MLS Status Guide: What Each Term Means for Buyers and Sellers
Understanding MLS (Multiple Listing Service) statuses is helpful for both buyers and sellers navigating the real estate market. These statuses provide insight into a property’s current standing—whether it’s available, under contract, or already sold. Here’s a breakdown of the most common MLS statuses and what they mean:
Active
When a property is listed as “Active,” it means the home is available for sale. However, it’s important to note that the status might not always be up-to-the-minute accurate. Real estate agents have a grace period, often a few days, to update the MLS status after a property goes under contract. Additionally, not all real estate websites sync with the MLS in real-time. As a result, a property that appears “Active” online might already be under contract in the MLS.
Active Under Contract
“Active Under Contract” is a newer and sometimes confusing status for homebuyers. It indicates that the property is under contract but still being shown to other potential buyers. This status is used when the seller is open to receiving backup offers in case the current deal falls through. Common reasons for this status include the buyer having contingencies, such as financing or inspection, or the seller being uncertain about the current buyer’s ability to close the deal.
Back-Up
When a property is listed as “Back-Up,” it means the seller has already accepted an offer, but they are still open to receiving backup offers. This status is common when the seller wants a backup plan in case the current contract falls through due to issues like financing or inspection contingencies.
Contingent
A “Contingent” status means the property is under contract, but the sale is dependent on certain conditions being met by the buyer. Common contingencies include a home inspection, financing, or the sale of the buyer’s current home.
While the property is technically still under contract, it’s not fully off the market until these contingencies are removed. Once all contingencies are cleared, the status typically changes to “Pending.”
Pending
When a property is listed as “Pending,” it means that all contingencies have been satisfied, and the sale is simply awaiting closing. At this stage, the property is no longer being marketed, and the deal is expected to go through without further issues.
Sold
“Sold” is the final status, indicating that the property has successfully closed and is no longer available on the market. The sale is complete, and ownership has officially transferred from the seller to the buyer.
Common Real Estate Abbreviations
In addition to understanding MLS statuses, it’s helpful to familiarize yourself with common real estate abbreviations that frequently appear in listings, contracts, and conversations. Here’s a quick guide:
AC (Air Conditioning)
AC stands for Air Conditioning, which is a common feature highlighted in real estate listings, particularly in warmer climates.
AC Sq Ft (Air Conditioned Square Feet)
AC Sq Ft refers to the portion of a property’s square footage that is air-conditioned. This can be an important factor for buyers in hotter climates who want to know how much of the home is cooled.
ARM (Adjustable-Rate Mortgage)
A mortgage with an interest rate that may change periodically based on the terms of the loan.
DOM (Days on Market)
DOM refers to the number of days a property has been on the market before going under contract. A high DOM can indicate that a property is overpriced or that there are other issues making it less desirable.
BPO (Broker Price Opinion)
An estimate of a property’s value provided by a real estate broker, often used by lenders.
CC&Rs (Covenants, Conditions, and Restrictions)
The rules and regulations governing a property or community, typically set by a homeowners association (HOA).
CMA (Comparative Market Analysis)
A CMA is a report prepared by a real estate agent that compares the property in question to similar properties that have recently sold in the same area. This analysis helps sellers set a competitive listing price and helps buyers make informed offers.
CO (Certificate of Occupancy)
A document issued by a local government agency certifying that a building complies with applicable building codes and is safe for occupancy.
DPA (Down Payment Assistance)
Programs that provide financial assistance to homebuyers to help cover the down payment on a home.
EMD (Earnest Money Deposit)
A deposit made by a buyer to demonstrate their serious intent to purchase a property, held in escrow until closing.
FHA (Federal Housing Administration)
A government agency that insures loans made by approved lenders, helping borrowers with lower credit scores or smaller down payments.
FSBO (For Sale By Owner)
A property being sold directly by the owner without the assistance of a real estate agent.
GFE (Good Faith Estimate)
A document provided by a lender that outlines the estimated costs and fees associated with obtaining a mortgage.
HOA (Homeowners Association)
HOA refers to the governing body in a community that enforces rules and regulations, often in subdivisions, condos, or townhome communities. HOAs typically charge fees that cover maintenance of common areas and other community amenities.
HUD (Department of Housing and Urban Development)
A U.S. government agency responsible for national policies and programs that address America’s housing needs.
LTV (Loan-to-Value Ratio)
The ratio of the loan amount to the appraised value or purchase price of the property, whichever is lower.
