The term active real estate investor was coined in the 1980s when investors were just as likely to buy and sell properties quickly. Since then, there have been many people who fall into this category. Some do it for fun, while others are able to make money from investing in property.
There is no hard and fast rule about what makes an individual qualify as an active real estate investor. It depends on how much capital you have to invest and whether or not you want to be in control of your investment.
Active real estate investors typically spend lots of time talking about the market and investing. They may even share their strategies with other individuals so that they can learn from them. Many use social media to connect with like-minded individuals and stay up to date on current trends in the industry.
There is no wrong way to be an active real estate investor if that’s what you love to do. Just remember that you should try to add value through better marketing, negotiation, research and organization. You will also need to keep yourself clean and tidy by staying organized and responding promptly to messages and calls.
Active means the property is currently listed
The active listing status for a home indicates that it is still receiving attention and activity from its current seller or agent. This could be due to it being a very popular house for the same reason that many people love living in the area, or because there are available listings of lower priced houses which makes this one seem overpriced.
Having an active listing gives your house more exposure as well as potential buyers looking at similar homes in the area.
Active means the property is currently sold
The most active market for homes right now is what’s referred to as “active listing,” or when a home is listed for sale. This is different than having a vacant house that you are trying to sell!
A lot of agents think that an active listing is the same as a house being for sale, but it’t not. An active listing doesn’t mean there’s a person looking to buy the house yet. It can be sitting empty months after owners put it up for sale.
That’s why it’s important to look at the number of days a house has been on the market compared to how many days there have been since it was last listed.
The longer a house has been on the market, the less likely people will want to buy it because they assume it won’t go down in price very much (or at all). On the other hand, if a house hasn’t been on the market long then people may jump on the opportunity to purchase it because it’s still fairly new.
Another way to determine whether or not a house is actively marketed is by checking with your agent if they know anyone who’s looking to buy a similar home.
Active means the property is currently offered
The opposite of active is inactive, or what some call “sleepy” properties. An inactive listing will sit for weeks, if not months, without anything happening.
When it does get listed, very little time is spent marketing it. This can backfire and hurt your sales potential negatively.
Most people agree that buying a house is both an emotional as well as financial decision, which makes sense. If there are no signs of activity at all, then how could anyone be sure this house would stay active?
It is important to have confidence in the seller before investing money into them. You want to make sure they aren’t trying to pull off a scam by acting mysteriously.
As more individuals become comfortable with online marketplaces like Zillow, Movoto and Redfin, their chances of finding their dream home increase. By taking the first step and doing research, you can begin to evaluate whether or not a particular house is a good fit.
Active means there is a contract
Being active in the real estate market includes having a job that has you traveling around to showings or meetings, being involved in your community, and keeping up with friends who also are invested in the housing market.
Active investors go beyond just looking at houses and trying to find a deal. They look for things such as taking care of others, investing in yourself (through education or training), and sharing knowledge and resources with other people.
People with strong social connections are more likely to stay well-informed about the markets and keep each other informed as well. It’s not only important to be like them, but to want to become like them too.
Active means there is a pending contract
Another important indicator to look for is what we refer to as an active listing. This refers to when a seller lists their house or condo with a real estate agent, broker, or company that they have appointed as their representative.
A passive listing is one where the owner does not appoint anyone to represent them. They will either sell it themselves, hire someone directly, or let the agents handle it under their own brand. More often than not, this method is expensive for the seller because they are paying both the agent’s fee and cost of services to professionals (like title, lawyers, etc) to do business with them.
By having an active listing, the owners take care of all these things for you! This helps save sellers money in fees which can add up over time. For buyers looking to avoid any additional costs, it also gives them access to less listings which typically reduce the amount of competition and thus lowering prices.
So how do you know if a property has an active listing? There are several ways to find out. Some brokers have apps and tools that show this information, others advertise it more heavily, and some just ask people who attend open houses whether they know about an active listing.
Active means the property is likely to sell soon
When you put your house up for sale, what kind of activity does it get?
Does it sit there with no one looking at it or are people constantly coming by to check out the home? These are both good things, but they can be hard to maintain if you’re not used to it.
A more active listing will probably draw more attention because people want to see the house and/or talk to you about the house. People love real estate so much because it is such an interactive process. If someone wants to buy your house, they will watch all of the listings just like everyone else!
Another way to look at it is that people are interested in your house… which is great for exposure! A potential buyer could make their best offer any time after going through all of the other houses on the market. This is why it is important to list your house as quickly as possible since the longer it sits, the less chance you have of getting the right price.
And finally, being actively listed gives you the opportunity to find the right amount of homes for yourself and determine the timing of when to pull the trigger on selling. You know what you need and when is the best time frame for you.
Active means the property is likely to sell soon because the seller has put it on the market
When an agent defines “active” as referring to properties that are listed for less than one month, it doesn’t tell you everything about what makes an active listing. It may just describe which types of listings sellers prefer.
What most people don’t realize is that many wealthy individuals choose not to list their homes directly through Re/Max or other real estate agents. They instead opt to use direct marketing sites like Zillow and PropertyBros to promote their home!
This isn’t necessarily a bad thing, but it can make finding your dream house more difficult. The rich tend to live in much bigger houses with higher price tags, so they’re not looking to buy a new home at the moment.
When they do decide to move, they’ll probably find a way to deal with their current real estate agency. A lot of them have relationships where they will ask their agent to represent both sides of the sale, or work exclusively with one broker only.
Active means there is a contract and the seller has put it on the market
The active listing status indicates that a property has been listed for sale. This could be done by an agent or homeowner directly. Agents typically list their sellers’ homes for them, so they don’t need to check this box themselves.
When agents place a house onto the MLS (Multiple Listing Service) as “active”, this signifies that they are actively seeking a buyer and have set time frames for finding one. They may also include additional information about the home such as photos or a description of the features.
Sellers do not usually use the MLS to advertise their houses, but when they choose to, this can help bring more interest to their property.