Buying an active house under contract is possible in the Massachusetts real estate market. When a property is labeled as ‘active under contract,’ the sellers have accepted an offer, but the deal is not yet closed. Buyers can still make offers and visit the property with the sellers’ permission.

However, these offers are considered back-up, contingent on the initial agreement falling through. Different contingencies and requirements must be met before the sale can proceed.

Understanding these nuances is crucial for both buyers and sellers. We will look at what you need to know about active-under-contract properties in Massachusetts.

Can You Buy a House That is Active Under Contract?

Can You Buy a House Active Under Contract

Buying an Active Under Contract House in Massachusetts

Regarding real estate transactions, the term “active under contract” often raises questions for potential home buyers. Understanding this status is crucial for purchasing a house currently under contract.

We will explore what “active under contract” means and its implications for buyers.

Understanding ‘Active Under Contract’ in Massachusetts Real Estate

The term “active under contract” refers to a specific stage in the home-selling process. It indicates that the sellers have accepted an offer from a buyer, but the transaction is not yet finalized.

During this phase, buyers still have the opportunity to make alternative offers and visit the property with the sellers’ permission. However, it’s important to note that these additional offers are typically considered back-up submissions.

Homes under contract fall through, so it is worthwhile to investigate them.

Key Differences between ‘Active Under Contract’ and ‘Pending’

It’s crucial to differentiate between “active under contract” and “pending ” statuses.” While both indicate that an offer has been accepted, “active under contract” allows for additional back-up offers, whereas “pending” means that the home sale is in its final stages. No further bids are being accepted.

“Contingent” is another name for active under contract.

The transition from “active under contract” to “pending” occurs once all the contingencies mentioned in the contract have been resolved.

It is worth noting that even pending home sales fall apart. It is less likely, but it can happen. Many buyers have lost their jobs before closing.

Exploring the Implications of Buying a House ‘Active Under Contract

Buying a house marked as “active under contract” requires careful consideration. As a potential buyer, you need to know that the initial offer has already been accepted, and your offer would be considered a back-up offer. If the primary agreement falls through, your offer might come into play.

Additionally, various contingencies and requirements must be met before the sale can be finalized. For example, the primary buyer may have specific conditions, such as selling their home before purchasing. These contingencies can impact the timeline and certainty of the transaction.

Knowledge of the “active under contract” status allows buyers to make informed decisions during home-buying.

In the following sections, we will explore how this status impacts home buyers, navigating contingencies and requirements, being a backup buyer, considerations for both buyers and sellers and tips for those interested in purchasing a property labeled as “active under contract.”

How Does the ‘Active Under Contract’ Status Impact Home Buyers?

When a house is labeled as ‘active under contract,’ it has significant implications for home buyers in the United States.

We will examine how this status influences buying, including making offers, navigating contingencies and requirements, and being a backup buyer.

Making Offers on an Active Under Contract Property

While a property is active under contract, homebuyers can still make offers. However, these offers are considered back-up, as the initial agreement with another buyer has already been made.

Home buyers must be prepared for the possibility that their offer will not be accepted unless the initial agreement falls through. Working closely with a real estate agent ensures the submission is competitive and meets the sellers’ requirements.

Navigating Contingencies and Requirements

During the active under-contract phase, contingencies and requirements may need to be fulfilled before the sale can proceed. These could include selling the buyer’s property, obtaining financing, or completing necessary home inspections.

Home buyers must carefully review and understand these contingencies and fulfill them within the specified timeframes to avoid jeopardizing the transaction.

Working closely with an agent and other professionals can help navigate these complexities.

Being a Back-up Buyer: What to Expect

As a backup buyer for an active under-contract property, home buyers must be aware that their offer is not the primary one being considered. The sellers and their agents have already accepted an initial offer, and the backup offer will only come into play if the initial agreement falls through.

Back-up buyers should stay informed about the progress of the initial agreement and be ready to move forward quickly if given the opportunity. While it may involve some uncertainty, being a backup buyer can potentially lead to securing the property if the primary deal falls through.

Considerations for Buyers and Sellers During the ‘Active Under Contract’ Phase

When a house is labeled as ‘active under contract,’ buyers and sellers must consider a few essential factors. Understanding the seller’s control over the MLS status, managing offers and negotiations, and comprehending contract termination and backup offers are critical considerations during this phase.

Seller Control over MLS Status

Sellers have control over the status of their property in the MLS. They can instruct their selling agent to keep the house listed as ‘active under contract’ or change it to ‘pending.’

