Real Estate Terms - "Under Contract"

If you have ever shopped for a new home, I am sure you have called about a house and have been told it is "under contract" or you've driven by a house with a "pending" sign out front.  So what does that mean, anyway?

Under Contract
A potential buyer made and offer and all parties have signed the Purchase and Sale Agreement on a property, but a successful closing is still contingent upon financing, inspections, or other conditions.

Can a property still be shown when it is under contract?

That's up to the seller.  If the seller agrees the property can still be viewed and backup offers may be submitted.  A lot of sellers chose not to continue showings after they accept an offer.

Can you make an offer on a property that is under contract? 

You can submit a back-up offer but in most cases, even if the seller is interested in your offer, the first buyer would have to back out for you to be able to successfully purchase the property.

Is the sale a sure thing if a property is under contract? 

No sale is a sure thing until all papers are signed at the closing table.  Things can always change or go awry so if there is a property that interests you and it is under contract, it's a good idea to keep an eye out for it to come back on the market.

Do you have questions about real estate terms or transactions?  Give us a call at 784-3800 or leave a comment below!