April 18th 2022

As you scroll through the real estate listings, you might spot a few that say the house is “under contract.” But what does “under contract” mean?

In most cases, a property is listed as “under contract” once a buyer has made an offer and the seller has accepted. While that’s a big step, it doesn’t mean the deal is done quite yet.

So if you see a house you love that’s “under contract,” don’t give up quite yet. Here’s how to handle this scenario and maybe even get the house.

What does ‘under contract’ mean?

When a real estate listing is “under contract,” there are still contingencies attached to that offer that must be cleared before closing.  These contingencies often include financing, a home inspection, home appraisal, and sometimes the sale of the buyer’s current home or the seller's need to secure a new home at the same time as the sale.

Since it’s possible for any of these items to fall through along the way, seller’s agents will sometimes take backup offers. In other words, if you want this home for yourself, that could still happen.

If a buyer were to find a home that they absolutely love that is listed under contract with contingencies, it definitely wouldn’t hurt to keep it on your radar.  However, deals rarely fall through and most of the time "under contract" is as good as "sold".  

How good are your odds of a contract falling through? That depends on a number of factors, including the temperature of your local real estate market. The hotter the market, the less likely it is to fall through.  In this seller's market at the Shore, buyers are more eager than ever to do what it takes to complete a sale.

Generally, when a deal does fall through, the home will be updated to an "active" listing.

So how long do you have to wait to find out if you have a shot? Well, it could take a while. It typically takes 30 to 45 days from the date an offer is accepted until the sales contract closes and the sale is complete.

‘Under contract’ vs. ‘sale pending’: What’s the difference?

In some localities, there can be a real difference between the two.  But at the Shore, we don't use "pending" as an official status term.  One distinction that is worth noting is "under contract" vs "under contract/continue to show".

It is uncommon, and is usually the result of a special arrangement between a seller and buyer.  It generally means that although the status reflects a signed contract, the home is still actively taking new offers.  

Bottom Line

You need an agent with the experience and expertise to navigate your Shore home sale or purchase.  Put my 27 years experience to work for you and call or text today!  609-780-1434