Understanding Active Under Contract and Its Importance in Real Estate
Learn what active under contract means and why it matters for buyers and sellers.
Austin Beverigde
Tennessee
, Goliath Teammate
When navigating the real estate market, you may come across the term "active under contract." This phrase can be confusing for buyers and sellers alike. Understanding what it means can help you make informed decisions in your real estate journey.
What Does Active Under Contract Mean?
"Active under contract" refers to a property that has received an accepted offer but is still listed as active in the market. This status indicates that while the seller has agreed to terms with a buyer, the sale has not yet been finalized. The property remains available for backup offers, which can be crucial in a competitive market.
Why Does It Matter?
Understanding the "active under contract" status is essential for both buyers and sellers:
For Buyers: Knowing a property is active under contract helps you gauge competition. If you’re interested in a home, you might want to submit a backup offer in case the current deal falls through.
For Sellers: This status allows you to keep your property visible to potential buyers, increasing your chances of receiving backup offers in case the initial deal doesn’t close.
How It Works in Practice
Let’s consider an example. Imagine you find your dream home listed as active under contract. You love the property but know it’s not officially sold yet. You can approach your agent to discuss making a backup offer, which could put you in a favorable position if the first buyer backs out.
Steps to Take as a Buyer
Research the property’s history and why it’s active under contract.
Consult with your real estate agent about making a backup offer.
Stay informed about the status of the property until it officially closes.
Common Misunderstandings
Many buyers mistakenly believe that a property listed as active under contract is no longer available. This misconception can lead to missed opportunities. Always verify the status with your real estate agent.
Conclusion
Understanding the term "active under contract" is vital for anyone involved in real estate transactions. Whether you are a buyer looking for your next home or a seller wanting to maximize your options, being informed can make all the difference. For more insights on navigating the real estate market, check out Goliath Data.
