Home Buying in Fallon>Question Details

Dr D, Home Buyer in Fallon, NV

What does "Off the market" really mean?

Asked by Dr D, Fallon, NV Fri Aug 28, 2009

My wife and I recently put in an offer on a home that was accepted. In the terms, we put down a GFD to compensate the seller for the time the home would be "off the market" during escrow, should we back out/not get approved. My question is: What does "Off the Market" mean? I ask because we have been able to search for (and find) this particular for the past 30 days of our escrow, on any number of real estate websites, to include the local company with whom it's listed. Does "Off the Market" mean that they tell people who may inquire about the home (after finding it on a web search) that it's off the market? I was under the impression the GFD was also to protect us by getting the house off the searchable market so that someone else did not swoop in with a higher offer to the seller? Your experienced answers are appreciated :-)

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It may be different in differnent states, but usually when a house is off the market it is no longer for sale.

If you have a signed contract then it should be marked CTG (contingent) or PEND (pending) in the main MLS (multiple listing service or the likes of). This lets agents know that their is a contract on the house. This will usually stay this way until closing and then once the house closes it will get closed out in the system.

The sites that pull from the main system are sometimes behind what the actual status of the home is. House can show up as still on the market even after they have been sold and closed.

If you have a signed offer and are past the contingencies any offer that would come in would now be a back up offer. You offer would have to be canceled for the next offer to move forward. Hope that helps.
2 votes Thank Flag Link Fri Aug 28, 2009
Off market means that the listing Broker is NOT submitting it to the MLS, and by association all the websites that feed off the MLS. That's all. Some websites, like Trulia and Zillow, allow agents to place listings on their site without it being in the MLS.... and some agents do this with off market homes. That is likely what is confusing you (and understandably so).

In my location (Silicon Valley), when we say off market, we mean not advertised other than by word of mouth through the Broker/Agent network.

Also, a GFD (which I think you're calling a Good Faith Deposit) is more commonly known as an Earnest Money Deposit (EMD) and is NOT anything other than the beginning (and sometime all of) your down payment. It's just provided up front so the seller has some degree of assurance that you're serious about the purchase. A GFD/EMD is not an additional amount or any kind of compensation for the inconvenience of removing a home from the active market. I sincerely hope a Realtor didn't tell you that.

The bottom line is this. Once your Offer is accepted, you submit your GFD/EMD to the escrow holder. Having a purchase agreement that has been accepted by both buyer and seller is all the protection you need. Neither the buyer nor seller can back out of the agreement unless the other side fails to perform or one of the agreement contingencies are not met. The EMD is what the buyer risks by backing out of an agreement for no good reason. The seller only risks the time he's not active on the market.

Also, most MLS systems give brokers the option to place a home in a "pending sale" status. Pending sale usually has several options, including "Pending, Continue to show" which I use if a buyer for my listing has signed a purchase agreement with my buyer but they have not yet removed their contract contingencies. Agents can still show the home with this status, and as a listing agent I'm likely trying to collect back-up offers during this time (in case the first agreement falls apart). "Pending, No Show" is what I use when those contingencies get removed. At that time, the property stops getting shown and we're usually close to closing the transaction. "Pending Release" is another form of Pending that indicates the property is under purchase contract, but the contract contingencies are not yet removed.

Sorry, I got long winded. I hope this helps some:)

David
0 votes Thank Flag Link Sat Mar 16, 2013
You think THat's a stumper try, 'pending/active'.
0 votes Thank Flag Link Mon Oct 8, 2012
i dont really know i just was trying to sind the answer?
0 votes Thank Flag Link Sat Apr 14, 2012
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