As a buyer, it’s crucial to communicate with your agent and stay updated on the status of the property. This allows you to gauge the competition and decide whether to proceed with an offer or explore other options.

Managing Offers and Negotiations

During the ‘active under contract’ phase, sellers can continue to receive and evaluate offers from potential buyers. Buyers must work closely with their real estate agent to prepare a competitive offer and negotiate effectively.

Remember that your offer may be considered a back-up offer, depending on the status of the initial agreement. Understanding the market conditions and conducting thorough research on comparable properties can give you an advantage during negotiations.

Understanding Contract Termination and Back-up Offers

If the initial contract falls through, the seller may consider back-up offers. Both buyers and sellers must understand the terms and conditions of the agreement regarding termination and the acceptance of back-up offers.

As a buyer, you should know that your offer may be activated if the initial agreement fails, so be prepared to proceed with the purchase if necessary.

  • Stay in close contact with your real estate agent to receive updates on the status of the property.
  • Prepare a competitive offer by analyzing market conditions and comparable properties.
  • Be open to negotiations and work closely with your agent to maximize your chances of success.
  • Understand the terms and conditions of the contract regarding termination and back-up offers.
  • Be prepared to proceed with the purchase if your offer becomes activated.

Considering these factors during the ‘active under contract’ phase, buyers and sellers can navigate the real estate process more effectively and make informed decisions.

Tips for buyers interested in ‘Active Under Contract’ Massachusetts Homes

Remember a few essential tips when considering buying an active house under contract. Understanding the process and taking precautions can help you navigate this unique situation.

Here are some valuable tips for buyers interested in ‘Active Under Contract’ homes:

Ensuring Financing and Pre-Approval

Ensuring your financing is in order before making an offer on an ‘Active Under Contract’ home is crucial. Get pre-approved for a mortgage to determine your budget and show the sellers that you are a serious buyer.

This pre-approval will give you a better chance when competing with other potential buyers for the property.

Conducting Due Diligence and Property Visits

Even though a house is active under contract, conducting due diligence and visiting the property thoroughly is crucial. This includes reviewing property disclosures, inspecting the home, and completing necessary assessments.

Hire a professional inspector to uncover potential issues affecting your purchase decision.

Working with Agents and Staying Informed

Collaborating with a knowledgeable real estate agent can benefit you as a buyer. They can guide you through the process, negotiate on your behalf, and keep you informed about any changes in the status of the property.

Stay in regular communication with your agent to ensure you are updated on any updates or developments related to the property you are interested in.

Following these tips, you can navigate the unique challenges and opportunities by buying an active house under contract. Remember to stay proactive and informed. Work closely with your buyer’s agent to make well-informed decisions.

Finalizing the sale: From ‘Active Under Contract’ to ‘Pending’

Once a house is marked as ‘active under contract,’ the final steps towards closing the sale and transitioning it to ‘pending’ begin. This phase involves completing the escrow process, finalizing contingencies, ensuring a smooth closing, and transferring funds.

Finalizing Contingencies

Contingencies may include property inspections, obtaining financing, or addressing necessary repairs or negotiations based on inspection results.

As the buyer, staying proactive and promptly completing any outstanding obligations to satisfy these contingencies is crucial. Once all contingencies are met, you will finalize the sale.

Ensuring Smooth Closing and Funds Transfer

Smooth closing requires coordination between the buyer, seller, and relevant parties such as lenders, real estate attorneys, and title companies. During this phase, all necessary legal documents, such as the deed, mortgage, and insurance policies, are reviewed, prepared, and signed.

The funds transfer is a crucial aspect of closing the sale. The buyer must ensure that the necessary funds, including the down payment and closing costs, are readily available and deposited into the designated escrow account.

The escrow officer oversees the proper distribution of funds, including payments to the seller, real estate agents, and other parties involved.

Successfully Transitioning from ‘Active Under Contract’ to ‘Pending’

Successfully transitioning a house from ‘active under contract’ to ‘pending’ confirms that all necessary steps have been completed and the sale is reaching its final stages.

During this transition, the MLS status is updated to reflect the pending status, indicating that the property is no longer open for backup offers.

Finalizing the sale and transitioning from ‘active under contract’ to ‘pending’ is an exciting milestone for buyers and sellers. It signifies that all required contingencies have been satisfied, funds have been transferred, and the closing process is nearing completion.

To ensure a successful transition, both parties must communicate closely with their respective real estate agents and prepare for closing.