Home Buying in Lovell>Question Details

Mld, Home Buyer in Lovell, ME

We are interest in a house listed as under contract. what does under contract mean? How long before we know if sale is going forward?

Asked by Mld, Lovell, ME Sun Mar 13, 2011

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Hello

Under Contract means that an offer has been accepted on the property subject to whatever contingencies the buyer has asked for such as inspections, financing, needing to sell a house etc. Most sales take 45-60 days to close.

If you are truly interested you can submit a "backup offer" on the property.

If the current offer is subject to the buyers selling a home, the property you are interested in may have a "kick out" clause which means when you submit your offer and if the sellers want to accept your offer, they will give the current offer notice that they must go forward with the sale or get out of the way so they can accept your offer.

Either way it requires just a little more research from your buyer agent asto the status of the property. If you are not represented, I suggest you use a buyer agent to pursue your questions.

David Roberts - Weichert Realtors-Waterglen Group
serving Greater Portland and The Sebago Lakes Region
you
0 votes Thank Flag Link Sat Mar 26, 2011
Under Contract means that an offer has been made on a property and the seller has agreed to the offer. There are typically several contingencies that need to be taken care of before the property actually closes. Some of the most common contingencies are financing and satisfactory inspections of the property. In the purchase and sale agreement, the buyer states how many days from the effective date (the agreed upon price and terms date) that the buyer has to perform inspections and also apply for a mortgage. There are many cases when the buyer finds too many deficiences in the home and does not to move forward with the sale. At that time the home would be available again for someone new to make an offer. Also, many times, a buyer cannot get approved for a loan and again, the home goes back on the market as current. My recommendation is that if you are interested in a home that is pending (under contract) that you contact your real estate broker and have them contact the listing broker. If that deal falls thru, the listing broker will contact your broker asap! Also, you may be able to make a back up offer. Back up offers are great news for sellers!
0 votes Thank Flag Link Sun Mar 13, 2011
UNDER CONTRACT MEANS THE SELLER HAS ACCEPTED AN OFFER ON IT . THE ONLY WAY IT WILL BE PACK ON THE MARKET IS IF FOR SOME REASON THE DEAL FALLS THROUGH , SO YOUR WAIT TIME COULD BE UP TO A MONTH OR MORE . IF IT IS A CASH OFFER THE CHANCES OF IT FALLING THROUGH ARE PRETTY SLIM .
0 votes Thank Flag Link Sun Mar 13, 2011
Under Contract means that the buyer and seller have agreed on terms. More often than not, once a house is under contract, there is a Due Diligence period where inspections are done and if there are any other issues, they are addressed during this period. Any Realtor can get the answer as to how solid the Under Contract is.
0 votes Thank Flag Link Sun Mar 13, 2011
Hi Mid,

In addition to Tony's answer, ask your Realtor to call the listing agent to feel out the situation. In some cases you'll be able to submit a back up offer. If the transaction does fall through you'll see the home back on the market with an active status, usually within 24 hours.

Good luck!

Melia
Prudential CA Realty
melia@prusd.com
Web Reference: http://www.theindras.com
0 votes Thank Flag Link Sun Mar 13, 2011
Is it under contract, or contract with contingencies? Generally if it says contract than all contingencies have been met and closing may follow soon after. You could have your agent ask the listing agent if they feel the deal is going to close.
0 votes Thank Flag Link Sun Mar 13, 2011
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