Listing Under Contract: What It Means for Home Sellers
If you`re a home seller, you`ve probably heard the term “listing under contract” before. But what exactly does it mean, and how does it affect your sale? In this article, we`ll discuss everything you need to know about listing under contract.
What is Listing Under Contract?
When a seller accepts an offer from a buyer, the home is considered “under contract.” This means that the buyer has made an offer that the seller has accepted, and the two parties have agreed to the terms of the sale. Typically, the buyer will then have a set amount of time to perform inspections and finalize financing before the sale is completed.
Listing under contract simply means that the home is still listed on the market, but the seller has accepted an offer from a buyer and the sale is pending. This is different from a home that is “off the market,” which means that the seller has decided not to accept any more offers.
Listing under contract is common in real estate, particularly in markets where demand is high and homes sell quickly. It allows the seller to continue marketing the home, in case the deal falls through or another buyer is interested.
How Does Listing Under Contract Affect the Seller?
When a home is under contract, the seller is legally obligated to sell the home to the buyer, provided that the buyer meets all the conditions stipulated in the contract. This can include things like performing inspections or securing financing.
If the seller receives another offer while the home is under contract, they cannot accept it unless the first contract falls through. However, they can continue to market the home and accept backup offers in case the first deal doesn`t go through.
Listing under contract also means that the seller should be prepared to vacate the property by the closing date, which is typically 30-45 days after the contract is signed. The seller will need to ensure that the property is in good condition for the buyer, and that any necessary repairs or maintenance are taken care of before closing.
Conclusion
Listing under contract is a common occurrence in real estate, and it can be beneficial for both sellers and buyers. For sellers, it allows them to continue marketing their home while a sale is pending, and it provides a backup plan in case the first deal falls through. However, sellers must be prepared to vacate the property and ensure that it is in good condition for the buyer. Overall, listing under contract is just one step in the home-selling process, and it`s important for sellers to understand what it means and how it can affect their sale.