As you begin your homebuying search, chances are you’ll see a home listed as “under contract” or “active under contract.” If you find yourself wanting to buy the home, you may be wondering if you can still make an offer on the home that’s listed as “under contract.”
In this Redfin article, we’ll tell you exactly what it means when a home is “under contract” and if you can still make an offer on the property. Whether you’re looking at homes for sale in Milwaukee, WI, or condos in Houston, TX, read on to find out more about under contract homes.
What does under contract mean?
What does it mean when a house is ‘active under contract’? When a home is active under contract it means that a buyer has made an offer on the home and the seller has accepted, but the sale is not yet final. When the transaction is complete, the status of the home will show that it has sold.
While the property is still under contract, all contingencies must be met before the sale is finalized. That may mean the buyer must secure financing, the home inspection still needs to be completed to confirm the property is free of serious defects, or other conditions that still need to be met in order for the sale to be finalized. Real estate contracts outline many conditions that must be met by both the buyer and seller. If either party fails to meet one of these conditions, the contract is breached and one party may back out of the sale.
What’s the difference between under contract vs. pending?
When a property is pending, that means that all of the contingencies are removed, requirements are met, and the home is about to close. Basically, a pending property is much closer to being sold than an under contract property.
Is an under contract house off the market?
If you find the property of your dreams but it is listed as under contract, it doesn’t necessarily mean that you’re out of options since it is still possible that the buyer or seller may fail to meet one of the conditions needed for the sale to be final.
Most properties that are under contract are considered off the market, but the buyer has a specified period of time to fulfill their obligations. During this time, properties continue to be marketed but maintain the active under contract status until the sale is finalized, or the transaction is cancelled.
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Can a seller accept another offer while under contract?
During this time, the seller may be willing to accept backup offers. A backup offer with especially favorable terms, such as a generous offer or waiving certain contingencies. Many things can go wrong during the under contract period and a fair number of homes will go back on the market. By putting in a backup offer, you’ll be positioned as the next buyer in line should the current contract fall through.
What is a backup offer?
A backup offer is when a home seller has accepted an offer from a buyer, but is still accepting offers from other buyers. Sellers state that they are accepting backup offers if they think the current offer may fall through. If you’ve fallen in love with a home that is under contract, you should get in touch with a real estate agent right away to explore your options for making an offer.
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If you are represented by an agent, this is not a solicitation of your business. This article is for informational purposes only, and is not a substitute for professional advice from a medical provider, licensed attorney, financial advisor, or tax professional. Consumers should independently verify any agency or service mentioned will meet their needs. Learn more about our
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Alison is part of the Content Marketing team as a Content Marketing Manager. In her 5 years at Redfin, Alison has written a variety of articles ranging from home design tips to housing affordability. A California-native, Alison currently resides in Seattle where you can find her catching a concert or exploring farmers’ markets. Her dream home is a cottage-style house with a chef’s kitchen and a cozy room to store and play vinyl records.
