Unless you're a real estate agent, you probably don't know all the ins and outs of the industry. And that's okay! However, there are some terms that are important for homebuyers to know. In this blog post, we'll break down three real estate terms that you need to be familiar with: Active Under Contract, Pending, and Accepting Backup Offers.
Active Under Contract
This is a term you'll see often when searching for homes online. Active under contract means that the seller has accepted an offer from a buyer, but the sale is not yet complete. There are usually contingency periods built into the contract (more on that later), which can range from a few days to a few weeks. Once all contingencies have been met and both parties have signed off on the final paperwork, the home is considered closed.
Pending
Pending is very similar to active under contract, but usually means that all contingency periods have been met and the sale is in its final stages. At this point, it's just a matter of dotting the i's and crossing the t's before the sale is complete.
Accepting Backup Offers
You may see this term if you're searching for homes in a competitive market. If a home is under contract but also accepting backup offers, it means that the seller is willing to entertain offers from other interested buyers in case the original deal falls through. However, backup offers are often only accepted if they meet or exceed the original offer in price and/or contingencies.
Overall
These are just three of many real estate terms that you'll come across during your homebuying journey. While it's not necessary to know every single term out there, it's helpful to be familiar with some of the more common ones. After all, knowledge is power! Armed with this knowledge, you can approach your home search with confidence knowing exactly what you're looking for.