What does under contract mean

The hotter the market, the less likely it is to fall through. However, Ramirez cautions buyers not to get their hopes up too high when it comes to putting in offers on properties that are already under contract.

So how long do you have to wait to find out if you have a shot? Well, it could take a while. Can you make an offer on a house that is under contract?

When a contract falls through can subsequent buyers can use this as leverage? Advertiser disclosure. I don't want rewards Continue as guest. I want rewards Sign up or Log in. Track your credit score for free Join more than 36, Australians and get your score today. Protect yourself from identity fraud Monitor your open accounts and repayments. Avoid a nasty surprise Get notified when your credit score changes. Always with you Check online or download the app.

Get your free score. More info. Get cashback at your favourite shops Join thousands of Aussies already using Kickback. There are various reasons that a home under contract could end up not selling to the person who made the first accepted offer. There are several contingencies that may or may not have to be met. In the vast majority of cases, people are buying a home with a mortgage. Because of this, they have to qualify for their financing and if their financial situation has changed since they were approved with a budget to shop for a home, they can be denied before closing.

You can also have an appraisal come in low and not be able to reach a deal as a result. As mentioned previously, if there are specific issues enumerated in the contract that let a person get out of the contract based on the home inspection, that would be another reason for a deal to fall through. Finally, for the purposes of affordability, people might make the sale of their current home contingent on the sale of their previous one. An overwhelming majority of home sales are completed within 4 months.

It is still possible for a deal in this situation to fall through, usually due to a home inspection or financing issues. However, it is much less common. Some real estate agents may not be willing to accept offers on homes where a sale is pending. Still, there is no harm in asking, as there is no legal barrier to making an offer on a house until the sale is final.

If you would like more information on what different listing statuses mean, take a look at our Real Estate Glossary entry on real estate listing statuses!