If you`re in the market to buy or sell a home, you might have come across the phrase „under contract.” So, what does it mean when a listing is under contract?
When a home is listed for sale, interested buyers can make offers on the property. Once an offer is accepted by the seller, both parties enter into a contract to complete the sale. At this point, the listing is considered „under contract.”
Being under contract means that the seller has accepted an offer from a buyer, and both parties have agreed to the terms of the sale. This typically includes the purchase price, closing date, and any contingencies (such as a home inspection or financing) that need to be met before the sale is finalized.
While a listing is under contract, the seller cannot accept any other offers or enter into any other contracts with other potential buyers. This means that if you`re interested in a property that is under contract, you`ll have to wait until the sale is complete or the contract falls through before you can make an offer.
The length of time that a property is under contract can vary. Some contracts have a set closing date, while others are contingent on certain conditions being met (such as the buyer obtaining financing). In some cases, a contract can fall through if either party fails to meet the agreed-upon terms.
If you`re a seller with a property under contract, it`s important to keep the lines of communication open with your buyer. Make sure you`re aware of any contingencies or deadlines in the contract, and be responsive to any requests for information or documents from the buyer`s end.
If you`re a buyer interested in a property that is under contract, you can still express your interest to the seller or their agent. In some cases, contracts fall through, and the property may become available again. Additionally, if you`re working with a real estate agent, they may be able to help you find similar properties that are currently available.
In summary, being under contract means that a property has accepted an offer from a buyer and both parties have agreed to the terms of the sale. The property cannot accept any additional offers during this time. If you`re a buyer or seller, it`s important to be aware of the conditions and deadlines in the contract to ensure a successful sale.