If you`ve ever been on the hunt for a new home or property, you`ve likely come across the term “in contract” on various listings. But what does it actually mean when a property is in contract?

Simply put, when a property is listed as “in contract” it means that the seller has accepted an offer from a buyer and both parties have signed a legally binding contract. This contract outlines the terms and conditions of the sale, including the purchase price, closing date, and any contingencies or conditions that must be met before the sale can be finalized.

It`s important to understand that being in contract does not mean that the sale is complete. There are still several steps that need to be taken before the property officially changes hands. These steps typically include a home inspection, appraisal, and final approval for financing from the buyer`s lender.

During this period, the property will be listed as “under contract” or “pending” and will not be available for additional offers. It`s not uncommon for a property to be in contract for several weeks or even months depending on the specific conditions of the sale and any potential delays in the process.

As a buyer, it`s important to understand the implications of making an offer on a property that is already in contract. While it is possible for a buyer to make a backup offer in the event that the current contract falls through, it`s always best to assume that the property is off the market and search for other options.

Ultimately, understanding what it means when a property is in contract is essential for anyone looking to buy or sell real estate. By knowing the basics of the contract process, you can make informed decisions and ensure a smooth and successful transaction.