When selling a house, it`s common to see the term « active under contract » listed on a property`s status. This phrase can be confusing for both buyers and sellers, but it`s an important concept to understand in the real estate industry. So, what does « active under contract » mean when selling a house?

In simple terms, « active under contract » means that a property is currently under contract with a buyer, but the sale has not yet been finalized. The property is still available for showings and offers, but the seller has already accepted an offer and is waiting for the closing process to be completed.

During the active under contract period, the buyer usually has a specified amount of time to complete any necessary inspections and paperwork. This period is commonly known as the « due diligence period. » If the buyer discovers any issues during this period, they may be able to renegotiate the terms of the sale or even back out of the contract entirely.

It`s important to note that while a property is active under contract, it is still possible for other potential buyers to make an offer. These offers, known as « backup offers, » will only be considered if the current contract falls through for any reason.

The active under contract period can vary depending on the terms of the contract and the state where the property is located. In some states, the period may only last a few days, while in others, it may last several weeks.

While a property is active under contract, it will still be listed on real estate websites as « active. » This can be confusing for potential buyers who are interested in making an offer, as they may not realize that the property is already under contract. However, it`s important for sellers to keep the property listed as active until the sale is officially closed to ensure that backup offers are still considered.

In summary, « active under contract » means that a property is currently under contract with a buyer, but the sale has not yet been finalized. During this period, the buyer has time to complete any necessary inspections and paperwork. The active under contract period can vary depending on the terms of the contract and the state where the property is located. While a property is active under contract, it will still be listed as « active » on real estate websites, but backup offers will be considered if the current contract falls through.