from a buyer. However, the home sale isn’t finalized yet because certain contingencies need to be met. January 08, Share. An active contingent property is under contract with another buyer, but the final sale of the home is dependent (contingent) on a specific set of criteria that must be met. If the property falls short of those expectations, the buyer is able to rescind their offer. If you’re a homebuyer searching for homes online, you may find yourself interested in homes that are labeled “Active . In a short sale, the status becomes listed as “active short contingent,” denoting that the short sale is contingent on third party approval and the listing will continue as active until approval is.
At some point, you might have come across a property listed as active contingent. Active contingent is one of the many status updates given to a property listing. If a property has an active contingent status, it means the seller has accepted an offer from a buyer. On the flip side, you may see a property listed as pending instead.
A pending status means that the seller has accepted an offer, and all of its contingencies have been satisfied, addressed, or waived. The home will remain in pending status until all the paperwork is processed and the deal officially closes. Home buyers often add contingencies to their offer in order to protect themselves if something goes wrong during the sale. More specifically, these contingencies allow the buyer to back out of the contract under specific conditions without losing their earnest money deposit.
There are a few different types of contingencies in real estate:. A financing contingency , also known as a loan contingency, means that if the buyer has trouble getting a mortgage for the home purchase, they can drop out of the contract with no penalty. That way, they can avoid overlapping housing costs.
An inspection contingency gives buyers the ability to negotiate repairs or cancel the contract based on the results of a home inspection. An appraisal contingency states that if the appraised value of the home is lower than the purchase price, the buyer can negotiate the purchase price or walk away at no cost.
Can a home buyer make an offer on an active contingent listing? Contingencies present a sort of dilemma. So is it possible for buyers to avoid contingencies with no downside? If you work with Orchard, you can get many of the benefits of a non-contingent offer. For current homeowners looking to buy their next home, we help you make a strong, competitive offer without a home sale contingency.
With Orchard Move First, secure your dream home before you list. Avoid home showings, double mortgages, and double moves. All rights reserved. Get Started.
In this article:. What does an active contingent status mean? What does a pending status mean? What are common contingencies in real estate? There are a few different types of contingencies in real estate: Financing contingency A financing contingency , also known as a loan contingency, means that if the buyer has trouble getting a mortgage for the home purchase, they can drop out of the contract with no penalty.
Inspection contingency An inspection contingency gives buyers the ability to negotiate repairs or cancel the contract based on the results of a home inspection. Appraisal contingency An appraisal contingency states that if the appraised value of the home is lower than the purchase price, the buyer can negotiate the purchase price or walk away at no cost. Can you make an offer on active contingent properties? The bottom line Contingencies present a sort of dilemma.
Amy Puchaty. Amy Puchaty is a Denver-based writer and editor with over a decade of marketing, PR, and real estate experience. Read full author bio. Learn More. Thank you! Your submission has been received! More from Orchard Get a Home Valuation. The stress-free way to buy and sell With Orchard Move First, secure your dream home before you list. Related Articles. Partners For Builders.