If you’re in the process of buying a home, you may have come across the term “under contract.” But what does under contract mean in real estate? Essentially, it means that the buyer and seller have agreed to terms on the sale of the property, and the transaction is now pending.
The under-contract period can last anywhere from a few days to a few weeks, depending on the state in which the property is located. During this time, the buyer will usually complete a home inspection and appraisal, and apply for a mortgage. If everything goes smoothly, the transaction will close and the property will officially change hands. In some cases, the under-contract period may be extended if there are issues with the home or the financing falls through.
Table of Contents
•How To Put A House Under Contract
•Under Contract vs Pending
•Contingent Meaning For House
•Can A House Under Contract Be Sold To Someone Else
•What Happens If Financing Falls Through On A House
•Can You Back Out Of A Real Estate Contract
•Why Should You Sell Your House to Cash Home Buyers
➥Why Should You Consider ASAP CASH Offer
How To Put A House Under Contract?
If you’re interested in putting a home under contract, the first step is to find a real estate agent or cash home buyer. They can help you navigate the process and ensure that everything is done correctly. Once you’ve found a property that you’re interested in, your agent will help you submit an offer to the seller. If they accept your offer, the property will go under contract.
It’s also important to note that you may be asked to put down a deposit when submitting your offer. This is typically 1-3% of the purchase price and is non-refundable if you decide to back out of the deal.
The deposit goes into escrow and is used to prove to the seller that you’re serious about buying their home. The under-contract period is a critical time in the real estate transaction, so it’s important to understand what’s happening. For instance, you may be able to back out of the deal if the home inspection reveals major problems. And also, if the appraised value of the home comes in lower than the purchase price, the buyer may try to renegotiate their offer or walk away from the deal entirely.
Under Contract vs Pending
It’s important to note that under contract and pending are not the same thing. Pending means that the transaction is in the final stages of closing and is just waiting on funding to go through. In most cases, a property is considered pending once the buyer has signed the purchase agreement and submitted it to their lender.
On the other hand, under contract means that the buyer and seller have agreed to terms and the transaction is now pending. If you’re under contract to purchase a home, it’s important to understand your rights and responsibilities.
Contingent Meaning For House
A contingent offer is an agreement between a buyer and seller to move forward with a real estate transaction, provided that certain conditions are met. While contingent offers are common in real estate transactions, it’s important to note that they are not always binding.
Other common contingencies include :
For instance, a buyer may agree to purchase a home contingent upon obtaining funding from their bank or credit union. Or, they may agree to move forward with the deal provided that the home passes a professional inspection. Making an offer contingent upon these factors is often seen as a way to protect yourself as a buyer, in case something goes wrong with the deal.
Can A House Under Contract Be Sold To Someone Else?
Generally speaking, a house under contract can still be sold to someone else. You should also be aware that the seller may continue to show the property to other buyers during this period, in case your deal falls through. In case, there may be certain contingencies in place that give the original buyer the right to match any other offers that come in. For example, if you have a home under contract and another buyer comes in with a higher offer, the seller may give you the opportunity to match that offer before moving forward with the new buyer.
It’s also important to note that homes under contract are not always taken off the market. In some cases, sellers will continue to show the property even after an offer has been accepted. This is typically done in situations where there are multiple offers on the table and the seller wants to see if they can get a better deal. It’s important to remember that even though a property is under contract, anything can still happen until the deal is officially closed.
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What Happens If Financing Falls Through On A House?
If you’re under contract to purchase a home, one of the contingencies is likely that your financing falls through. This means that if you’re not able to obtain funding from your bank or credit union, you can back out of the deal without losing your deposit. In most cases, buyers have a set period of time (usually 10-14 days) to get their financing in order. If they’re not able to do so within that timeframe, they can walk away from the deal without any penalties.
It’s important to note that if you do back out of the deal due to financing issues, the seller is under no obligation to refund your deposit. In fact, they may keep the deposit as compensation for taking the property off the market. However, each situation is different and it’s always best to consult with an experienced real estate attorney before making any decisions.
Can You Back Out Of A Real Estate Contract
If you’re under contract to purchase a home, you may be wondering if you can back out of the deal. The answer is that it depends on the situation. In most cases, buyers are able to back out of a real estate contract if they have a legitimate reason for doing so.
For instance, if the home inspection reveals major problems or if the buyer is unable to obtain financing, they may be able to back out without losing their deposit. However, it’s important to note that each situation is different and you should always consult with an experienced real estate attorney before making any decisions.
Why Should You Sell Your House to Cash Home Buyers?
There are a number of reasons why you might want to sell your house to cash home buyers.
- You can avoid the hassle and expense of traditional home selling. For instance, if you sell your house to cash home buyers, you won’t have to worry about making repairs or dealing with showings.
- You’ll be able to close on the sale much faster than you would if you were selling through a real estate agent.
- You’ll avoid having to pay commissions or other fees.
- You can sell your house as-is, meaning you won’t have to make any repairs before the sale.
- You’ll get cash for your house, which can be helpful if you’re facing foreclosure or if you need to move quickly for any other reason.
Why Should You Consider ASAP CASH Offer?
If you’re considering selling your house, ASAP CASH Offer may be the best option for you. ASAP CASH Offer is a direct buyer of houses, which means that we will buy your house directly from you – no real estate agent needed. We can close on the sale of your house in as little as 7-28 days, and we’ll even pay cash for your house. Contact us at (805)427-8312 today to learn more about how we can help you!