{"id":39824,"date":"2024-01-03T08:52:05","date_gmt":"2024-01-03T16:52:05","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=39824"},"modified":"2025-02-03T06:59:57","modified_gmt":"2025-02-03T14:59:57","slug":"buyer-under-contract-meaning","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-under-contract-meaning\/","title":{"rendered":"What Does \u2018Under Contract\u2019 Mean on a Home Listing?"},"content":{"rendered":"

Sometimes you come across a home for sale that checks off every box on your list, but the listing status says that it\u2019s \u201cunder contract\u201d or \u201csale pending.\u201d Crestfallen, you move on and hope you\u2019ll find an equally amazing home. But what does \u201cunder contract\u201d mean in real estate? Can you still make an offer on a home that\u2019s \u201cunder contract\u201d?<\/p>\n

In this post, we\u2019ll explain the \u201cunder contract\u201d listing status tag. We\u2019ll also share expert insights on how this tag and others might impact your homebuying plans.<\/p>\n\n\n\n\n\n

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What does \u2018under contract\u2019 mean?<\/h2>\n

\u201c\u2018Under contract\u2019 is more or less a meeting of the minds,\u201d says Julie H. Kaczor<\/a>, a top-selling agent from Illinois with 30 years of experience. \u201cIt means the buyer and seller have agreed to the terms of the contract, such as the price, the closing date, the personal property, the earnest money, tax preparation, and contingencies.\u201d<\/p>\n

It sounds pretty straightforward, right? But Kaczor explains that while \u201cunder contract\u201d indicates that the seller has accepted an offer from a buyer, the deal is not yet final. In most cases, there are contingencies<\/a> in the buyer\u2019s offer that need to be cleared before the transaction is moved to the more solid \u201csale pending\u201d status.<\/p>\n

What contingencies might be attached to \u2018under contract\u2019 listings?<\/h3>\n

Oriana Shea<\/a>, a top-rated agent in California who has been helping homebuyers for 26 years, says that, depending on local multiple list service<\/a> (MLS) rules and where the property is located, a listing might actually be tagged as \u201ccontingent\u201d rather than under contract. \u201cBoth indicate that the buyer and seller have come to a ratified agreement,\u201d she explains.<\/p>\n

To fully understand what \u201cunder contract\u201d means, let\u2019s take a look at some of the contingencies that might be attached to such a listing.<\/p>\n

There are four common types of real estate contract contingencies. After you open escrow and the buyer submits a good faith earnest money<\/a> deposit, some or all of the following contingencies may need to be addressed:<\/p>\n