what does under contract mean on zillow

jomslae

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15-04-2025

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Meta Description: Confused by Zillow's "Under Contract" status? This guide explains what it means, the process involved, and what it implies for potential buyers. Learn about contingencies, timelines, and how to navigate this crucial stage of the real estate process. Discover the difference between "Under Contract" and "Pending," and what to expect next.

H2: Understanding the "Under Contract" Status on Zillow

When you see a property listed as "Under Contract" on Zillow, it signifies that a buyer and seller have reached a binding agreement. This doesn't mean the deal is final, but it's a significant step towards closing. The property is essentially off the market, pending the fulfillment of certain conditions. It's a crucial stage marking substantial progress in the sale.

H2: What Happens After "Under Contract"? The Contingencies

The "Under Contract" period isn't a simple waiting game. Several contingencies—conditions that must be met before the sale can finalize—are typically included in the purchase agreement. These can include:

• Financing Contingency: The buyer must secure a mortgage loan. If they fail to do so, the deal can fall through.
• Appraisal Contingency: The property must appraise for at least the agreed-upon purchase price. A low appraisal can lead to renegotiations or deal termination.
• Inspection Contingency: A professional inspection of the property is conducted. The buyer can request repairs or back out if significant issues are found.
• Title Contingency: This ensures that the seller has a clear title to the property and no undisclosed liens or claims.

These contingencies provide crucial protections for both buyers and sellers. They highlight the importance of due diligence and careful contract review.

H2: How Long Does a Property Stay "Under Contract"?

The duration a property remains "Under Contract" varies significantly depending on several factors. These include:

• Contingency timelines: The purchase agreement will specify deadlines for fulfilling each contingency.
• Negotiation complexities: Unexpected issues might arise, necessitating further negotiations.
• Market conditions: A hot market might speed things up, while a slow market might prolong the process.

Generally, the entire process, from "Under Contract" to closing, can range from a few weeks to several months. However, typical timelines often fall within 30-60 days for a straightforward transaction.

H2: "Under Contract" vs. "Pending": What's the Difference?

While often used interchangeably, "Under Contract" and "Pending" have subtle distinctions.

• Under Contract: Signifies a signed purchase agreement is in place. Contingencies haven't necessarily been met yet.
• Pending: Usually implies the major contingencies have been satisfied, and the deal is nearing completion. The timeline is significantly closer to closing.

Zillow might use either term or even both throughout the process. The specific terminology can vary by the listing agent.

H2: Can I Still Make an Offer on an "Under Contract" Property?

Technically, yes, you can sometimes make an offer. However, this is highly unlikely to be successful. The seller is already contractually obligated to another buyer. They may only consider a backup offer if the primary deal falls through, which is uncommon.

H2: What to Do if You're Interested in an "Under Contract" Property

If you're interested in a property listed as "Under Contract," your best course of action is to:

• Contact the listing agent: Inquire about the status of the sale and the possibility of a backup offer.
• Monitor Zillow: Keep an eye on the listing to see if the status changes.
• Start your property search anew: Focus your energy on properties actively available on the market.

H2: Key Takeaways

• "Under Contract" on Zillow means a purchase agreement exists, but the sale isn't final.
• Several contingencies need fulfillment before closing.
• The timeline varies but can be from several weeks to months.
• Making an offer on an "Under Contract" property is typically unsuccessful.

Understanding the "Under Contract" status is vital for both buyers and sellers navigating the real estate market. It's a significant step but not a guarantee of a completed sale. This understanding helps manage expectations and make informed decisions throughout the process. Remember, if you have specific questions, consulting with a real estate agent is always recommended.