4 Online home sale statuses explained

It used to be for people that were interested in purchasing a home the first step was they would pick up a Homes Magazine in the grocery store to flip through and scan what homes were going for and what was available. First Time Homebuyers and even experienced home buyers may have some confusion on what all the different categories actually mean.

Fast forward 10 years and now most people start their home shopping online. This can get confusing when you start noticing all the different status of homes. I hope to clear up a bit of the confusion by explaining the different status types.

#1 ACTIVE– This one is pretty self explanatory, the home is Available for buyers to view and make offers.

#2 OPTION PENDING- This means and Offer Has been Accepted on the home. A contract Has been signed and executed. However the Buyer has paid the seller a fee to have an Unrestricted Right to Terminate within a specific time period. Usually this is a 10 day period it can be shorter or longer as agreed. This is a time period that the buyer uses to get the home inspected and negotiate any needed repairs. The Buyer for any reason may Terminate the contract within the Option Period. If you are interested in a home that has an Option Pending Status, you can still view the home and make a back up offer or keep watching it to see if it goes back Active.

#3 PENDING – This means the Option Period is over and the Buyer is now locked into the contract. Occasionally something changes with the buyer to where they can not complete the financing, or appraisal issues arise and a Pending home may then go back Active. However I would not recommend you pin your hopes to a Pending home going Active again.

#4 PENDING CONTINGENT – This is a Hybrid category, a buyer has a signed contract with the seller. However the buyer has made the sale contingent upon them closing the sale on a home they own. The buyer has to do all the inspections during the option period and proceed as a normal contract. If you are interested in a Pending Contingent home you may make an offer on it, if the sellers like your offer over the current buyer they can go to the contingent buyer and say, You need to drop the Contingency and close or Terminate the contract. Most buyers will at that point have to terminate the deal and step aside allowing the new buyer to go under contract on the home.

That is the four categories of homes for sale explained in a nut shell. Of course this is a high level explanation if you would like additional information please contact your local Realtor®.