If you are in the market for a new home, you may have come across the phrase “under contract” while searching for homes for sale. But what does it mean for a home to be under contract?
When a home is listed for sale, potential buyers can make an offer to purchase the property. If the seller accepts the offer, the home is considered to be “under contract.” This means that the buyer and seller have agreed to the terms of the sale, and the buyer has typically provided a deposit (or “earnest money”) to show that they are serious about purchasing the home.
During the time that a home is under contract, the seller cannot accept any other offers. This period of time can last anywhere from a few days to several weeks, depending on the terms of the contract. During this time, the buyer and seller will work to finalize the details of the sale, such as the purchase price, closing date, and any contingencies (such as a home inspection or financing).
If everything goes smoothly during the under contract period, the sale will typically proceed to closing. At closing, the buyer will provide the remaining funds for the purchase of the home, and the seller will transfer ownership. Once the sale is complete, the home is no longer considered to be “under contract.”
For buyers, seeing a home listed as “under contract” can be frustrating, as it means they cannot make an offer on the property. However, it`s important to remember that contracts can fall through for a variety of reasons, such as issues with financing or problems discovered during a home inspection. In these cases, the home may become available for sale again.
If you are interested in a home that is currently under contract, it`s always a good idea to keep an eye on the listing and talk to your real estate agent about your options. You may be able to submit a “backup offer” in case the current contract falls through, or you may need to look for other homes that meet your needs.
In conclusion, understanding what it means for a home to be under contract can help you navigate the home buying process with confidence. While it may be frustrating to see a home you love under contract, remember that there are always other options available. With the help of a knowledgeable real estate agent, you can find the home of your dreams.