If you`ve ever been house hunting, you`ve likely come across the term “under contract” when browsing properties for sale. But what does it really mean when a house for sale is under contract?
In short, when a house is under contract, it means that a buyer has made an offer on the property and the seller has accepted it. However, the deal isn`t yet final as there are still a number of steps that need to be taken before the sale is completed.
During the under contract phase, the buyer typically has a certain amount of time to complete a home inspection and secure financing. If any issues arise during the inspection process, the buyer and seller may negotiate repairs or a reduction in the sale price. The buyer must also secure financing, and if they are unable to do so, the deal may fall through.
Until the sale is finalized, the house is technically still on the market, but most real estate agents will stop showing the property to potential buyers. This is because it can be a waste of time for all parties involved if a new potential buyer falls in love with the property, only to find out it is under contract and they are unable to make an offer.
Once all the necessary steps have been taken and the sale is finalized, the property will be marked as “sold” in the multiple listing service (MLS) database. Until then, it will remain under contract.
So, why is it important to know what it means when a house is under contract? For one, it can save you time and frustration if you`re house hunting and come across a property that is under contract. Additionally, it can help you understand the timeline of the buying and selling process if you are in the market for a new home.
In conclusion, when a house for sale is under contract, it means that a buyer has made an offer on the property and the seller has accepted it, but there are still steps that need to be taken before the sale is finalized. This phase can take anywhere from a few weeks to a few months, and during this time the property is typically no longer shown to potential buyers.