Cape Coral Real Estate Property for Sale Statuses Explained
Have you ever wondered what certain statuses mean that you see in the real estate marketplace? Some are very local in nature while others are universal. In this article, we will discuss the different statuses you may come across in the Cape Coral real estate market.
Properties that are for sale are available for viewing, placing an offer and purchasing. They may or may not also be available for rent.
Properties that are for rent are available for leasing/renting. They may or may not also be available for sale.
LEASE PURCHASE / RENT TO OWN / LEASE OPTION / LAND CONTRACT / SELLER FINANCING
This generally is used for a property where the seller is open to alternative selling scenarios. The seller may be open to seller financing or lease purchase terms. You should discuss the terms and pros/cons with your real estate agent.
First of all, when a property is listed for sale it is known as “Active”. This means it is active on the real estate market. MLS is a term used by real estate agents to denote their “Multiple Listing Service”. The MLS is a data share program for licensed real estate agents to cooperate with each other. This means that they are working with other real estate agents and also share their commissions with another real estate agent to bring a buyer. Most MLSs also share or syndicate their listings to other real estate websites/portals and even other real estate brokerages’ websites. This should mean that there are no accepted offers on the property and that is available for showings. There could however be offers on the table but until an offer is accepted by all parties it remains in ACTIVE status.
Pre-Listed or Coming Soon Status
Sometimes you may see something marketed pre-listing. Real estate agents may use terms such as “coming soon” or “not on the MLS yet”, etc. You may also hear of a term a real estate agent uses as a “pocket listing”. This typically means that the listing agent (real estate agent working for the seller) has an agreement to list & sell the property but they have agreed to keep it off of the MLS until a certain date in the future. Why would a seller want this? There are a few reasons but most likely the listing agent has suggested it to try to find a buyer on their own without the help of other real estate agents. They may have a buyer pool through their own database or their brokerage where they can tap into buyers searching for homes. This allows the agent to sell the home quicker and possibly to work with both the buyer & the seller themselves. This is completely legal in the state of Florida as we are all transaction brokers unless otherwise noted. We can get into representation in another article but for this article, I will keep on track to discuss the statuses. As a seller, you may want to “test” the market before you actually go live on the MLS. Perhaps you are still working on staging or repairs to prepare for the market or you don’t want many showings right now, etc. The cons of going under contract before the house is actually listed on the MLS is that you may end up with an offer below market value or for less than you could have otherwise received after being marketing thoroughly. Obviously, this is something you’ll want to discuss with your real estate agent and does not happen with all transactions. Some MLSs do NOT allow properties to be pre-listed or marketed prior to being active on the MLS.
When a property is listed as “active contingent” this means that there is an accepted offer on the property however there are still contingencies to be met. A contingency in a real estate sale is usually for an inspection period or a financing period for the buyer. This means that the buyer has so many days to complete their home inspections and obtain financing. Usually, during the active contingent phase, the seller will still allow others to see the property or put in back up offers but a buyer should understand that it is under contract with another buyer. Sometimes this is also called “under contract”.
When a property is marked in a pending status this means that the property has an accepted offer and the contingency time periods have passed or have otherwise been removed. This typically means that the closing will be happening soon. There is still a slight chance that the property may not close but in most cases, this means that the property is no longer available to see or place offers on. Sometimes this is also called “under contract”.
Back on the Market
This status means that the property had been under contract for purchase with another buyer but something went wrong. It could have been an issue with the property but more times than not it has something to do with the buyer. Either they changed their mind or were denied their financing in most cases. You can always have your agent ask what happened. If it was due to an issue of the property it must be disclosed.
Closed / Sold
Once a property is marked as closed or sold the property is no longer “on the market” & has transferred ownership from one (seller) to another (buyer).
I hope this has helped you with your real estate search. Should you have any other questions please reach out to our office to speak with a licensed real estate agent to discuss. We look forward to working with you!