When buying a home, you’ll notice a lot of different categories when perusing real estate listings. One status is “under contract.” This term means the purchase process has essentially begun between the seller and a buyer.
It doesn’t necessarily mean the house will be taken off the market. There’s still a chance the deal might fall through, which is why the listing isn’t removed.
When Does a Listing Go Under Contract?
When buyers want to make an offer, there are several steps they will have to take. They need to determine how much they want to offer and, typically, they’ll have to submit a pre-approvement letter. This shows they will have the funds necessary to support that offer. A buyer’s agent will submit an offer letter that includes all of this information.
Even if the seller accepts the offer, the house will still not be “under contract.” The buyer and seller will also have to agree to the contingencies. Once everything is agreed upon, the house goes under contract.
What Happens When a House Is Under Contract?
The house remains under contract until all contingencies are met. For instance, the sale may be contingent on the home inspection. If the inspector finds a problem and a solution can’t be found between the seller and buyer, the buyer might withdraw. The house will no longer be under contract. When this happens, other buyers will be able to make an offer to purchase.
While most houses that are under contract are sold, there are some that go back on the market because the deal fell through. Because of this, keep your eye open for desirable under-contract homes.
For more tips on buying a home, contact us at Randy Lindsay today.