As you begin your home buying search, you’ll likely see a home listed as “under contract” or “under contract.” If you find yourself wanting to buy that house, you may wonder if you still can make an offer at home that is listed as “under contract.”
In this Redfin article, we’ll tell you exactly what it means when a home is “under contract” and when you can still make an offer on the property. That you are watching – Homes for Sale in Milwaukee, WIor Homes in Houston, TXread on to find out more about contract housing.
What does under contract mean in real estate?
What does it mean when a house is “under contract”? If the home is under contract, it means that the buyer has made an offer on the home and the seller has accepted, but contingencies still need to be met before the sale closes. Once the transaction is complete, the status of the home will show that it has been sold.
While the property is still under contract, all contingencies must be met before the sale can be finalized. That may mean the buyer has to secure financing, i home inspection it still needs to be completed to ensure that the property has no major problems, or other conditions that still need to be met for the sale to be completed.
Real estate contracts describe several conditions that must be met by both the buyer and the seller. If either party fails to meet one of these conditions, the contract may be terminated depending on the conditions specified in the agreement.
What is the difference between a contract and a pending one?
Where the property is waiting for youthat means all contingencies are cleared, requirements are met, and the home is about to close. Basically, a pending property is much closer to being sold than a property under contract.
- Under the contract: Contingencies remain, supporting offers may be accepted, and the foreclosure process continues.
- Pending: All contingencies are met, it will probably not accept back-up donations, and the closing date is approaching.
Is the house under contract not on the market?
If you find your dream property, but it’s listed as under contract, it doesn’t mean you’re out of options. It is still possible that the buyer or seller may fail to meet one of the conditions required for the sale to be final.
Most properties that are under contract are considered off the market, but the buyer has a set amount of time to fulfill their obligations. During this time, the properties continue to be sold but retain the status of “working under contract” until the sale is completed or the transaction is canceled.
Can the seller accept another offer while under contract?
During this time, the seller may be willing to accept a backup offer. A backup offer with particularly favorable terms, such as a higher purchase price or fewer contingencies, has a better chance of standing out to the seller.
Many things can go wrong during the time under contract, and a fair number of homes will return to the market. A December 2025 Redfin Research showed about 16.3% of home purchase agreements were cancelled. By placing a reserve offer, you will be placed as the next buyer in line if the current contract falls through.
What is a backup offer?
A support offering an offer sent after the seller has already accepted one, which puts you next in line if the first deal fails. Sellers often say they accept backup offers if they think the current offer might be successful. If you have fallen in love with a house with a contract, you should contact real estate agent immediately to explore your donation options.
Frequently Asked Questions about contract homes
What conditions may need to be met while in contract?
There are several contingencies that can cause the agreement to fail if not met within the time frame under the contract. The most common include:
- Financial status: Also called a “mortgage emergency,” this gives the buyer the option to back out of the sale if they can’t get approved for a mortgage.
- Emergency home inspection: It allows the buyer to back out of the contract if a home inspection reveals more damage than expected.
- Emergency home inspection: This contingency allows the buyer to back out if the home’s appraisal is lower than expected.
- Home sales status: A buyer’s offer may depend on the sale of their current home. If they can’t sell the home at a certain time, they can back out of the current agreement.
What are the main reasons for selling a home?
Home inspection problems, financial problems, and appraisals come down are the main reasons home sales may fall. Financing and appraisals are often linked, as a low appraisal may cause the mortgage lender to reject the application, as the lender does not want to lend more money than the home is worth.
How long is a house typically under contract?
It is common for a home to be under contract for 30 to 60 days, although this can vary based on financing. For example, a cash offer can be under a contract for only 15 days.
What happens when a home is under contract?
There are five important steps that take place before a home can be sold.
- To accept the offer: Both parties will sign a home purchase agreement, and the buyer will put down a deposit hard currency, a security deposit of approximately 1 to 3% of the purchase price.
- Emergency period/closure process begins: During this time, there will be a home inspection, the buyer will apply for a mortgage, and the closing process will begin.
- Appraisal and mortgage approval: The lender will request an appraisal to determine the value of the home. As long as the appraisal is not below the offer price, the loan will likely be cleared.
- Last walk: The buyer will take a final walk through the home to confirm the condition of the home and check that any agreed upon repairs have been completed.
- Closing date: The buyer will transfer the funds, sign the papers, and the home will be officially sold.
Is the home under contract for sale?
No, the house under contract has not been sold yet. It means that the offer has been accepted, but contingencies need to be met before the home can be sold. Once the closing date has passed, the home is now “for sale.”
