Q. A client recently asked me what “Active With Contract” signified on a home listed for sale.
A. In most cases a status of “active with contract” means the seller has accepted an offer, but is also entertaining backup offers. Most sellers prefer to actively search for a backup offer in the event the first buyer is unable to close. This is more common with short sales – these can take up to 7-8 months and the buyer can get tired of waiting.
In most cases of a buyer seeking a primary residence I would not recommend making a backup offer. You can only be in one contract at a time unless you can qualify to close on both. This limits buyers from actively pursuing other properties. You have to be released from the first offer before making an offer on a different property. Although the release only requires a notice, it must be signed by both parties and this can sometimes take a few days.
In this current South Florida sellers market, delaying for a few days can be the difference between getting an offer accepted on another property or losing out to other buyers who can write an offer immediately.
