When browsing through real estate listings, you may often come across the term "house for sale under contract." This phrase signifies an important stage in the home buying process, indicating that a seller has accepted an offer from a potential buyer. In this article, we will delve into what exactly "house for sale under contract" means, how it affects both buyers and sellers, and the implications for the US real estate market.
What Does "House for Sale Under Contract" Mean? When a house is listed as being "under contract," it means that the seller has accepted an offer from a buyer, and both parties have signed a legally binding contract. Essentially, the property is no longer actively available for sale, as it is in the process of being transferred to the buyer. However, it is crucial to understand that the sale is not yet finalized, and certain conditions must be met before the transaction can be completed.
The Home Buying Process Under Contract: Once a house is under contract, the buyer typically has a specified timeframe to complete various due diligence activities. This includes conducting inspections, obtaining financing, and reviewing the property's title history, among other factors. The buyer may also negotiate repairs or concessions
Does under contract mean a house is sold?
Can you make an offer on a house that is active under contract?
Why would a home be under contract for so long?
What does it mean when Zillow says under contract?
What is difference between pending and under contract?
There’s a local real-estate radio show here in Florida - and they just said that the average time it takes a house to be put under contract, that’s for sale, is now 12-hours.— Catturd ™ (@catturd2) May 8, 2021
What not to do while under contract for a house?
- Don't Mess with Your Income-to-Debt Ratio. The ratio of your monthly income to your monthly debts is one of the main factors the lender considered when qualifying you.
- Don't disappear.
- Don't change jobs.
- Don't open new credit cards.
- Don't be late.
Frequently Asked Questions
Does under contract mean sold?
What comes first pending sale or under contract?
- Why does a house for sale say under contract?
- Key Takeaways. “Under contract” means the seller has accepted an offer, but there are still conditions to clear before closing. “Active under contract” means the seller is welcoming backup offers. “Pending” means the home is under contract, and all conditions have been met for the deal to close.
- Can a seller accept other offers while under contract?
- While laws vary by state, in general, up until that contract is signed by both parties—even after counteroffers have been sent out—all new offers can be considered and accepted. Once both parties have signed it, however, the seller is pretty much locked into the deal.