In the world of real estate, it’s common to come across a house that is listed as “for sale” but is also stated to be “under contract”. This can be confusing for potential buyers and sellers who are unfamiliar with the terminology. Understanding what it means when a house is under contract is essential for both parties involved in the transaction.
A house being under contract simply means that a buyer has made an offer to purchase the property, and the seller has accepted that offer. At this stage, the seller and buyer have reached an agreement and have signed a sales agreement. The house is no longer actively available for sale, as the buyer has exclusive rights to proceed with the purchase.
It’s important to note that being under contract does not mean the sale has been finalized. The house is still technically for sale, but the likelihood of another buyer being able to purchase it is very low. The under contract status indicates that the seller has accepted an offer and is legally bound to sell the property to the buyer who made the offer.
Buyers who come across a house that is under contract may wonder if they should still express interest or make an offer. While it’s unlikely that another offer will be entertained, it’s not entirely impossible. In some cases, the initial buyer may back out of the contract for various reasons, creating an opportunity for other interested buyers. However, it’s best to consult with a real estate agent or the seller’s representative to inquire about the status of the contract before proceeding.
Understanding the concept of a house being under contract is crucial when navigating the real estate market. It can save both buyers and sellers from unnecessary confusion or misunderstanding. Therefore, when you encounter a house that is listed as “for sale” and “under contract”, you now have a better understanding of what it means and can proceed accordingly.
References:
- What Does it Mean When a House is For Sale and It’s Under Contract?
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- Maksud Sales Agreement
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- Caltrans Cooperative Agreement Handbook
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