Subscribe to the Zelda Newsletter!

Join for the latest info about Zelda Magazine. We'll let you know when new issues are available and when we are sponsoring new events!

Categories

  • No categories

Recent Posts

What Does It Mean When a House Is Active under Contract

When you`re in the process of buying a home, there are numerous terms and phrases that you might hear that can be confusing. One such term is “active under contract.” If you`re not familiar with real estate jargon, this term can seem confusing or even contradictory. However, there`s no need to worry. In this article, we`ll break down exactly what it means when a house is active under contract.

First of all, it`s important to understand what a contract is in the context of real estate. A contract is a legally binding agreement between a buyer and seller outlining the terms of the sale. Once a buyer and seller have agreed on a price and other key details, they`ll sign a contract that sets out those terms in writing. The contract will also include a closing date, which is the day on which ownership of the home will transfer from the seller to the buyer.

Now, when a house is listed as “active under contract,” it means that a contract has been signed and both the buyer and seller have agreed to the terms of the sale. However, the closing hasn`t yet taken place. During this time, the home is still technically on the market, but the seller is no longer accepting offers from other potential buyers. The listing will remain active until the closing takes place and ownership is transferred to the buyer.

Why would a seller choose to list their home as active under contract instead of simply taking it off the market altogether? There are a few reasons. First, it can help to generate a sense of urgency among other potential buyers. If someone sees that a home they`re interested in is active under contract, they`ll know that they need to act quickly if they want to make an offer. Second, listing a home as active under contract can help to ensure that the deal goes through smoothly. If the buyer encounters any issues with financing or other aspects of the sale, the seller will still have other interested parties who might be willing to step in and purchase the home.

In any case, if you`re interested in a home that`s listed as active under contract, it`s still worth contacting a real estate agent to express your interest. While it`s unlikely that the seller will accept another offer, there`s always a chance that something could fall through with the current buyer, leaving the home back on the market.

In conclusion, when a house is listed as active under contract, it means that a contract has been signed and the terms of the sale have been agreed upon by both the buyer and seller. While the home is technically still on the market, the seller is no longer accepting other offers. This status helps to generate urgency among potential buyers and can also help to ensure that the sale goes through smoothly. If you`re interested in a home that`s active under contract, it`s still worth expressing your interest to a real estate agent in case the deal falls through.

Comments are closed.