MLS (Multiple Listing Service)
MLS is a database used by real estate agents to list properties for sale. It provides detailed information about available properties and is the primary tool agents use to find and share listings with potential buyers.
NOI (Net Operating Income)
A calculation used to analyze the profitability of income-generating real estate, equal to revenue minus operating expenses.
PITI (Principal, Interest, Taxes, and Insurance)
PITI represents the four components of a monthly mortgage payment: principal, interest, taxes, and insurance. Lenders often use PITI to determine a borrower’s ability to afford a mortgage.
PIW (Property Inspection Waiver)
A PIW means that a physical home appraisal is not required by the buyer’s lender. This waiver is typically granted when the lender determines that the property’s value can be assessed based on other data sources.
PMI (Private Mortgage Insurance)
PMI is insurance that protects the lender in case the borrower defaults on their mortgage. It is typically required when a buyer puts down less than 20% of the home’s purchase price.
POA (Power of Attorney)
POA refers to the legal document that allows someone to act on another person’s behalf in legal or financial matters. In real estate, a POA might be used to authorize someone to sign documents on behalf of the buyer or seller.
POF (Proof of Funds)
POF is a document or statement that shows a buyer has the necessary funds to complete the purchase of a property. This is often required when making an offer, especially in cash transactions.
RESPA (Real Estate Settlement Procedures Act)
A federal law that helps protect consumers by requiring transparency and fairness in the home buying process.
REO (Real Estate Owned)
REO refers to properties that are owned by a bank, usually as a result of foreclosure. These properties are often sold “as-is” and can be an opportunity for buyers looking for discounted properties.
ROI (Return on Investment)
ROI measures the profitability of a real estate investment. A high ROI indicates that the property has generated significant profit relative to the initial purchase or renovation costs.
SFH (Single Family Home)
SFH stands for Single Family Home, which is a standalone residential property designed for one family.
SQ (Square Footage)
SQ refers to the square footage of a property, which is a key factor in determining the size and value of the home.
TC (Transaction Coordinator)
A TC is a professional who assists with the administrative aspects of a real estate transaction, ensuring that all paperwork is completed accurately and on time.
TH (Townhome)
TH stands for Townhome, which is a multi-level home that shares one or more walls with adjacent properties but has its own entrance.
TRID (TILA-RESPA Integrated Disclosure)
A rule that consolidated the Truth in Lending Act (TILA) and Real Estate Settlement Procedures Act (RESPA) disclosures, designed to improve consumer understanding of the mortgage process.
USDA (United States Department of Agriculture) Loan
A mortgage loan offered to rural property owners, with eligibility based on location and income.
VA (Veterans Affairs) Loan
A mortgage loan provided by private lenders and guaranteed by the U.S. Department of Veterans Affairs, available to veterans and active-duty military members.
WDO (Wood Destroying Organism)
WDO refers to pests like termites or carpenter ants that can cause significant damage to a home’s structure. A WDO inspection is often required in real estate transactions, especially in areas prone to such infestations.
Understanding these MLS statuses and abbreviations can help navigate the real estate market more effectively, whether buying or selling a home.
Final Thoughts
Understanding the various MLS listing statuses is helpful for both buyers and sellers navigating the real estate market. Each status provides information about a property’s availability and the current stage of the transaction. By familiarizing yourself with differences for terms such as “Active,” “Contingent,” “Pending,” and others, you can better interpret listings and possibly save yourself time and frustration.
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MLS Status Guide: What Each Term Means for Buyers and Sellers | Learn what each MLS status means in addition to other popular terms and phrases that might come up in a real estate transaction. #realestate #mlsstatusAbout the Author
Top Wellington Realtor, Michelle Gibson, wrote: “MLS Status Guide: What Each Term Means for Buyers and Sellers”
Michelle has been specializing in residential real estate since 2001 throughout Wellington Florida and the surrounding area. Whether you’re looking to buy, sell or rent she will guide you through the entire real estate transaction. If you’re ready to put Michelle’s knowledge and expertise to work for you call or e-mail her today.
Areas of service include Wellington, Lake Worth, Royal Palm Beach, Boynton Beach, West Palm Beach, Loxahatchee, Greenacres, and more.
Michelle Gibson of the Hansen Real Estate Group Inc is a full-time REALTOR who has been specializing in Wellington Florida real estate since 2001. This veteran of the real estate industry has expertise in technology, marketing, and social media.