Buying or selling a home can feel like a maze. You see a listing change to under contract and wonder what comes next. In this blog post, we will answer the question what does under contract mean and what you can still do as a buyer or seller. Tons of people wonder about the same thing every day.
Redhead Home Properties can guide your move with clear steps and fast updates.
Under contract means that a seller has accepted a buyer’s offer, and both have signed a purchase agreement. The home is not sold yet. The deal still needs steps like inspection, appraisal, and loan approval. Many markets allow backup offers during this stage. That is why buyers still watch these homes.
There are also people who have the same questions such as, “What does under contract mean in real estate?’ or ‘What does it mean when a house is under contract?’ All these questions are the same, the only difference being the wording of the questions. It means that there is an agreement which has been signed, and it contains conditions that must be fulfilled before closing.
Many buyers ask about pending vs under contract. These two labels sound close, yet they signal different things in many MLS systems.
In Bright MLS and a lender guide, the term pending is typically explained as a situation that changes after showings end. However, under contract is a status that can still enable other buyers to show interest.
Certain MLS feeds utilize active under contract. The status indicates that the owner has accepted an offer, but there is no change still showing or accepting backup offers. Bright MLS clarifies that the listings that are active under contract are the ones where there is a signed agreement but still allow backup offers.
Chase Mortgage also gives a very straight view. Active under contract signifies that an offer is accepted and that conditions are still open. Pending comes after when conditions are fulfilled, and the closing is almost done. In case you spot a home ad under contract with the word active, you may still go for a tour and submit a backup offer.
Here is the usual path from offer to keys. Time can shift by state and lender, yet the flow stays the same.
Contingencies are conditions in the contract. They set rules for what must happen, so the deal moves ahead.
Under contract means these items are still open unless waived. Once met, the deal can flip to pending.
Escrow holds money and papers with a neutral party while the deal moves. The consumer bureau describes it in simple words. “An escrow account is set up by your lender to pay certain property related expenses.”
Regulation pages explain that escrow rules help keep tax and insurance paid on time. That protects both the buyer and the lender over the life of the loan.
Title search finds any encumbrances and verifies ownership. An appraisal confirms the fair value to the lender. A survey verifies the condition of the building and the installations. If any of these uncover issues, the seller may have to provide repairs, give credits, or the price might get adjusted. This is the reason why when a property is said to be under contract, it is often a time when the buyer and the seller carry out various checks and make changes.
Yes, in many areas. In case the house actively under contract is shown, it means that the seller is accepting backup offers in case the first buyer solves the requisites and the process continues. That backup position can be beneficial if the first buyer is not able to solve a step. Lots of buyers get this only after they have experienced the situation. You can arrange it more effectively.
Maintain a good credit history. Avoid taking out new loans. Communicate with the lender and title quickly. Schedule the inspection immediately after the listing is active. Request only those repairs that are related to safety, structure, or major systems. In case the appraisal is lower than expected, discuss a price reduction, credits, or a gap plan with your agent and lender.
If you are shopping for backup offers, watch active under contract homes and ask your agent to submit a clean and simple backup. It costs nothing to be next in line in many places. That is smart in a year with higher cancel rates.
Worried about what does under contract mean? It means a real deal is on paper, yet the finish line is not reached. Steps remain. Timers run. Some deals will not close. Smart buyers stay ready with backups. Smart sellers keep showings open when allowed. With the right plan, both sides can move from under contract to closed with less stress.
Need steady help from offer to keys, reach Redhead Home Properties.
Yes, with a backup offer. If the first buyer fails, you’re up.
Typically, 30 to 60 days, depending on loans and checks.
It’s when a home is under contract, but the seller wants backup offers.
Money issues, bad inspections, or just nerves can kill the deal.
Yes, backup offers. But they can’t ditch the first buyer without a reason.
Loans, inspections, and appraisals top the list.
Ask your agent to ping the seller’s agent for updates.
Pending, once all “ifs” are cleared. Then it’s sold.
