In the exciting world of real estate, one term that you may come across is “active under contract.” But what does it actually mean? Well, let me tell you.
When a property is labeled as “active under contract,” it means that an offer has been accepted by the seller, and the buyer and seller are in the process of finalizing the deal. This status is also known as “under contract” or “pending,” indicating that the property is no longer available for new offers but the sale has not yet been fully completed. It’s a critical phase in the home buying process, as it signifies that both parties have reached an agreement and are working towards closing the transaction.
In real estate, “active under contract” means that a property is still listed as active on the market, but there is a signed contract between the buyer and seller. During this period, the property is considered to be under contract and cannot be sold to another party. The sale is pending, awaiting finalization of contingencies and the closing process. It’s important for both buyers and sellers to communicate with their real estate agents to navigate this phase successfully.
When it comes to real estate transactions, there are a plethora of terms and jargon that can be confusing, especially for those who are new to the industry. One such term is “active under contract.” If you’re in the process of buying or selling a property, it’s essential to understand what this term means, as it can greatly impact your real estate journey.
In simple terms, “active under contract” refers to a property listing that is still considered active on the market despite being under contract. It means that a buyer and seller have agreed on the terms and conditions of the sale, and a contract has been signed. However, the sale has not yet been completed, and there may still be contingencies or conditions that need to be fulfilled before the property officially changes hands.
During this active under contract phase, the property is typically marked as “pending” or “under contract” in real estate listings. It indicates to other potential buyers and agents that an offer has been accepted, but the sale is not yet final. This status helps to manage expectations and prevents others from making offers on the property that may disrupt the existing agreement.
Now let’s dive deeper into the different aspects and considerations of active under contract in real estate.
Understanding the significance of the active under contract status can provide valuable insights for buyers, sellers, and other real estate professionals. Here are some reasons why this status is crucial:
One important aspect of active under contract status is the presence of contingencies. Contingencies are conditions or requirements outlined in the purchase agreement that must be met for the sale to proceed. They protect both the buyer and seller and give them the opportunity to renegotiate or back out of the contract if certain conditions are not satisfied.
Common contingencies include:
During the active under contract phase, it’s essential for both parties to diligently address and fulfill these contingencies within the specified timelines. Failure to do so can potentially lead to the termination of the contract.
The active under contract phase can sometimes be a delicate and intricate process. Here are some tips for buyers, sellers, and agents to navigate this stage successfully:
Understanding what “active under contract” means in real estate is vital for anyone involved in buying or selling property. It indicates that a deal is in progress but has not yet reached the final stages of completion. By grasping the significance of this status, you can navigate the process more effectively and ensure a successful transaction.
Whether you’re a buyer, seller, or real estate agent, being knowledgeable about the active under contract phase allows you to make informed decisions, communicate effectively, and manage expectations. Remember to work closely with your real estate professionals and fulfill your obligations to ensure a smooth and successful closing.
For more information on the real estate contract process, refer to this article on Realtor.com that dives deeper into what happens after you sign a real estate contract.
In real estate, the term “active under contract” is commonly used to describe a property that is still listed for sale but has an accepted offer from a buyer. This means that although the property is under contract, the seller is still accepting backup offers in case the current deal falls through. Here are some frequently asked questions about what “active under contract” means in real estate.
When a property is listed as “active under contract,” it means that the seller has accepted an offer from a buyer, but the sale is not yet finalized. The property is still actively marketed and can be shown to potential buyers. The status indicates that the seller is open to receiving backup offers.
This status is commonly used in real estate listings to inform both buyers and sellers that there is an accepted offer on the property, but it is not considered sold until all contingencies are met, and the closing process is completed.
When a property is marked as “active under contract,” it means that the seller has accepted an offer from a buyer, and they are in the process of completing all necessary steps to close the sale. These steps may include inspections, appraisals, financing arrangements, and other contingencies outlined in the contract.
During this time, the property remains accessible for showings and the seller may continue to accept backup offers in case the current deal falls through. If all goes smoothly, the sale will proceed to closing, and the property will be marked as “sold.”
Yes, you can still make an offer on a property that is “active under contract.” In real estate, backup offers are often accepted by sellers to protect their interests in case the current deal falls through. However, it’s important to note that if your offer is accepted as a backup offer, it will only go into effect if the primary offer falls through.
Making a backup offer can be a strategic move for buyers who are interested in a property but want to have a chance at purchasing it if the initial offer fails. It is advisable to consult with your real estate agent to understand the process and ensure that your backup offer is presented correctly.
The duration that a property stays “active under contract” can vary depending on various factors, including the terms outlined in the contract, the type of financing involved, and any negotiated contingencies. It is common for a property to remain in this status for a few weeks to a couple of months.
During this time, the buyer is working to satisfy any contingencies, such as securing financing, completing inspections, or resolving appraisal issues. Once all contingencies are met, and the closing process is completed, the property will be considered sold, and the status will change to “sold.”
Accepting backup offers on a property can have several advantages for sellers. Firstly, backup offers provide a safety net in case the current deal falls through. This ensures that sellers have a backup option readily available and can proceed with another buyer without having to start the marketing process from scratch.
Secondly, backup offers can create a sense of urgency among buyers. When potential buyers know that there are backup offers in place, they may be more motivated to move forward quickly with their purchase to secure the property. This can potentially lead to a faster closing process and reduces the chances of the property being on the market for an extended period.
When a property is listed as “active under contract” in real estate, it means that the seller has accepted an offer from a buyer but the sale has not yet been finalized.
During this phase, the buyer typically has a period of time to perform inspections, secure financing, and fulfill any contingencies outlined in the contract. If all conditions are met, the property will move from “active under contract” to “pending” or “under contract.” However, if the buyer is unable to meet the requirements, the property may become available again for other buyers.