What Is Active under Contract Mean

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What Does “Active Under Contract” Mean in Real Estate?

When searching for homes online, you may come across a listing that says “Active Under Contract.” This can be confusing, especially for first-time homebuyers. It seems like a contradiction, doesn`t it? After all, how can a property be both “active” and “under contract” at the same time?

To understand what “Active Under Contract” means, we need to first define what “under contract” means. In real estate, when a buyer and seller have agreed on the terms of a sale, they enter into a contract. This can also be called “pending” or “in escrow.” Until the sale is finalized and the property changes ownership, the property is considered “under contract.”

So, why is it important to know if a property is under contract? For one, it can give you an idea of how competitive the market is in your area. If homes are selling quickly, you may need to act fast if you see a property you`re interested in. Additionally, if a property is already under contract, you can`t make an offer on it unless the contract falls through.

But what about properties that are “Active Under Contract?” This means that the seller is still accepting backup offers in case the first contract falls through. In some cases, this could happen if the buyer is unable to secure financing or if there are problems with the property that were not initially disclosed. In other cases, the first buyer may simply change their mind and back out of the deal.

If you`re interested in a property that is “Active Under Contract,” you may still be able to make a backup offer. However, keep in mind that the first contract may still go through, so there`s no guarantee that you`ll be able to purchase the property.

In conclusion, “Active Under Contract” means that a property is under contract, but the seller is still accepting backup offers in case the first contract falls through. As a homebuyer, it`s important to understand what this means for your search and to act quickly if you see a property you`re interested in.