When browsing through online real estate listings, you may come across the phrase “under contract” on Zillow. This term can leave many potential homebuyers feeling confused and uncertain about what exactly it means. In this article, we`ll break down exactly what it means when a home is under contract on Zillow.
What Does Under Contract Mean?
When a home is listed as under contract on Zillow, it means that a buyer has made an offer on the property and the seller has accepted it. However, the sale hasn`t been completed yet, as there are still a few steps that need to be taken before the sale can be finalized.
The process of a home being under contract typically involves a few key steps:
1. Offer and Acceptance: The first step is when the buyer makes an offer on the property and the seller accepts it. This offer can include conditions, such as a home inspection, financing, or appraisal contingency.
2. Contingency Period: Once the offer has been accepted, the buyer and seller enter into a contingency period. During this time, the buyer has the opportunity to conduct a home inspection, get financing, and satisfy any other contingencies that were outlined in the offer.
3. Closing: If everything goes smoothly during the contingency period, the sale can proceed to closing. This is when the final paperwork is signed, and the ownership of the property is transferred from the seller to the buyer.
Why is a Home Listed as Under Contract on Zillow?
Zillow lists homes as under contract because they are in the process of being sold. However, it`s important to note that a home being under contract doesn`t necessarily mean the sale will go through. There are several reasons why a sale may fall through during the contingency period, such as issues with financing or problems discovered during the home inspection.
What Should Homebuyers Do When They See a Home Listed as Under Contract?
If you`re a homebuyer and you see a home listed as under contract on Zillow, you still have a few options. First, you can still make an offer on the home, in case the sale falls through. Your offer will be considered a backup offer, and if the first sale falls through, you may be next in line to purchase the home.
Alternatively, you can continue your search for a home that isn`t under contract. While it can be tempting to pursue a home that`s already under contract, it`s important to keep in mind that the sale may not go through, and you could end up wasting time and resources.
While it can be confusing to see a home listed as under contract on Zillow, it simply means that a sale is in progress. If you`re interested in a home that`s under contract, you can still make an offer or continue your search for a different property. Understanding what under contract means can help you make informed decisions and navigate the home buying process with confidence.