Here is an explanation of some of the different Types of Real Estate Listings and statuses you may see when looking for a home in Minnesota:
Minnesota Listing Status Definitions:
When we send you listings from the MLS, here are the different statuses you may see on the listings.
Active (A) Active means the home is on the market and available for sale.
Active Contingent on Inspection (AI) This means that the home is still technically on the market, however the seller has accepted an offer contingent on the buyers inspection(s). They may allow back up offers in case the sale does not go forward. There are other types of contingencies that are less common.
Active Contingent on Sale of Property Seller has accepted an offer contingent on buyer selling their home. If you make an offer, seller will have to give the other buyer notice and if they don’t sell within a pre-determined time period, you may be able to purchase the home.
Pending (P) This means that an offer has been accepted and all contingencies lifted.
Temporarily Not Available for Sale (TNAS) The home has been temporarily removed from the market, either because seller cannot acommodate showings or the seller has accepted a contingent offer and has agreed not to show the home during the contingency period.
Sold (S) Property is sold and closed
Expired (E) The listing contract has ended or “Expired”. Home is not officially on the market.
Cancelled (C) Seller has cancelled the listing and home is not on the market. There are many reasons that a seller may cancel a listing.
Different Types of Listings:
This is just a quick overview, there are many scenarios that may come into play with any of these types of listings. Make sure you are working with an experienced real estate agent, lender and title company and/or attorney.
Traditional Seller The majority of transactions are traditional, and sellers are selling the home that they currently or recently lived in. May be lots of emotion involved.
Relocation Sale The seller is moving due to a job relocation, the relocation department of their company is managing the sale and any benefits that may go to the seller. Typically there will be more paperwork in this type of transaction because the relocation department will have their own forms. They often ask for an “AS-IS” sale. The seller has control, but the relocation may purchase the home from the seller first, meaning that you are buying from the relocation company, not the seller.
Investment Property Seller owns the home but does not live in the home, it may be a rental or a renovation. Less emotional, was used for investment purposes. There is a waiver of disclosure as seller never lived in home. If it is a renovation, pay close attention to quality of the work and call city to see if permits were pulled for any work.
Bank Owned Foreclosure The bank owns the home, often times they will sell slightly below market pricing, causing higher demand in many scenarios. There is more risk to the buyer because there is no seller’s disclosure. There will be more paperwork for a Bank Owned property and you may be asked to take on some risk surrounding the status of the title work.
HUD Sale Government owned foreclosure. The buyer takes on risk and some of the expenses such as paying and arranging for water and electricity to be turned on prior to inspection, and to dewinterize and rewinterize for inspection. There is a Waiver of Disclosure and HUD is also exempt from many state and city regulations such as a truth in housing inspection.
Short Sale Seller owns the home but may owe more to the bank than the home is worth. Bank must approve the sale and price, which may take awhile. The bank can decline the terms even though the seller has accepted the price and terms of the offer. You may wait 3-6 months to get an acceptance, counter, or rejection. If offer is accepted by bank, you will typically have 30 days to close. If there is a 2nd mortgage or HELOC, both banks will need to approve the sale if they are not being paid in full.
Estate Sale= The owner may be deceased or incapacitated and their representatives or family members are directing the sale. If there are family members involved, there may be lots of decision makers and lots of emotion.
Pre-Forclosure This means that the bank has started the foreclosure process, but the seller still owns the home. In Minnesota, as long as the mortgage and any fees and penalties are paid up with the sale, it can be treated like a normal sale.
Your agent will find out as much information as possible about the type of sale and give you advice on how to navigate the offer.