If you’ve been browsing homes online or touring properties, you’ve likely come across the term “under contract.” But what does it actually mean for buyers and sellers? Is the home still available, or is it off the market for good? Let’s break it down.

What Does “Under Contract” Mean?

When a property is listed as under contract, it means that the seller has accepted an offer from a buyer, and both parties have signed a purchase agreement. However, the deal isn’t finalized yet—the home has not officially been sold.

During this stage, several conditions still need to be met before the transaction can close, such as:

• Home inspection – Ensures the property is in acceptable condition.

• Appraisal – Confirms the home’s value for the lender.

• Financing approval – The buyer must secure a mortgage.

• Title search & contingencies – Legal checks and contract conditions must be satisfied.

Until these steps are completed, the sale could still fall through.

Is an “Under Contract” Home Still Available?

The short answer: Maybe.

Some listings allow backup offers. This means that if the current deal falls apart, the seller could accept another buyer’s offer. For buyers, it’s worth asking your real estate agent if backup offers are being considered—you might still have a chance at the home.

Difference Between “Under Contract” and “Pending”

These two terms are often confused, but they represent slightly different stages:

• Under Contract – An offer has been accepted, but contingencies still need to be resolved.

• Pending – Most or all contingencies have been satisfied, and the home is just waiting for closing.

Essentially, “pending” means the deal is further along and less likely to fall through.

Why Do Homes Under Contract Still Fall Through?

It doesn’t happen often, but sales can collapse while under contract. Common reasons include:

• Financing problems (loan denial)

• Major inspection issues

• Low appraisal values

• Title or legal disputes

• Buyer or seller backing out due to unmet contingencies

What Buyers and Sellers Should Know

• Buyers: Don’t immediately rule out a home that’s under contract. Ask your agent if backup offers are allowed. If so, you could be next in line.

• Sellers: Going under contract is a big step, but it’s not a done deal until closing. Keep communication open and be prepared for negotiations after inspection or appraisal.

Seeing a property listed as under contract doesn’t necessarily mean it’s completely off the market—it just means it’s in the process of being sold. Whether you’re buying or selling, understanding this stage of the real estate transaction can help you make informed decisions and avoid surprises.

Matt Witte strives to be the best realtor in North Andover, MA.

Any questions about real estate, reach out to Matt Witte, North Andover Realtor, MA