When Buying a Home What Does under Contract Mean

When you`re on the search for the perfect home and you finally find the one that meets your needs, it`s important to understand the different stages of the home-buying process. One of these important stages is when a home is marked as “under contract.” But what exactly does this mean?

At its most basic level, being under contract means that a seller has accepted a buyer`s offer on a home. This means that the buyer and seller have come to an agreement on the terms of the sale, including the price, contingencies, and closing date. Once this agreement has been reached and both parties have signed a contract, the home is considered “under contract.”

So what does this mean for you as a buyer or seller? For buyers, it means that the home you`ve been eyeing is now off the market. You won`t be able to make an offer on the home, have a home inspection, or negotiate any further terms with the seller. If you`re a seller, being under contract means that you can no longer accept any new offers on the home. You`ll have to wait until the current deal falls through before you can consider other offers.

But just because a home is under contract doesn`t necessarily mean that the sale will go through. There are a number of reasons that a contract could fall through, including issues with the home inspection, financing problems, or issues with the title of the property. These issues are known as contingencies, and their inclusion in the contract allows either party to back out of the deal without penalty if they aren`t satisfied with the outcome.

Another important thing to note is that being under contract isn`t the same as being sold. A home can be under contract for weeks or even months before the sale is finalized and the home officially changes hands. During this time, both the buyer and seller will be working together to satisfy the contingencies outlined in the contract and ensure that the sale proceeds smoothly.

So if you`re in the market for a new home, it`s important to understand what it means when a home is marked as “under contract.” This stage in the home-buying process is an important one, as it signifies that a seller has accepted a buyer`s offer and both parties are moving forward with the sale. Just remember that being under contract doesn`t necessarily mean that the sale is guaranteed, so it`s important to remain vigilant and continue to explore other options until the deal is finalized.