Okay, maybe more than just one question. Are you working with a Realtor? Do you have a lender?
If you're not working with a Realtor, I suggest you get one right away. The FIRST and foremost step in purchasing a home is to get with a Realtor. Check with friends and family to see if they can refer someone to you or research sites, such as this one to find a good professional Realtor. Your SECOND step is to get pre-qualified for a loan. AFTER you find a Realtor, he or she will have you meet with the lender that he or she uses regularly. This is important. Please let me know if I can help or if you have any more questions.
Keller Williams Realty
STATUS - What is all means... usually,... depending on the agent or brokerage
Active - this is the part home buyers should mainly focus on.
Backup - the seller has a buyer in a signed contract and the buyer is doing their inspections
Pending - all contingencies have been removed, awaiting funding to close
Sold - the property has been sold - this is the only place to get comps. not any of the above.
In answer to your question...
It means they have already signed a contract.
When or should I say IF it becomes available again it will go on the ACTIVE status.
Home buyers should really focus on the ACTIVE homes unless they want to waste a great deal of time.
Harold Sharpe - Broker
So Cal Homes Realty
California Department of Real Estate Broker License # 01312992
In our current market, properties in backup status are likely short sales. In a short sale, the lienholder (which I will call the bank from now on, just to make things simpler) must agree to take a loss on the loan, because the home is worth less than the balance on the mortgage. When the seller signs an offer, it goes to the bank who services the loan, and there usually is a significant waiting period while they processthe short sale request and either approve it or reject it.
Any offers received on the property other than the offer currently being processed by the bank is considered a "backup" offer. These backup offers are helpful to have in a short sale. Many times, buyers continue to look at other properties while waiting for short sale approval, or they cannot purchase the property because their circumstances change. In these cases, they back out of or "walk" from the deal before the short sale is approved. So then the backup offers are reviewed and the next best offer is submitted to the bank.
If you have more questions, feel free to contact me.
Great question! The reference to a backup offer means that the home is already under a pending purchase contract; however, the listing agent is wanting to protect the sellers by keeping their options open for new offers. There are many reasons a agent would continue to take backup offers. For example, perhaps the current buyers have put in an offer that has a contingency to sell their existing home prior to closing on the offer. In this case, the listing agent has no guarantee they will be able to sell their home within the contract period.
Are you currently working with an agent? Have you been preapproved for a mortgage? Preapproval is absolutely essential to having your offer on a property accepted. If you have more questions about financing and buying a property, please contact me via my profile. I can also refer you to a great buyers agent if needed. Best of luck to you!