Published on September 6, 2023 | 5 Minute read
When browsing through real estate listings, you might come across the term "under contract" next to a property. This phrase often raises questions about the status of the home and whether it is still available for purchase. It might even deter you from inquiring about the property. But does "under contract" also mean "off market"?
When a property is listed as "under contract," it means that a buyer and a seller have agreed to the terms and conditions of a purchase agreement. This agreement outlines the specifics of the transaction, including the purchase price, closing date, and any contingencies or conditions that must be met for the sale to proceed. Essentially, when a home is under contract, it signifies that the seller has accepted an offer from a potential buyer, and both parties are now legally bound by the terms of the contract.
The answer to this question is a bit nuanced. Although a home under contract is not actively marketed, it is not entirely off the market until the sale is finalized. The listing status is often changed to "Pending" or "Under Contract," which indicates to other potential buyers and real estate agents that the property is spoken for. If a property falls out of the contract, it will return to an active listing status, and interested parties can schedule showings again.
Some properties might include a "Contingent" label to signal that the contract is not yet finalized due to outstanding contingencies. These are the most common:
"Under Contract" is a significant milestone that signifies a buyer and seller have reached an agreement on the sale of a property and are progressing towards closing. While it doesn't mean the home is completely off the market, it does indicate that the property is effectively reserved for the buyer while the necessary steps are taken to complete the transaction. So, don't get too discouraged when you see the words "under contract" next to a listing you really like. Inquire about it; you never know if the deal will fall through.