You’ve finally found your dream home, and it’s a great feeling to know you’ve made an offer on the house that’s been accepted by the seller. However, that’s only the beginning of the home-buying process, and there are many more steps before the house goes from being ‘under contract’ to a final sale. Whether you’re buying your first home or your tenth, there are a lot of confusing terms in the real estate world. Among them are “under contract” and “pending sale,” which mean different things to home buyers and sellers.
When a property is marked as “under contract,” it indicates that a buyer has agreed to buy the home and signed a sales contract with the seller. The contract states the price of the home, any additional fees that will be incurred, and other important details of the transaction. It also includes contingencies, which are provisions that must be met before the sale can go through. For example, one common contingency is that the buyer must be able to secure financing for the home. If the buyer is unable to meet this requirement, they may terminate the contract without penalty. Read more https://www.creatingrealestatesolutions.com/we-buy-houses-villas-fl/
Typically, the under contract period lasts for a few weeks. During this time, the property will undergo various inspections and appraisals, as well as mortgage-related processes like a land survey and title checks. These steps help ensure that the home is worth the purchase price and free of any serious issues. It’s also a chance for buyers to cancel the contract if they find problems with the property, though they will likely lose their earnest money.
A home can be “under contract” even if it’s not yet a pending sale, but once the contingencies are met and the closing date set, the listing will be marked as “pending.” This means that the buyer has been approved for a mortgage and the property is being transferred from the seller to the buyer. It’s also a good time to get home insurance and set up utility transfers, as this is when most of these tasks take place.
A common question from buyers is whether a home can be under contract and still accept backup offers. It’s possible, and in some cases, the seller will state that they’re accepting backup offers if they think the current deal might fall through. However, it’s best to talk to your Redfin agent for more information on what it means when a home is under contract. They’ll be able to explain the situation in more detail and help you navigate the often-complicated homebuying process.