What Does Under Contract Mean in Real Estate?

 

If you’ve been looking for your first home, or are just starting to browse listings, you may have noticed homes marked as being “under contract” or “pending sale.” But what does that mean? Is it the same as being sold, or are there some important details that you need to know before making an offer on a property?

When a property is listed as under contract, it means that the seller has accepted an offer on the property. This is a major step, but there are still some contingencies that need to be addressed in order for the sale to close. For example, the buyer may be waiting to secure their financing, or they may have a contingency that requires that their current home sells before they can purchase and close on their new one. Read more https://www.creatingrealestatesolutions.com/we-buy-houses-florida/

Once the contingencies have been addressed and the buyer has received a clear title to the property, the property will move from being under contract to pending sale. This indicates that the sale is almost complete and that it’s just a matter of scheduling the final closing date and completing all the necessary paperwork.

During the under contract phase, buyers can still make offers on properties that are still actively being advertised, as long as the seller is willing to consider them. Depending on the terms of the contract, the sellers may also be willing to allow potential buyers to tour the property, though this is less common. If a buyer makes an offer during this time that is higher than the contract that’s already in place, it will be considered a backup and considered as if it were a new offer to the seller.

Because of all the various contingencies that need to be cleared in order for a real estate sale to complete, it’s not uncommon for homes that are under contract to end up falling through before the transaction can finally close. This is why it’s important for both the buyer and seller to work with a real estate agent who understands how to facilitate a smooth closing process.

Are you ready to start your real estate journey? Our team of experienced professionals are ready to help you find your next home! We’ll walk you through the process from start to finish. Contact us today to get started.

 

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