MLS Property Status...explained!

While you're surfing the internet you are bound to see some Realtor lingo that probably looks a bit confusing. I get this question all the time...Hey, what does active option mean? Let me give you a little insight on the different statuses that you may see while searching for a home to buy or sell.

Property Status: Brief description of the contract status on the home. There are several status's that you may see while out surfing the web.

•  Active: This property is listed with a Realtor that does not have an accepted contract. This does not mean that there could not be offers any offers on the table it just means that the seller has not accepted an offer.
• Active Option: There is an accepted contract on this home however the buyers Realtor has a negotiated an amount of time that the buyer has the unrestricted right to walk away from the contract FOR ANY REASON and still receive their earnest money deposit. However the fee that was paid for the unrestricted right to walk away, also know as the option fee, is given to the seller as settlement for the time off the market, should the buyer decided to walk away from the contract during the option period.  The number of days that the parties agree to will vary from contract to contract and the amount of money that the buyer will pay for this right will vary as well. The buyer will typically have property inspections done during this time and negotiate repairs. 
• Active Contingent: This means that the seller has accepted an offer on the property but certain things must happen for the buyer to be able to close on the property. Buyers who submit contingent offers typically need to secure financing after the sale of their existing home but again the reason for a contingent contract will vary from contract to contract.
• Pending: You will see this status once the seller has an accepted offer and the option period is no longer in effect. All parties involved are waiting for the closing documents to be prepared and signed. Most real estate websites will no longer advertise properties once they are placed into a Pending status. Properties in pending status are no longer allowed to be shown by Realtors unless granted special permission by the owners.
• Sold: The chain of title has passed to the new owners and the home is no longer available for sale.
• Temporarily off the Market (TOM): We see this status from time to time and it typically has something to do with a sudden unforeseen circumstance but the seller would still like to sell the property. The listing agents contract to list the home is still in effect however they must stop marketing efforts until the time that the seller instructs their agent to actively market the home again or the listing agreement expires.
• Cancelled: The home has been taken off the market. This happens most often when the seller has changed their mind decided not to sell the home and terminated the listing agreement with their listing agent.
• Withdrawn: Also a status for a home that is no longer available for sale. The seller may withdraw a property from the market because they intend to try a new marketing strategy. The reason will vary from seller to seller however the result is still the same. The property is no longer available.
• Expired: The general public often times will not see this as an advertised status. Basically this means that the listing agreement that the sellers signed with their listing agent is now expired and the home is off the market until the seller decides to put it back on the market.

Active Option status

Link to our website with a few more examples