If you`ve ever been browsing online real estate listings, you`ve probably seen the term „active under contract” or „pending” next to a property. But what does it actually mean when a house is listed as active under contract?
First, let`s define what a contract is in the real estate world. When a buyer and seller agree on the terms of a sale, they enter into a contract. This contract outlines the agreed-upon price, any contingencies (such as financing or home inspections), and the closing date. Once both parties have signed the contract, the property is considered „under contract.”
So, „active under contract” means that the property is still technically available for sale, but there`s already a contract in place with a buyer. The current buyer has made an offer that the seller has accepted, and they`re in the process of fulfilling any contingencies and getting ready for closing. Until the sale is complete, the property will remain active under contract.
It`s important to note that just because a property is listed as active under contract doesn`t mean that the sale is guaranteed to go through. Deals can fall through for a variety of reasons, such as financing falling through or issues found during a home inspection. In some cases, a property may go back on the market if the current sale falls through.
So why might a seller keep a property listed as active under contract instead of taking it off the market entirely? One reason is that it keeps the property visible to potential backup buyers. If the current sale falls through, the seller may be able to quickly move on to another interested buyer without having to relist the property from scratch.
Overall, active under contract means that there`s already an accepted offer on the property, but the sale isn`t yet complete. Keep in mind that deals can fall through and the property may go back on the market, but until then, it`s considered under contract.