What Does Active With Offer Mean in Real Estate?

Understanding real estate listing statuses is important. One such status, “active with offer,” indicates a property has an accepted offer but remains on the market for specific reasons. Grasping this status is valuable for navigating competitive situations and making informed decisions.

Understanding the Status

A property listed as “active with offer” signifies an accepted purchase proposal. Despite this, the property continues to be marketed on the Multiple Listing Service (MLS). This status is employed when the accepted offer includes contingencies, which are conditions that must be satisfied before the sale can be finalized. Common contingencies include the buyer securing financing, a satisfactory home inspection, the property appraising at or above the purchase price, or the sale of the buyer’s current home. Until these conditions are met, the initial deal carries a risk of falling through.

For sellers, maintaining an “active with offer” status provides a strategic advantage by allowing them to seek and potentially accept backup offers. If the primary offer fails to close due to unmet contingencies, a pre-arranged backup offer can quickly step in, preventing the need to re-list the property and restart the entire marketing process. This approach offers continuity in the selling process. For buyers, seeing a property as “active with offer” means that while an offer is in place, there is still an opportunity to submit a backup offer. A strong backup offer could become the primary contract if the initial deal encounters issues, providing a chance to acquire a desired property.

Comparing Listing Statuses

To understand “active with offer,” compare it to other listing statuses. An “active” listing means the property is available for sale, has no accepted offers, and is open for showings and new proposals. This is the initial stage where buyers can make their first offers without competition from an existing contract.

In contrast, a “pending” status indicates that an offer has been accepted, and all contingencies have been met or waived. At this stage, the sale progresses towards closing, and sellers generally do not seek backup offers or allow further showings. The transaction is considered to be on track for completion.

A “contingent” status is similar to “active with offer” as it also means an offer has been accepted but remains subject to specific conditions. The key difference is that “active with offer” explicitly invites backup offers and continued showings, highlighting the seller’s continued openness to other proposals. Finally, a “sold” status confirms that the transaction has successfully closed, and ownership of the property has officially transferred to the buyer.

Navigating Listings with This Status

Buyers encountering an “active with offer” listing should understand that while a primary offer exists, the property is not definitively off the market. They can still work with their real estate agent to gauge the likelihood of the current deal falling through and determine if submitting a backup offer is a viable strategy. Crafting a strong, competitive backup offer, potentially with favorable terms or a higher price, can position a buyer advantageously if the initial contract falters. Communicate serious intent and provide all necessary documentation, such as mortgage pre-approval, to demonstrate readiness to proceed.

For sellers, utilizing the “active with offer” status can be a strategy, particularly when the accepted offer has significant contingencies or if market conditions suggest a stronger backup offer might emerge. This allows the seller to maintain market exposure and leverage, even while under contract. Effective communication with their real estate agent is essential for managing expectations, handling multiple inquiries, and properly structuring any backup offers received.