what does under contract mean on zillow

jangame

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15-04-2025

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What Does "Under Contract" Mean on Zillow?

H1: Understanding "Under Contract" on Zillow

Seeing a property marked "Under Contract" on Zillow can be confusing. This article clarifies what it means, the implications for buyers and sellers, and what you should do if you're interested in a similar property.

H2: What "Under Contract" Actually Means

When a Zillow listing shows "Under Contract," it signifies that the seller has accepted an offer from a buyer. A legally binding purchase agreement is in place, though the sale isn't finalized yet. Several critical steps remain before the transaction closes, including inspections, appraisals, financing approvals, and final paperwork. It's crucial to understand this isn't a guaranteed sale; the deal could still fall through.

H2: The Stages After "Under Contract"

The period between "Under Contract" and the final closing involves several key phases:

• Due Diligence: The buyer typically conducts inspections, appraisals, and secures financing. Issues discovered during this phase might lead to renegotiations or the deal falling apart.
• Negotiations: Depending on the findings from due diligence, the buyer and seller may renegotiate terms of the contract. This could involve price adjustments, repairs, or closing date changes.
• Contingencies: Many contracts include contingencies, conditions that must be met before the sale proceeds (e.g., financing approval, satisfactory inspection). Failure to meet these can void the agreement.
• Closing: Once all contingencies are met and paperwork finalized, the sale closes, and ownership transfers to the buyer.

H2: Does "Under Contract" Mean It's Off the Market?

While generally true, the property isn't entirely off the market. The seller might accept a backup offer, especially if there's a significant contingency in the primary contract (like financing). This backup offer provides a safety net if the initial contract falls through. It’s always best to contact the listing agent to inquire about the possibility of a backup offer.

H2: What to Do If You're Interested in an "Under Contract" Property

Your options are limited but not impossible:

• Contact the Listing Agent: Reach out to the listing agent to inquire if they're accepting backup offers. Be prepared to present a strong offer, potentially exceeding the original offer.
• Search for Similar Properties: Focus your search on comparable properties currently available. Use Zillow's filters to refine your search based on location, price range, and features.
• Monitor the Listing: Keep an eye on the listing; if the "Under Contract" status changes, it may become available again.
• Consider Expanding Your Search Area: Explore properties in nearby neighborhoods or slightly adjust your criteria.

H2: Why Might a Deal Fall Through After "Under Contract"?

Several factors can lead to a contract falling through:

• Financing Issues: The buyer may not secure the necessary financing.
• Inspection Problems: Significant issues uncovered during the inspection might make the buyer unwilling to proceed.
• Appraisal Issues: If the appraisal comes in lower than the agreed-upon price, the buyer might back out.
• Title Problems: Unforeseen issues with the property's title can halt the process.
• Negotiation Breakdowns: Disagreements between buyer and seller during the due diligence period may lead to the deal's collapse.

H2: Key Takeaways

• "Under Contract" signifies a buyer has made an accepted offer, but the sale isn't guaranteed.
• The process involves due diligence, negotiations, and contingencies.
• While generally off-market, backup offers are sometimes considered.
• If interested, contact the listing agent or explore comparable properties.

Conclusion: Understanding the nuances of "Under Contract" on Zillow empowers both buyers and sellers to navigate the real estate market more effectively. Remember to always work with a real estate professional for guidance and support throughout the process. This ensures a smoother transaction and protects your interests.