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 you make an offer on a house that is active under contract?
Can I make offers on homes that are listed as 'active under contract'? You can. But sellers can't accept your offer if they've already signed a purchase and sales agreement with other buyers, even if your offer is higher. If the sale doesn't reach closing, though, the sellers can consider your offer.
Why would a home be under contract for so long?
If significant repairs are needed, it can prolong the under-contract period as negotiations continue. Another factor that can impact the length of the under-contract period is the financing contingency.
What does it mean when a house for sale says active under contract?
Active under contract is when a home offer has been accepted but there are still conditions and contingencies that must be met. Pending typically comes after active under contract, when all conditions have been met and the house is nearing closing.
Does under contract mean sold?
The Bottom Line: A Home Under Contract Isn't Quite Sold Yet
A home that's under contract indicates a seller has accepted a buyer's offer to purchase the property. But before the sale of the home can actually close, certain contingencies must first be met. Otherwise, the deal can still fall through.
Is under contract the same as pending?
Hear this out loudPauseKey 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.
My first deal was tiny. A 3-unit multifamily deal. Bought it for just $200k
— The Real Estate God (@TheRealEstateG6) October 28, 2023
I had been researching the market for a few months and was having trouble finding a good property to buy until I noticed a strong supply-demand imbalance in the market (there wasn’t enough supply, which… pic.twitter.com/YONmQZqB8v
What not to do while under contract for a house?
Here are some things to avoid in the run-up to the big day:
- 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
What does it mean when Zillow says under contract?
'Under Contract' is probably the most accurate way to describe a pending or 'contingent' sale. It means the same as the other statuses above; a buyer and seller have agreed to terms and have executed a contract. But, the contract has yet to go to closing.
What is the difference between contingent and under contract?
Once your home is under contract, but some contingencies need to be met, your property is considered contingent. A contingent contract means that some condition hasn't yet been met, and both parties have not agreed to move forward with executing the deal as planned.
FAQ
- 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.
- What does it mean when a house goes from for sale to 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.
