When buying or selling a home, you may come across the term “listing under contract.” However, this term can be confusing for those who are not familiar with the real estate industry. In this article, we will define what listing under contract means and explain the implications of this status.

What is listing under contract?

Listing under contract is a status given to a property that is in the process of being sold. It means that the seller has accepted an offer from a buyer, and both parties have signed a contract agreeing to the sale. This contract outlines the terms and conditions of the sale, including the sale price, closing date, and any contingencies.

Once a property is listed under contract, it is no longer available for sale. The seller cannot accept any new offers, and the listing may be removed from public view. The listing will remain under contract until the sale is finalized, either by completing the sale or terminating the contract.

Implications of listing under contract

For the seller, listing under contract means that they have found a buyer and agreed to the terms of the sale. However, the sale is not yet complete, and there are still several steps that need to be taken before the property officially changes hands. The seller must still satisfy any contingencies outlined in the contract, such as home inspections or financing requirements. If the buyer or seller fails to meet these conditions, the contract may be terminated.

For the buyer, listing under contract means that they have successfully negotiated with the seller and had their offer accepted. However, they are not yet the official owners of the property. The buyer must still complete any contingencies, such as obtaining financing or conducting a home inspection, before the sale can be finalized. If the buyer fails to meet these conditions, the contract may be terminated.

Listing under contract can also affect the real estate market. When a property is listed under contract, it is no longer available to potential buyers. This can create a sense of urgency for other buyers who are still searching for a property, as they may fear missing out on a similar opportunity.

Conclusion

Listing under contract means that a property is in the process of being sold. Both the buyer and seller have agreed to the terms of the sale, but the sale is not yet complete. There are still contingencies that must be satisfied before the sale can be finalized, and the property is no longer available for sale. Understanding this term is essential for anyone involved in the real estate industry, whether buying or selling a property.