Does under contract mean off the market?
Real estate experts share the details.
That dream house youve been pining for had itslisting status changed to under contract.
Credit: Delmaine Donson / Getty Images
So, what does it mean when a home is under contract?
While it might seem like your goal of owning that property is over, there could still be hope.
What Does It Mean When a Home Is Under Contract?
Earnest money is usually deposited within 48 hours of the contracts acceptance, and the amount varies by state.
In Arizona, where Rizzi works, its typically 2 to 3% of the homes sale price.
That amount is credited toward the buyers down payment at closing.
Earnest money can also be forfeited if a buyer backs out too far along in the process.
What Happens When a House Is Under Contract?
There are lots of boxes to check before a home sale is final.
As the buyer, that means scheduling inspections and getting your financing buttoned up.
Review disclosures for any red flags.
Exterior elements are also evaluated, including the roof, siding, windows, deck, and foundation.
Major appliances such as the refrigerator, oven, and dishwasher are tested as well.
Depending on the inspection results, the buyer may ask for a price adjustment for any repairs needed.
Buyer: Secure Financing
You’ll want to get on top of your financing.
Be patient and do not make any large purchases via credit of any pop in, he says.
Doing so can impact your financing options.
Barr also points out this is the point at which youre scheduling movers and packing.
Its also when Barr notes youre likely getting anxious.
Rizzi says seeing homes under contract can provide valuable information about the features and amenities popular in your area.
In the meantime, the seller could entertain backup offers.
